Instant Insights / Coronavirus and CRE


Thank you for sharing!

Your article was successfully shared with the contacts you provided.

This economic event is unprecedented. While some are using the 2008 Financial Crisis as a guidebook, there has never been a public health event that has sparked an economic disruption of this magnitude. As a result, uncertainty is rampant, according to Brett Butler of Stan Johnson Co., and it is difficult to predict a path toward recovery.

“The 2008 Financial Crisis is the only comparable event that comes to mind, but that was different due to bad lending practices,” Butler tells GlobeSt.com. “I have never seen a health crisis threaten the market before. It’s hard to say how the market will react with all the uncertainty—when will businesses be able to open again? How much impact will the downtime have on the overall economy? We’ll just have to wait and see.”

Uncertainty is guiding the market today, and most players are pausing completely. “It’s caused a lot of uncertainty in the market, and there are quite a few buyers, lenders, and tenants taking a wait-and-see approach,” says Butler. “The lending markets are all but frozen, as they pause temporarily to assess the situation. Some buyers have elected to hit the brakes, although not all—some are still quite active. But the longer-term unknown is how tenants will react and be impacted. Some sectors have chosen, or been forced, to close up shop, which could lead to issues paying rent if that last for a while.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.