The commercial real estate (CRE) market continues to cope with the impacts of the COVID-19 crisis. With lockdowns broadly being relaxed across the United States, the economy improved at a quicker pace during the third quarter 2020 than most people expected. However, while the most acute stress has likely passed, significant uncertainty remains around the economic recovery. The pandemic has driven a wedge between fundamentals for different property types and geographies, and although activity in the CRE market has declined, current dynamics differ considerably from what transpired during the global financial crisis (GFC), wrote Matt Malone, managing director at FS Investments, in the report entitled, “Separating the signal from the noise.”
The primary theme of the COVID-19 crisis continues to be the massive dispersion among CRE property types. Industrial properties and suburban apartments have seen fundamentals hold steady, and in some cases strengthen, while malls and hot
