After a decade of strong performance in which property prices more than doubled, the commercial real estate market, like many other markets across the globe, was halted in its tracks by the pandemic.

Q3 starts off at a weaker place than any quarter since WWII as a result of the COVID-19 pandemic, but with reopening has come optimism.

Despite multiple “worst-ever” indicators, U.S. equity and corporate credit markets rallied back to near pre-pandemic levels in Q2. With markets trending one way and economic data another, we’re left with mixed signals.

With the pandemic now (hopefully) firmly in the rearview mirror for domestic markets, a new environment has emerged for high yield bonds and senior secured loans.

As the economy rebounds, CRE fundamentals are materially improving. Still, investors must navigate uncertainty around how pandemic trends will impact certain property sectors.