SIOR’s Q1 2021 Snapshot Sentiment Report Shows Optimism in CRE

The Society of Industrial and Office Realtors (SIOR) latest Snapshot Sentiment Survey (Q1 2021) showed a significant increase in optimism from Q4 2020. See below for highlights and the link to the full survey.

• With vaccinations increasing and economies opening up, deals are progressing at a rate not seen since before the pandemic.
  • 74% of transactions are progressing on schedule, more than doubling since Q2 2020.
  • On-hold transactions have dropped to 17%
  • Only 9% of transactions were cancelled, the lowest number in nearly a year
• Market confidence is highest since the start of the pandemic, rising to 7.3 (out of 10).
  • Industrial confidence is at 8.0, up from 6.9 in Q4 2020.
  • Office confidence rose to 5.9 in Q1 2021, up from 4.7 in Q4 2020.
• Leasing activity has surpassed pre-pandemic levels, with 62% of SIORs reporting more leasing, compared to 29% last quarter.
  • 38% of office brokers reported higher activity in Q1 2021 compared to 6% in Q4 2020.
  • 74% of industrial specialists reported high activity, up from 40% in Q4 2020.
• 53% of brokers reported higher asking rents, a 47% increase from the previous quarter.
• Available vacancy still varies, with 60% of industrial brokers reporting low vacancy vs. 24% of office brokers.
• Subleasing is most available in the office sector, with 75% of office specialists reporting more space, compared to only 14% for industrial.
• Development conditions overall are improving, with 51% reporting more development. This was a 24% increase from the previous quarter.
  • 70% of industrial brokers reported increased development
  • Only 16% of office brokers, however, reported good development conditions.
• 63% of SIORs note site acquisition prices increasing. 77% of industrial specialists indicate a seller’s market compared to only 35% of office brokers.
• Industrial and office still vary greatly for tenant concessions, with only 8% of industrial brokers reporting a tenant’s market, compared to 80% of office specialists.

See Full Q1 2021 report: Snapshot Sentiment Report