Market Improvements Continue but Gains are Fragile and Impacted by COVID
At the beginning of the summer of 2021, it appeared as though we had turned a corner regarding the impact of the pandemic on commercial real estate (CRE). However, with the rapid spread of the Delta variant it became quickly apparent that COVID-19 would continue to be a driving factor within the CRE market for a longer period of time. Supply shortages thwarted consumer demand and reduced confidence. However, New Jersey trended far better as the summer ended, steadily regaining workers, due in part to reduced virus transmission rates. According to recent labor reports the number of people continuing to receive government benefits dropped during November to the lowest level since mid-March of 2020. With labor shortages declining and the economy regaining momentum, following a summertime lull, stronger growth could occur in 2022, depending on the severity of the Omicron variant.