The S&P 500 has dropped considerably since the advent of COVID-19 although well off the lows. Although the economy is slowly starting to open up, it seems inevitable that we will have at least a short-term recession. This differs from past recessions such as the “Great Recession” because it has been an “engineered” recession to try to show down the spread of the virus. In contrast, the Great Recession was a result of a financial crisis due to too much leverage in the economy. At this time, it is hard to know how this will impact commercial real estate in general and different property sectors in particular. The question is how far property values might fall? No one really knows, but we can look at the Great Recession to give us some clues as to what might happen under a worst case scenario.
Recent Posts
Categories
Investor's Notebook
Smart people from around the world share their thoughts
Read more >The Macro View
Recent financial news and how it connects across all asset classes
Read more >Technology
Fintech, proptech and what it all means
Read more >Uncorked
A sideways look at the world of wine
Read more >The Architect
Some of the profession's best minds
Read more >Residential Investor
Making money from residential property investment
Read more >The Professor
Analysis and opinion from the academic sphere
Read more >Face to Face
In-depth interviews with leading figures in the real estate/investment world.
Read more >The Headhunter
Recruitment and career moves
Read more >The Analyst
Investment themes and trends
Read more >The Historian
A look back at previous cycles, events, characters
Read more >The Economist
Money, rates and prices
Read more >Political Insider
The inside scoop on Washington, Westminster and Whitehall
Read more >The Agent
Reflections on estate agency, today and in past times
Read more >Alternative assets
Investing in tangible assets
Read more >