WASHINGTON, D.C. – As the nation continues to reopen and the pandemic shows more evidence of finally receding, a new report from the Society of Industrial and Office Realtors® (SIOR), the world’s elite organization for industrial and office commercial real estate (CRE) professionals, shows an industry maintaining a continual recovery. The Q3 2021 SIOR Snapshot Sentiment Report provides member feedback on the performance of transactions and the current state and future predictions for the market. SIOR conducted its first quarterly survey in Q2 2020 following the onset of the COVID-19 pandemic.
The number of on-schedule transactions hits an all-time high since the start of the Sentiment Report survey. Conversely, on-hold or cancelled transactions continue to decline, hitting new lows.
- 82% of all transactions are on schedule, a new record and stark contrast to the 47% in Q3 2020.
- Only 6% of all transactions are now reported as cancelled, a new record low, compared to Q2 2021’s 7% and the high of 17% reported in April 2020.
- On hold transactions also dropped again, from 14% in Q2 2021, to just 12%. By comparison, 40% of all deals were on hold in Q3 2020.
Leasing activity hit another new high, with 76% of SIOR members reporting an increase, up from 72% in Q2 2021. This rise was fueled largely by the industrial sector’s continued growth.
- Industrial brokers report 85% higher leasing activity, compared to 70% in Q2.
- Among office specialists, 74% say activity is the same or higher when compared to Q2 2021.
In terms of confidence, member’s overall market confidence remained mostly unchanged, going from 7.6 (out of 10) to 7.5, fueled largely by a half-point decline in the office sector indicator.
- Industrial confidence remained steady at 8.0 for the third straight quarter.
- Office confidence dropped from 6.7 in Q2, to 6.2.
“The key factor in determining how the industry is doing comes down to the number of transactions that are moving forward,” says SIOR CEO Robert Thornburgh, SIOR. “And this latest report reveals that despite the Delta variant surge, supply chain issues at the ports, and rising inflation, the office market continues its recovery and industrial momentum shows no end. The top brokers who laid a solid foundation early on in the pandemic are now capitalizing on their hard work and as a result, their clients are reaping the rewards.”
The full report can be found on SIOR’s Thought Leadership page