In the last downturn, some CRE investors were able to scoop up distressed assets by this point in the cycle. But so far, those conditions haven't materialized in the Covid-19 crisis, according to Real Capital Analytics.
The Global Financial Crisis started in December 2007. In Q1 2008, commercial property price growth turned negative when the RCA CPPI US National All-Property Index dropped 2.6% year-over-year.
In early 2007, distressed sales totaled less than 0.5% of commercial real estate transactions. In Q1 2008, they inched up to just under 1%. By the end of 2010, distressed sales were 20% of the total sales market, according to RCA.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
