- SIOR Member Feedback Reveals 74% Of Deals Progressing On-Time-

- Leasing Activity Now Exceeding Pre-Pandemic Levels -

WASHINGTON, D.C. – The Society of Industrial and Office Realtors® (SIOR), the world’s premier organization for industrial and office commercial real estate professionals, released today the results of its newest Snapshot Sentiment Report, providing feedback from hundreds of member-brokers on the performance of transactions during Q1 2021, along with their outlook for the next six months. The report highlights a dramatic contrast to what these same brokers shared in a previous report encompassing Q4 2020, and illuminates 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 considerably, to levels not seen in nearly a year:

• 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

One of the reasons for the intense rise in market confidence is that on-time transactions have more than doubled since the height of the pandemic in Q2 2020. Additionally, SIORs reported an overall decline in on-hold and canceled transactions. Leasing activity is actually exceeding pre-pandemic levels, with 62% of members reporting more leasing, compared with only 29% last quarter and 60% in Q4 2019. Positive leasing activity is a big reason for SIOR broker’s overall boost in confidence. Other notable improvements include:

• 74% of all deals are progressing on schedule, compared to 67% in Q4 2020
• 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

Nationally, 55% of SIOR brokers say economic conditions are positively impacting business, compared to only 36% who said the same in Q4 2020. All brokers said the pandemic is the biggest factor in determining overall market confidence. But as the survey reveals, confidence is clearly on the rise.

“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.”

Echoing Thornburgh’s statements are those from surveyed brokers who shared their thoughts in the recent report. One Utah-based SIOR member says, “demand is far outpacing supply,” while a broker in L.A. shared that they are seeing “all-time highs for lease rates, sale prices, land prices and all-time lows for CAP rates.” Another member in New Jersey discussed how a lack of inventory is driving the market saying, “Landlords are in total control and can choose their tenant.”