COVID-19 will transform commercial property dynamics
Thursday, July 16, 2020
Significance
Retail and hotel properties are bearing the brunt of the collapse in demand due to the imposition of lockdowns and social distancing measures.
Impacts
- The massive injections of liquidity into the financial system are creating a disconnect between buyers’ and sellers’ price expectations.
- Occupier demand and transaction volumes have suffered but rental yields have not risen sharply, mainly because of ample liquidity.
- The number of hotels changing hands has fallen sharply in the US market, reflecting illiquidity and the damage from COVID-19 lockdowns.