The novel coronavirus pandemic forced offices and retailers to shift operations online over the past three months — leading some to speculate that demand for commercial real estate will drop, sending prices plummeting.
But most commercial properties will not be selling for massive discounts, according to Hessam Nadji, CEO of Marcus & Millichap, a California-based national commercial real estate brokerage.
“There’s a broad brush sentiment that commercial real estate is going to get distressed pricing across the board and that is just not the case,” Nadji told Yahoo Finance. Apartments and warehouses, in particular, are performing “very well.”
As Americans shelter in place, demand for apartments and condos have remained stable. Some 41.4% of investors reported multifamily acquisitions in their market in May compared to 33.6% in April, according to a monthly survey of almost 500 members in the NAIOP (National Association of Industrial and Office Properties) Commercial Real Estate