Published by REALTOR Magazine on July 7, 2020
Real estate professionals in the commercial and residential sectors largely believe the industry has already hit bottom and is now on the mend with expectations of growth over the next several quarters, according to the RCLCO Real Estate Market Index, based on a June 2020 survey of hundreds of top-level real estate executives nationwide.
However, the economic shutdown and global health crisis have hit commercial sectors particularly hard, and some businesses will mend faster and better than others, the report notes.
The pandemic is still playing out across multiple market segments in various ways, says Brad Hunter, managing director at RCLCO. “This isn’t a ‘cycle’ that we’re in—it was a sudden stop,” Hunter says. “Many sectors of real estate leapfrogged entire stages of the normal real estate cycle and went straight to the bottom. The good part about that is, as they say, you can’t fall off the floor. The real estate executives and developers that responded in this survey feel that the worst is behind us, at least for many sectors of real estate.”
Indeed, the RCLCO survey shows that most respondents expect real estate conditions to improve over the next 12 months. But a huge variation exists.
