Price Dynamics Platform Quantifies Impact of Pandemic on Commercial Property Market
The Price Dynamics Platform just released a special report quantifying the impact the pandemic has had so far on the investment property market in the US. Based on the Platform’s Investors Supply/Demand Indexes, the study quantifies liquidity impacts measured by the Supply-Demand Gap in terms of asset pricing implications.
So far, New York is the hardest hit among the eight metros examined, with a predicted average price drop between 19 and 30%, reflecting a drop in liquidity already ¾ of the total liquidity drop that occurred in the entire Global Financial Crisis of 2008-09. Among property sectors nationwide, retail is hit hardest with 14–19% predicted price drop and liquidity down already almost 60% as much as it dropped in the entire GFC.