Coronavirus Outbreak Special Report

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.