Buyers are already looking for a repricing of deals that are under contracts as the COVID-19 epidemic accelerates across the world's largest economies, according to global real estate broker CBRE.
Based on 650 responses to a survey carried out by CBRE among its real estate professionals, the repricing so far is still moderate, with around two thirds of respondents indicating that it represented about 5% less than the agreed price.
In addition, the market is also seeing smaller bidding pools as well as fewer assets being brought to market as landlords wait to better understand the impact of the coronavirus outbreak on the global economy. However, on a more positive note, most ongoing transactions still look like they will be going ahead, according to CBRE’s senior economic advisor and chairman of Americas research Spencer Levy.
‘The last 10 days saw a meaningful fall of transaction volumes supply as measured by yields coming to market and demand as measured by confidentiality agreements. That said, most deals in market are proceeding,’ Levy said in a call on COVID-19 impact on commercial real estate. ‘A part of this is fuelled by savings money looking for a home particularly in the multi-residential sector, so most deals in market are still proceeding.’
