Coronavirus Outbreak Special Report
Interest Rates Hit All-Time Low as Spread of Coronavirus Sparks Flight to Safety; Stability and Yield of Real Estate Reiterated by Stock Market Volatility
Stock market volatility showcases real estate stability and yields. While the stock market was particularly robust last year, with the S&P 500 delivering total returns exceeding 25 percent, equities recorded a major correction that erased a significant portion of the gains. In the ensuing flight to safety, long-term Treasury rates dropped to a record low, offering real estate investors an exceptionally low cost of capital and some of the highest levered returns in 30 years. Strong capital market liquidity and sound underlying real estate space demand remain pillars of support for commercial real estate.