2020 Midyear Market Report
Adapting to the coronavirus economy and the “new abnormal”
Against the backdrop of the coronavirus pandemic, South Coast commercial real estate—like the economy in general—is in low gear. Transaction volume is down significantly compared to previous years, providing limited data to re-establish pricing for the market. In addition, the variability in the economy—with cycles of opening and closing—creates a rollercoaster effect that keeps property values in flux. Here are the highlights:
• Transaction value decreased 68% for sales and 44% for lease consideration, compared to the prior 5-year averages.
• Transactions hit a trough in April and May, but recovered momentum in June and into July.
• Since the beginning of the year, for sale inventory expanded 19% while total available space for lease stayed level.
• Prices and rents have not decreased significantly, so far.
• Demand is soft and will likely remain so for the foreseeable future.
• However, deals are happening and there is opportunity in the current market.
Read the full report here.