CRE investors still taking a wait-and-see approach
August 10, 2020 | Kasi Johnston | Mortgage Professional America
Second quarter transaction volumes for commercial property remain severely depressed and changes in pricing are moving slower than expected, according to new data by CoStar Group, a leading commercial real estate analytics company.
Early impacts from the coronavirus pandemic saw sudden investor pullback around mid-March, resulting in sales volume in the commercial real estate space to plunge. Deals for the quarter are still being reported, with final numbers coming down the pipeline soon, CoStar is predicting a 65% to 70% decline year over year.
“A great deal of uncertainty remains in the market,” said Andrew Rybczynski, managing consultant at Costar Advisory Services. “Rent collections held up in many property types, but with coronavirus infection rates rising and extended unemployment insurance due to expire at the end of July, a wait-and-see approach prevails, understandably.”
