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Commercial Real Estate Prices and Covid-19 - New Publication by Prof. Martin Hoesli

In a new novel study, GFRI's Prof. Martin Huesli and his co-author Richard Malle, analyze the effects of the COVID-19 pandemic on commercial real estate prices.

They start by highlighting caveats to bear in mind when referring to direct real estate indices. They then analyze the behavior of commercial real estate prices during the pandemic, emphasizing differences across property types. For that purpose, they use data for both direct and listed real estate. They further discuss changes in the main factors affecting commercial real estate pricing. The article then turns to discussing the likely trajectory of commercial real estate prices in the future. They report that retail and hospitality properties and to a lesser extent office buildings have been affected the most by COVID-19. The other sectors, in particular the residential and industrial sectors, have shown more resilience. They maintain that the future trajectory of real estate prices will vary across sectors and that the type and location of assets will become increasingly important in their valuation.

 

The paper will be published in the forthcoming issue of the Journal of European Real Estate Research, and can be found here.

 

September 25, 2021
  News and Insights