By Crowdstreet | AZ Big Media
As we move deeper into 2021, the U.S. commercial real estate (CRE) market is poised to move beyond its trough of 2020 and enter a new cycle of growth. Thanks to a reported 3.8% increase in GDP and the mass distribution of COVID-19 vaccines, recovery comes with the anticipation of increased transaction velocity—nearly 40% increase in total U.S. CRE transactions for the next year, according to CBRE’s mid-year 2020 report. In this new cycle, certain asset classes, such as industrial, will outperform while other asset classes, particularly retail and hospitality, will likely underperform. Different metros will also recover at different rates and we heavily weighted regional factors like population growth, the employment base, and more when determining the best places to invest in real estate in 2021. CrowdStreet‘s most favored markets also exhibited a subjective desirability or competitive advantage.
Whether we label this as a metro’s “vibe” or “quality of life,” CrowdStreet’s top markets possess a curated blend of multiple tangible and intangible attributes that coalesce to create attractive communities. As our country looks to resume growth, we are keeping an eye on many of the growing secondary markets we valued prior to the pandemic. But with a post-COVID twist, we’re expanding that list with the addition of select markets within the Mountain region.