Primior Team

Real Estate Market Trends – January 2021

2020 was a difficult year, having a profound impact on the country’s economy.  However, the vitality of the CRE market and REITs disrupted by the COVID-19 pandemic is projected to improve in 2021. This recovery is contingent on vaccine implementations and pandemic conditions, and will differ amongst sectors. At Primior, we realize that while there may be no certainties, our expertise, extensive research and first-hand performances enable us to help guide our investors. Here are some of our key positions on CRE and REIT outlooks for 2021.

New Investments in Rising Sectors

REITs have predominantly been strong amid the pandemic due strong financial measures taken after the Recession. While shopping center REITs have been unsustainable during the pandemic, big-box retailer, grocery, and healthcare segments are attracting new investments. In addition, investments in warehousing, life sciences, and data centers are expected to grow in 2021.

According to CBRE, US industrial markets, including warehousing and distribution centers have proven to be the most highly sought commercial properties in 2020. This is attributed to rising e-commerce sales during the pandemic. In 2020 alone, the top 100 transactions equaled 103.8 million sq. ft, a 17% increase from the year prior.

Vacancy Rates to Minimally Decline

CoStar estimates that CRE vacancy rates will rise in all sectors this year. This slight increase comes from the unresolved pandemic and is expected to accelerate once workers can return to offices and commercial and multifamily tenants can pay rent. Despite strong demand for logistics spaces, industrial vacancy rates have rose due to increased construction. Vacancies are estimated to peak by the end of 2021.

 

Recovering from Financial Strains

The year 2021 will mark the journey to recovery for CRE markets and REITs. During the April–July period in 2020, the average collections of rent for office, health care, apartments, and industrial REITs were over 90%. For the shopping center REITs, rents dropped to 50% in April, but steadily rose to 80% in August. Although there will be a wide variation across property sectors, data indicates economic health will stabilize when cases of COVID-19 fall.

Conclusion

For REITs and CRE, the most significant factor is going to be progress against the COVID-19 pandemic. Primior has the experience and objectivity to gather all the information, fit the pieces together and craft an approach specifically designed for your investment goals. Contact us today to see how we can help.

Book Strategy Call

Book a call with us to discuss property management, real estate asset management, or our other services and investor solutions.

Download: Opportunity Zone Tax Loophole
How Investors Are Eliminating Capital Gains Taxes in California in 2025

Report by Primior, a Southern California real estate advisory, development, management, and investment firm.

More Insights

1031 Exchange Timing Strategies
Why Most 1031 Exchange Timing Strategies Fail (And How to Fix Them)
October 1, 2025

1031 exchange timing errors cost real estate investors millions in unnecessary taxes each year. Despite the significant tax... (Keep reading?)

The Opportunity Zone 180-Day Rule Explained: Don’t Miss Your Tax Break [2025 Guide]
September 30, 2025

The opportunity zone 180-day rule provides a crucial window to defer most important capital gains taxes through strategic... (Keep reading?)

12 Best Southern California Real Estate Investing Hotspots for 2025
September 25, 2025

California real estate investing feels like a rollercoaster ride these days. The market has its thrills and challenges,... (Keep reading?)

Opportunity Zone 10-Year Rule: Hidden Tax Benefits Most Investors Miss
September 23, 2025

The opportunity zone 10-year rule stands out as one of the most powerful tax advantages in today’s real... (Keep reading?)

Portfolio Digital Asset Management: Essential Guide for Enterprise Success in 2025
September 20, 2025

The digital asset market has reached an impressive $2.7 trillion market cap, making portfolio management a vital skill... (Keep reading?)

What is Asset Management: The Truth Behind $100T Industry [2025 Guide]
September 11, 2025

Asset management represents a staggering $104.4 trillion industry managed by the top 500 firms as of 2019. The... (Keep reading?)

Real Estate Tokenization: Why Traditional Investors Are Switching to Digital Assets
September 10, 2025

Real estate tokenization is transforming property investment. Market experts project its value to reach $1 to $4 trillion... (Keep reading?)

Solving Real Estate’s Biggest Problems: A Practical Guide to Blockchain Integration
September 5, 2025

The global real estate market is worth hundreds of trillions of dollars. Blockchain and real estate have started... (Keep reading?)

Join Primior's Newsletter

Enter your information to download the eBook:

Reserve Your Spot

Next session begins in...
00
Days
:
00
Hours
:
00
Minutes
:
00
Seconds

Not a solicitation to buy or sell securities. Educational purposes only. Accredited/HNW investors encouraged to attend. All investing involves risk. Past performance not indicative of future results. This site is not a part of the Facebook™ website or Facebook™ Inc. Additionally, this site is NOT endorsed by Facebook™ in any way. FACEBOOK™ is a trademark of FACEBOOK™, Inc. Privacy Policy. Terms & Conditions.

Apply Now

Enter your information to download the report:

Enter your information to unlock the case study:

Free guide unlocked:

Click the button below to access your free guide.

Enter your information to download the free guide:

Enter your information to download the free guide:

You've joined our newsletter.

Thank you for joining our newsletter! We will send you monthly insights, updates, and feature launches directly to your inbox.

You've joined our newsletter.

You will receive email notifications as soon as Gaia by Primior is launched and investment opportunities become available! Thank you for being a future Gaia investor.

Join Waitlist

Interested in participating in the future of real estate investing? Enter your contact information below to be placed on our waiting list and receive notifications and investment opportunities directly to your inbox once they are available.

Primior Application Form

Ready to work with Primior?

Click the button below to complete a short assessment and schedule a call with Primior’s Investor Relations team.

You've joined our newsletter.

Thank you for joining our newsletter! We will send you monthly insights, updates, and feature launches directly to your inbox.

Contact Us Now