During Lehman and for the next 9 months, no one wanted to buy stocks. Or homes. Or much of anything. There was too much fear. Eventually, buyers came back. Look at equity valuations today compared to a dozen years ago.
Now look at CRE today. From Bloomberg: “Commercial real estate values are poised to fall much further before they can begin to recover. “I don’t know that values will necessarily get back to where they were in 2019 for every sector:” Brookfield’s MD Nailah Flake-Brown.”
Further: “Commercial real estate deals in New York City have taken a major hit as the pandemic continues to roil the local economy.
Investment sales totaled $10.5 billion in the 1st half of 2020, down 54% from a year earlier & a record low since the Real Estate Board of New York began reporting the data in 2015.”
When will the market recover; better yet, will it recover & how will you know? Good data is the answer. Private assets that trade infrequently used to be almost impossible to price but collecting, validating & credentialing critical data from a building or a portfolio of properties puts investors on a path to unlock value through improved accounting metrics that move assets from Level 3 (illiquid) to Level 2 (marketable alternatives). We can get you there. #VerifiedbyInveniam