July 1, 2020
Commercial real estate executives confirmed a downturn in second-quarter market conditions due to job losses and business shutdowns related to COVID-19, according to The Real Estate Roundtable’s 2020 Q2 Economic Sentiment Index, released Tuesday.
“The commercial real estate industry, like all industries, experienced in the second quarter a sudden onset of economic disruption due to business lockdowns and stay-at-home shutdown orders put in place to combat the pandemic,” said Real Estate Roundtable president and CEO Jeffrey DeBoer. “The economic damage to commercial real estate has been particularly harmful for the retail and lodging sectors of the industry.”
CRE executives expect an improvement in market conditions by next year, dependent upon the return of jobs and the ability to safely reopen businesses. Conversely, DeBoer said, “there are significant concerns that other sectors of the industry could be dragged down if jobs don’t rebound and government assistance tapers off.”
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