The business closures and social distancing designed to slow the spread of COVID-19 did not take affect until the final few weeks of the first quarter, but they had a significant impact on demand for commercial real estate, vacancies and rent growth across the major property sectors.
Newly-released data from CoStar show that net absorption of apartments was 65,000 units in the first quarter, the weakest start to a year since 2014 (chart 1 shows four-quarter sums due to seasonal patterns in demand, in dark blue bars. Completions, or new supply, are shown with the sign reversed in the light blue bars). There has been a high level of construction of new apartments, which leaves this sector particularly exposed to slowing demand.
Read more...COVID-19 Shutdowns Impacted CRE Markets Right Away via Nareit