The Q3 bounce has been stronger than expected, and consumers remain resilient. But with concerns about volatility rising and income still hard to find, it’s clear the challenges of 2020 are not over.

While the commercial real estate market continues to cope with impacts of the pandemic, we outline performance expectations for key sectors and dig into the dispersion created by this environment.

While uncertainty is still top of mind, we believe active managers will find opportunity in the dispersion across asset classes, industries and ratings

Credit markets have been remarkably steady this year and enter Q4 on solid footing. This tight spread environment presents challenges, but the largest risks we see lie outside credit markets.

Q4 is set to cap a banner year for commercial real estate as the market moves into a new expansion

Our fast-moving recovery is steering into headwinds from policy, global growth uncertainty and pandemic-related supply disruptions. With valuations high across the board, markets enter Q4 with healthy growth, but waning tailwinds.