Real estate investors prepare for distress, but opportunities lag

keep distance

The dispute between buyers and sellers is likely to remain a problem for the time being, says Ridgewell. Much depends on the pricing.

“That has to be resolved first before we can see any significant market move and then really label deals as distressed or discounted,” he says.

There are signs in the US that for now, rather than shaking it, the right way to work it out is to work it out. In the first quarter of 2021, according to Real Capital Analytics, the level of developed emergencies in commercial real estate exceeded the level of newly emerged emergencies.

While the pandemic has resulted in investors focusing on core investments due to stability of earnings, investors in the US are currently taking a barbell approach of balancing core strategies with opportunistic or distressed strategies. The aim is to capitalize on transfers.