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."
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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].
