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RCA’s Costello Sees Winners Among COVID Era Sellers
The pandemic and resulting downturn haven’t yet brought about the double-digit declines in commercial property pricing that some investors anticipated and, with many of the highest-quality assets, these declines won’t be occurring.
That’s according to Jim Costello at Real Capital Analytics, who notes a wide spread in pricing performance among asset classes in RCA’s latest CPPI.
“Presumably, any deal closed in this period involved both buyers and sellers incorporating their views on what happens next with the pandemic into their pricing,” Costello writes in a new blog posting. In looking at the distribution of price gains across sectors, “it is clear that many sellers in this COVID era have been winners.”
Contrary to some expectations, “The economic disruptions from COVID-19 have not translated through to distressed asset sales in many cases, as current owners are not forced to sell as they were in the middle of the Global Financial Crisis.”
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- ◦Sale/Acquisition
- ◦Sale/Acquisition
