US Market Shuffle: Market-Watchers are Zeroing in on Commercial Real Estate Firms

The US market might be the most volatile of them all while the country continues its struggle with the pandemic. Individual companies have continued running their own research to keep up to date with the ever-changing market climate. 

The first quarter of this year saw many expected, as well as unexpected shifts while the country as a whole battled the roiling virus as it spread across the US. 

Work was put on hold for a couple of months. People put off and canceled their moving plans. They canceled their travel plans to stay inside their homes during lockdown. And the real estate industry took the biggest hit in the States since 2008. 

Because of this, the secon- quarter of 2020 isn’t looking too great. Lack of sales transactions within the real estate industry means that this year’s second-quarter numbers are going to be less than ideal. 

Wall Street analysts looking at commercial real estate are predicting a particularly harsh second-quarter inline with remote work, furloughs, and massive layoffs leaving many offices empty and obsolete. 

Business Insider reported that a William Blair analyst said that they’re predicting an earnings decline of 40% year-over-year. 

However, it’s not all doom and gloom. The same article points to another analyst stating that the quarter is expected to be bad, but that firms like Cushman & Wakefield, CBRE, JLL, and Colliers International are in a better financial position than they were during the last recession. 

Other optimistic news comes from an analyst from Zacks Research Financial, who singled out Ares Commercial Real Estate (ACRE) as a profitable choice for investors as it has upgraded its underlying business.

Zack Consensus Estimate for ACRE has increased by 37.6% over the last three months, as well.