CBRE isn't going to sugar-coat it. Global investment in commercial real estate was down in Q2—way down—according to the company's latest Global MarketFlash.
Hit especially hard were the Americas region, which saw a 70% decline year-over-year to $43 billion, the lowest level since 2010, according to CBRE. Declines in the Americas tended to be steepest in cities hit hard with COVID-19 infections, such as Seattle (-84%), Orlando (-81%) and New York (-71%). Hotel assets were the hardest hit class, with a 90% drop in volume.
CBRE is hopeful going forward, though. "If testing levels, tracking and treatments improve as expected in H2 2020, so will business confidence and investment activity," the company forecasts. "Increased clarity on pricing and rental rates should tempt discount-seeking investors to re-enter the market."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Scott Graham
Scott Graham focuses on intellectual property and the U.S. Court of Appeals for the Federal Circuit. He writes ALM's Skilled in the Art IP briefing. Contact him at [email protected].
