The economic impact of the COVID-19 pandemic was still evident in the South Coast commercial real estate market in Q1, with virtually all indicators diminished compared to pre-pandemic levels. However, as the spring progresses, our brokers report a noticeable growth in activity and are cautiously optimistic that Q1 will prove to be the last stagnant quarter of the current cycle. Here are some summary points on Q1:
• Transaction value decreased 42% for sales and 30% for lease consideration, compared to Q1 5-year averages.
• Off-market sales and purchases by owner-users both dropped substantially, perhaps indicating “pandemic fatigue” in demand