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THE RUNDOWN

How will the coronavirus affect commercial real estate?

There are four main ways that the epidemic will affect CRE:

  1. Interest rates: good news, as the virus increases its hold, interest rates have decreased

  2. Uncertainty: Uncertainly increases anxiety, and people will avoid concerts, sporting events, or restaurants. They lose sales, as do the operations that supply them, e.g. trucking. They all rent or own commercial real estate.

  3. People will avoid travel – affecting tourism, transport, and so on.

  4. Supply chain disruption: Steel production is down 90% in China. Auto sales in Asia down 95%!

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