The coronavirus outbreak that started in China has now become a pandemic, impacting lives and disrupting economic activity across the globe. Public markets have reflected the severity of the outbreak, with equities plummeting to their quickest bear market in modern history and volatility surging to historic levels. The U.S. CRE market, just like every other corner of financial markets, will almost certainly be impacted. Ultimately, the severity of the impact will largely be determined by how quickly the virus can be contained in the U.S.
In this note we look at potential impacts of COVID-19 on the CRE market, how much stress properties are equipped to handle, and which property types are most exposed.
