Retail Investment Sales Volume Was Already Down Before Coronavirus Hit. What Will Happen Now?
Industry insiders know the virus might be here for the long term. But that means shoppers and investors will eventually find a “new normal.”
March 18, 2020 | Liz Wolf | National Real Estate Investor
As the world struggles with the impact of the coronarvirus pandemic, the question looms how it will affect U.S. commercial real estate as there are more quarantines, limited gatherings, travel restrictions and closings.
Bricks-and-mortar retail has already been grappling with overwhelming changes in consumer shopping behavior. A record 9,300 stores closed in the U.S. in 2019, reported global marketing research firm Coresight Group, shattering the previous record of roughly 8,100 stores in 2017. Real estate services firm Cushman & Wakefield has estimated that 2020 could beat that record with some 12,000 closings.
Malls have been hit the hardest, and now the pandemic has people avoiding public gathering places, including malls, theaters, fitness clubs and restaurants. Some malls have closed and others cut hours to prevent the spread of the virus.
