By Carley Beckum
It's no secret the COVID-19 pandemic has caused many changes to the commercial real estate industry. In a recent article, CREXi took a look at how long different transactions across the CRE industry stayed on the market to provide better insight into just how the pandemic has shifted the industry.
The results are telling.
CREXi reports that in March and April, at the peak of the pandemic, market transaction volume fell by 42%. As businesses started to open in June, activity seemed to resume. By July, transaction volumes had steadily increased. But, as the company stated, that's only part of the story. When trying to gauge a sector's health, one should look at a specific metric: how long does it take for a deal to close?
After looking at marketplace data from the company, CREXi states it's important to look at where the market was in Q4 2019 before COVID in order to draw some conclusions on where it's headed. In Q4 2019, inventory was sitting on the market at the same rate or faster than previous quarters. A trend that CREXi attributes to buyers and sellers wanting to close deals by the end of the fiscal year. Read more.