SIOR's newest Snapshot Sentiment Report, providing feedback from hundreds of member-brokers on the performance of transactions during Q1 2021, highlights a market not only exceeding expectations, but also laying the foundation for a groundswell of new business in 2021 and beyond. The full report can be found on SIOR’s Thought Leadership page.

As the report shows, broker confidence has risen to levels not seen since the survey began in 2020:

• Overall market confidence among surveyed brokers hit a high of 7.3 (out of 10), compared to the low of 6.2 in Q4 2020
• Industrial sector confidence reached its highest-ever number at 8, a big jump from 6.9 in the previous quarter
• Office market confidence also rose dramatically to 5.9, up from Q4 2020’s 4.7 rating

Positive leasing activity is a big reason for this significant boost in confidence. Overall leasing is actually exceeding pre-pandemic levels, with 62% of members reporting more activity, compared with 60% in Q4 2019 and only 29% last quarter. 74% of all deals are progressing on schedule, versus 67% in Q4 2020. But the good news doesn’t end there:

• Brokers report on-hold transactions have plunged down 83% since last spring and overall canceled transactions are at their lowest point in a year, impacting just 9% of deals
• Canceled office transactions dropped 32% to only account for just 14% of deals
• Industrial leasing activity also rose to a new high of 74%, up from 40% in Q4 2020
• 78% of industrial specialists indicate higher asking rents, a 53% increase since last quarter

“If there is any doubt the commercial real estate market still has significant runway for growth, the results of this survey can put that uncertainty to rest,” says SIORs CEO Robert Thornburgh, SIOR. “This is direct, on-the-ground feedback from the best brokers in the industry, from a range of markets, and they all tell the same story: deals are happening at a far greater pace than we’ve had in over a year, and the outlook ahead is the brightest we have seen since the pandemic reshaped our world.”