New Report Highlights Impact of COVID-19 on U.S. Commercial Real Estate

Pandemic Aftermath: GCD Data Reveals Decline in US Real Estate Recovery Rates

July 19, 2024 – GCD today announces the release of the "US Real Estate Recovery Rates Report - Sectoral Comparison of COVID-19 Compared to GFC." This comprehensive report examines the recovery rates of the U.S. commercial real estate sector in the wake of the COVID-19 pandemic, providing critical insights into how the sector has been affected compared to the Global Financial Crisis (GFC).

Key findings from the report indicate a decline in recovery rates for defaults during the COVID-19 period, starting in 2020. Overall, the recovery rate for the full period observed is 78%, influenced by defaults during the GFC years.

The office sector has been particularly impacted, with recovery rates dropping below those seen during the GFC. The pandemic-induced shift to remote work has reduced demand for traditional office spaces, leaving many properties vacant and struggling to recover their value.

In contrast, the residential real estate sector has shown resilience, with no significant COVID-19 impact observed.

For more information and to access the full report, please visit here