Earlier this year, our Real Estate Advisory Group (REAG) collaborated with the GRI Club, the world’s largest real estate club, to survey 325 senior directors within the commercial real estate industry and find out how real estate markets were coping during this unprecedented time in investment history.
Our Findings Include
The majority of respondents (64%) fear the impact of a recession on European commercial real estate markets, with almost 80% believing the recovery will be U-shaped and not sharply correct like in a V-shaped recovery.
- Respondents from the U.S. also believe the economic recovery will be U-shaped (83%).
- When asked about how the COVID-19 pandemic has impacted their own country’s GDP growth, most respondents anticipated significant contractions of between 5%-10%.
- Respondents expect the worst long-term damage in commercial real estate to be among retail, hotels and restaurants and bars (accounting for 37%, 36% and 16% of responses, respectively).
- More than a third of respondents (36%) believe the industrial and logistics sector will emerge the strongest from the crisis.
- Investors may take comfort in the fact that most respondents said they were slightly more optimistic about the European real estate sector than they were at the start of the pandemic (34%).
Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.
Real Estate Advisory Group
Leading provider of real estate valuation and consulting for investments and transactions.