WASHINGTON (November 19, 2020) – Commercial property values have changed in the last six months due to the pandemic and real estate is currently in unchartered territory. That is according to the president of commercial real estate brokerage NAI Pleasant Valley, Alec Pacella, who spoke Wednesday at the 2020 REALTORS® Conference & Expo.
Pacella, who hosted a session titled, “Selling CRE Properties: How COVID-19 Impacts the Numbers,” summarized the recent history of the commercial real estate industry, including its pricing index, value peaks and buyer expectations.
“We’ve had a great run over the last six or seven years,” Pacella said of commercial real estate investment.
“In the early part of last decade – 2006, 2007, 2008 – expectations were actually greater than the pricing index. There was more demand than there was supply.”
But in 2009 and 2010, as Pacella notes, expectations were lower than the pricing index. As a result, investments in commercial real estate were nearly nonexistent.
“No deals were happening then,” he said. “You couldn’t give real estate away in a lot of markets because the expectations were so low.”
The scenario Pacella describes is not unlike the current state of commercial real estate, as many landlords of
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