Commercial Property Executive
By Gail Kalinoski
As the cases of the coronavirus that causes the COVID-19 disease continue to increase across the U.S., topping more than 1,000 on Tuesday, some impacts on the commercial real estate market are starting to be seen. Reports from Marcus & Millichap and Colliers International predict most impacts to be temporary, perhaps only lasting several months until the spread of the virus is contained.
Marcus & Millichap's Coronavirus Outbreak: Implications for Real Estate report notes the U.S. economy is well-positioned to withstand shocks to the system from the coronavirus citing “sturdy job creation and growth drivers.” It states real estate supply and demand is generally in balance and should support stable occupancy and a steady outlook. It adds that because real estate is a long-term investment, it offers investors less volatility than most other investments. The report states previous outbreaks such as SARS, the H1N1 “swine flu” and avian or bird flu generated short-term market instability that stabilized within three to six months. Read more.