Investors predict commercial real estate assets will fall by up to 10 percent or more in value

Nearly four in 10 investors (39 percent) expect commercial real estate assets will fall between 5 percent to 10 percent in value in 2020, while nearly a third (31 percent) predict a fall of 10 percent or more as a result of the pandemic, according to Duff & Phelps in its survey.

The survey polled senior directors and investors in real estate from the United States, United Kingdom and Europe, looking to gain insights into how different subsectors across the commercial real estate industry are adjusting as a result of the pandemic and to examine the potential shifts in real estate financing.

It is no surprise that respondents expected the worst long-term damage in commercial real estate to be among retail and hotels (accounting for 37 percent and 36 percent responses, respectively), with most investors expecting retail property values to decrease between 10 perce