CBRE Deal Flow—the company’s proprietary digital marketing hub for property sales—indicates that investor inquiries and newly launched deals have recovered to near-2019 levels.

 Investor Activity on Track to Full Recovery 

Robust economic recovery and vaccinations have greatly restored investor confidence. In recent weeks, the number of deals tracked by CBRE Deal Flow has almost leveled with 2019’s record total (Figure 1). The pickup in listing activity was most evident in February when vaccinations first ramped up in the U.S., and in June when over half of the U.S. population had received at least one dose of the vaccine.

Figure 1: Deals Launched (% Change from 2019, 4-week moving average)

Source: CBRE Deal Flow, July 2021.

Investor inquiries or pre-purchase activity, as indicated by the number of signed confidentiality agreements, has rebounded to 2019 levels since late May 2021. Liquidity remains high as investors plan on deploying significantly more capital than last year. The Sun Belt markets particularly saw record-level investor interest. The inquiries also align well with closed transaction volume, which recovered strongly in Q2.

  CBRE expects an even stronger rebound of investment activity in the second half of 2021. Despite the COVID-19 resurgence due to variants, health experts insist existing vaccines are highly effective against them. Assuming no material return to large-scale lockdown, capital flows in Q4 likely will exceed 2019’s level.

Figure 2: Investor Inquiries (% Change from 2019, 4-week moving average)

Source: CBRE Deal Flow, July 2021.

The U.S. market will continue to lead capital markets recovery in H2 2021. Some asset types will take longer to recover than others, but investors are remarkably active and capital is abundant.