It’s not the outright fear or negativity surrounding the COVID-19 outbreak that most concerns those in the commercial real estate (CRE) industry. Rather, it’s the uncertainty. That’s according to a market confidence survey polling those in the broker, appraisal, lending, investing and environmental consulting/engineering sectors on how they have been impacted by COVID-19 and the resulting recession. LightBox, a real estate technology firm, conducted the poll from mid-April through the end of the month. The survey indicates that the top three concerns for CRE professionals are the unknown duration of the pandemic, rising unemployment and the difficulty of accurately forecasting business activity. “There is no shortage of uncertainty about when sellers will be comfortable putting properties back on the selling block, when lenders will be less skittish about originations or when the impact of the pandemic on property values is clearer,” says Dianne Crocker, principal analyst with LightBox. “Ultimately, the effects on the commercial real estate market will vary by geography and asset class and will depend primarily on how quickly the health crisis is controlled and the duration of the economic shutdown.” Lenders, consultants, appraisers and others in the field fear the consequences of instability on their businesses long …
