Coronavirus Market Rout Hits CRE Pricing
As the markets tumble, prices that were quoted just a couple of weeks ago are no longer applicable.
March 2, 2020 | Les Shaver | GlobeSt.com
The Coronavirus-inspired stock market turbulence is making it harder to price commercial real estate deals, according to Matt Ruark, head of commercial and healthcare mortgage production for KeyBank Real Estate Capital.
Last week, Ruark was taking daily calls about pricing as the stock market fell.
“There is a lack of clarity as to the severity and what’s going on with the Coronavirus and what it means to the economy,” Ruark says. “You’ve seen the 10-year Treasury have a dramatic drop in the last week. You’ve seen spreads that are blowing out.”
