I thought this was a good read.
How it plays out for tenants has yet to fully materialize. Depending on what city and in what submarket you operate, better pricing and better leverage is still coming. But construction costs are still sky high. The kind of reset that we saw in 2011 after 9/11 and after the financial market meltdown of 2008 has yet to make a substantial appearance. I consider the outfall of the pandemic as a slow motion decline and recovery, that I don’t think we have a reference point for.
You should think about engaging a tenant advocate like Forte Commercial Real Estate to plan for your upcoming lease renewals.
Commentary: The great reset of property prices is underway. Brace for more carnage.
The global financial crisis that began in 2007 reshaped the real estate market. Today, commercial real estate is facing a similar “Great Reset.” Property valuations are resetting, capital availability is restricted, and investment activity is curtailed.