Impacts of Economic Shocks on Major Metropolitan Markets
The rapid spread of COVID-19, and the public health measures taken to reduce its deadly impacts, have caused significant disruptions to global economic markets. Due to widespread business closures in America’s largest urban markets, and uncertainty over the duration and recovery of the pandemic, commercial real estate markets will face challenges in the coming years.
While the modern global economy has seen its share of turbulent cycles, the speed and scope of COVID-19 make it unique. Though there is no perfect historical comparison for a worldwide pandemic of this magnitude, other periods of economic contraction can serve as examples of how real estate markets react to economic disruptions.