CORFAC News

The commercial real estate market continued to see positive gains across much of the country, according to CORFAC International’s 2Q 2021 Business Impact Survey. Despite the resurgence of COVID-19 cases and safety regulations, business in many sectors is booming from coast to coast:  

• More than 86% of respondents reported a positive business climate in their markets in 2Q 2021, which is an increase over sentiment in the first quarter of the year.

• Deal momentum is also on the rise: More than 60% of respondents reported that transactional activity in the second quarter increased over first quarter. 

• CORFAC members also expect to start seeing more of their clients as 2021 progresses. More than 85% of respondents anticipate more face-to-face interactions with their clients in the next six months. 

• Members reported that transactions and projects in the pipeline are favorable with 65% of respondents saying new business is coming from new clients who are locating to their markets. Sixty percent of respondents also said new business is being driven by existing clients who are expanding.

• Not surprisingly, the industrial/manufacturing segment continues to be a key driver of CORFAC members’ transactional activity in the second quarter. Other primary sources of business include the ecommerce sector, office subleasing/disposition, the cold storage/warehouse segment and adaptive reuse transactions.

• As members look ahead at factors that may impact their business for the rest of the year, the economy (71%) continues to be a driving force, followed by local real estate market factors (58%), construction costs (47%) and supply chain challenges (38%).