“If we think about real estate as an asset class its value isn’t entirely determined by short term rent rolls,” said Tim Savage, Clinical Assistant Professor of Real Estate at NYU Schack Institute of Real Estate. “In the short run, we will see perceived values fall but this is a natural disaster, not a financial crisis. This hasn’t affected the capital, it has just affected the human capital. The volatility and pause in transactions that we are seeing is just a reflection of uncertainty. In the absence of data, all we have is uncertainty.” These are strange times for all sectors and real estate is no different. The coronavirus outbreak, subsequent lockdowns, and the looming recession have created an unprecedented disruption to the business of commercial real estate. All the more surreal as we ponder the volatile future of our empty commercial buildings under confinement in our homes. In the absence of data, all we […]