2021 Commercial Real Estate Outlook

Deloitte Insights

2021 Commercial Real Estate Outlook

Rebuilding to enhance resilience

In our 2021 CRE Outlook, 200 industry leaders weighed in on how their companies are recovering from the COVID-19 pandemic. Learn how companies can overcome formidable challenges to gain momentum in the coming year.

Breaking inertia, gaining momentum

The impact of COVID-19 on the global economy and the CRE industry has made 2020 the most memorable year in recent history. CRE companies have needed to digitize operations, close physical facilities due to extensive lockdowns, and prepare for reopening, while ensuring the health and safety of employees and occupiers and considering the financial health of tenants and end users.

With economic recovery heavily dependent on a vaccine, the length of this downturn remains uncertain. As we write this outlook, economic activity is contracting due to a fresh resurgence of the virus in Europe.1 Large Asia-Pacific (APAC) economies such as Japan and Australia haven’t yet turned the corner to growth, India is facing a severe downturn, and strained relationships between the United States and China are creating significant geopolitical tensions.2 According to Deloitte’s economic forecast, in the United States, it is expected that “a vaccine and/or treatment will allow normal economic activity to begin to resume in mid-2021.”3 As it will take time to deploy the vaccine, our economists expect growth to remain somewhat constrained for a period of time.4 (Click here to read Deloitte’s latest US Economic Forecast.)

1. Jasim Zahid, “COVID-19 hits North American P&C insurers’ H1 operating performance – Fitch,” S&P Global Market Intelligence, August 26, 2020. View in article

2. S&P Dow Jones Indices, “S&P Insurance Select Industry Index,” accessed September 30, 2020. View in article

3. Swiss Re Institute, “World insurance: Riding out the 2020 pandemic storm,” Sigma No. 4/2020, July 2020. View in article

4. Ibid. View in article

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Authors:

Jim Berry
United States

Kathy Feucht
United States

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