While commercial property prices have not yet had a major decline in connection with the coronavirus pandemic, the gap between buyers' and owners' expectations on price has widened, Real Capital Analytics Senior Vice President Jim Costello wrote in an RCA Insights blog post.
Researchers at the MIT Center for Real Estate Price Dynamics Platform analyzed the disconnect and found that the gap is growing, especially in the retail and office sectors, Costello wrote.
If owners tried to make up the recent decline in deal volume by cutting prices, the MIT researchers found, they would have to reduce office prices by 12% and apartment prices by 8%, Costello wrote.
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Jane Wester
Jane Wester is a litigation reporter for the New York Law Journal. Email her at [email protected] or find her on Twitter @janewester.
