Real estate deals are collapsing across the country as a resultof the Covid-19 pandemic. That's according to a new report by RealCapital Analytics, which says the percentage of deals falling outof contract in US, European and Asian marketshave jumped in recent months, while at the same time the totalnumber of completed deals in those areas have sunk as well.
Specifically, the report said the number of terminated contractdeals as a percentage of closed transactions has risen from 2.1% inApril to 2.9% in May. That number is up significantly over the 0.7%of deals that fell through in March, and is seven times the averagepercentage of deals falling through between 2015 and2019, according to the report.
The report also noted that number is still far below the 12.8%fall-through rate the markets saw during the peak of the GreatRecession towards the end of the 2000s.
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Max Mitchell
Max Mitchell is ALM's Regional Managing Editor for The Legal Intelligencer, New Jersey Law Journal, Delaware Business Court Insider and Delaware Law Weekly. Follow him on Twitter @MMitchellTLI. His email is [email protected].
