Thanks to PIMCO for their illuminating report on commercial real estate amid COVID-19. Among the most notable takeaways: “The impact of the COVID-19 crisis has certainly been felt in the commercial real estate market. The public side of CRE felt the immediate pressure as the broader public sell-off included REITs, which were down by about 30%. On the private side, transaction volumes plummeted, bringing the market to a standstill. The next wave of public dislocations will be deeper, as ratings downgrades spur a second wave of selling pressures. Stage 2 will be the capital injection & balance sheet clean-up phase, which we expect to occur over the next 6-12 months. Here, we expect the more proactive, cash-strapped borrowers to seek equity cash flow injections.”
At Inveniam, we appreciate the acute pain owners of CRE are facing under this period of duress. Which is why we have worked in an arduous manner for 4 years to develop software-as-a-service to give real-time pricing based on validated, notarized data – all in an effort to unlock value from corporate balance sheets at a time when cash is king.