It may feel like we're inuncharted waters with COVID-19, but Lee Menifee, PGIM Real Estate'sHead of Americas Investment Research, says there are things we canlearn from history.
"I absolutely do think there areclues from past downturns," Menifee says. "The thing that I'mlooking most carefully at [this time] is how real estate is priced,both in an absolute sense and versus other asset classes, in thisdownturn relative to previous downturns."
In past downturns, real estatevalues have fallen for two reasons, according to Menifee. Onereason was that the underlying income in properties fell. The otherwas that investors attached a higher risk to certainproperties.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
