CRE Investors Move Forward In The Face Of Uncertainty

To provide commercial real estate leaders with insight into how the global pandemic is affecting the market over time, we are fielding a monthly, anonymous survey of Juniper Square client organizations. The questions cover topics such as rent collections, lender workouts, fundraising and views on the impacts of COVID on our industry.

Between May 10-15, 2020, 54 senior decision-makers participated in this study. Most of the respondents were principals and CEOs representing a cross-section of regional and nationwide sponsors with a mix of property types. Here are 4 things we learned: 

Most sponsors plan to proceed with fundraising. 81% plan to proceed with fundraising this year, and more than half of respondents are successfully engaging with new investors. A large percentage indicated they are seeking capital for new distressed opportunities. 

Acquisitions still in progress are largely moving forward. Though respondents with acquisitions under contract dropped from 51% in April to 35% in May, those that are in active discussions are more likely to proceed (73% in May vs 51% in April). 

Fewer sponsors are seeking relief from creditors. 39% are in active discussions with creditors about relaxing loan covenants and other mitigation measures, down from 57% in April. A majority of mitigation discussions are focused on deferrals. 

Respondent concerns about the recession are less acute. Those who said they are “very concerned” dropped from 51% in April to 33% in May. However, they see the overall industry impact as greater now versus a month ago.

See the data and more information by downloading the survey summary here