While commercial property prices have not yet had a majordecline in connection with the coronavirus pandemic, the gapbetween buyers' and owners' expectations on price has widened, RealCapital Analytics Senior Vice President Jim Costello wrote in anRCA Insights blog post.
Researchers at the MIT Center for Real Estate Price DynamicsPlatform analyzed the disconnect and found that the gap is growing,especially in the retail and office sectors, Costello wrote.
If owners tried to make up the recent decline in deal volume bycutting prices, the MIT researchers found, they would have toreduce office prices by 12% and apartment prices by 8%, Costellowrote.
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Jane Wester
Jane Wester is a litigation reporter for the New York Law Journal. Email her at [email protected] or find her on Twitter @janewester.
