Covid Price Declines Vary; On Average, 10%
August 5, 2020 | Green Street Advisors
The Green Street Commercial Property Price Index was unchanged in July. Property values were marked down in March and April—depending on property type, from 5% to 25%—but are untouched since.
“The transaction market is quiet these days—and properties that are trading are ones relatively unaffected by the pandemic—so it’s tough to say with certainty how much pricing of some property types has changed,” said Peter Rothemund, Managing Director at Green Street Advisors. “But it’s pretty clear that the range of outcomes is going to be wide. Record-low interest rates mean properties with a stable top-line outlook will hold up well. Those with some risk, say multitenant office, probably see something like a 10% hit on average. And those with a lot of hair, like lodging and some retail, lose even more.”
