The topic of distressed properties as a potential investment target has been prevalent over the past several months, but sales data suggests distress isn't yet as widespread as many think.
According to an analysis by Colliers director of research for U.S. Capital Markets Aaron Jodka, distress sales have averaged $2.1 billion per quarter since the beginning of 2023. This is below the quarterly average of $2.2 billion from 2017 to 2019 and is much lower than the amount that occurred during the Global Financial Crisis of 2008.
"Based on this metric, distress isn't widespread; it's normal," said Jodka, noting distress has been limited since the pandemic began. "However, it is on the rise, with newly troubled loans running at a pace 5x pre-pandemic."
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
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.