The pandemic has caused a 71% drop in real estate deals yearover year in April, according to Real Capital Analytics' CommercialProperty Price Indices (CPPI).
"Social distancing measures and travel restrictions have made itdifficult to perform the necessary due diligence to close on aproperty, and many deals that were already in contract fellthrough," the report states.
The CCPI states that COVID-19 did not have an impact on pricingfor properties that sold in the US like it did on the volumefigures. The majority of deal closings in April were deals wherethe prices were already under negotiations. Those negotiations tookplace before the "mushrooming" of the crisis and buyers would haverisked losing their deposits if the deals were not complete.
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Dan Clark
Dan covers cyber security, legal operations and intellectual property for Corporate Counsel. Follow him on Twitter @Danclarkalm.
