COVID-19 - INVESTMENT Sector Implications - Commercial Real Estate

COVID-19 – INVESTMENT Sector Implications – Commercial Real Estate

As a result of the COVID-19 pandemic, investors, landlords and tenants are assessing impacts, adjusting operations and building and executing contingency plans to support people and their businesses.

The following assesses the impact of COVID-19 on the Investment sector in the Canadian commercial real estate space and how key considerations can help through this changing climate.

Investment

Impact: Uncertainty surrounding the long-term effects of COVID-19 has paused investment activity as investors are postponing marketing efforts, product launches and plans for expanding their portfolios.

First among the concerns are the short- and long-term impacts the pandemic could have on underlying property fundamentals and returns, including constraints in supply chain, consumer spending, business investment, hospitality and international trade.

Key Considerations: The decline in interest rates instituted to help deal with the crisis (five-year Canada bonds are 0.61 per cent at the time of writing, down more than 100 base points from 2019 year-end) is a significant mitigating factor.

Investors traditionally look to hard assets like real estate in times of uncertainty and the Canadian real estate market represents an attractive opportunity.

Source Real Estate News Exchange. Click here to read a full story

You must be logged in to post a comment