After a decade of strong performance in which property prices more than doubled, the commercial real estate (CRE) market, like many other markets across the globe, was halted in its tracks by the COVID-19 pandemic. Activity has dried up and uncertainty has permeated the outlook. Ultimately, the market will be dictated by the path of the pandemic and the economic recovery, though different property types face starkly disparate backdrops.
- The U.S. economy likely saw its economic trough in late April or early May, though significant uncertainties surround the recovery.
- The COVID-19 pandemic has caused activity in CRE capital markets to dry up as investors seek to understand the short- and long-term impacts of the downturn.
- Performance dispersion between property types has increased in recent years, and the pandemic may act as an accelerant for existing trends.