As 2020 has progressed, the COVID-19 pandemic has negatively impacted the whole spectrum of private real estate, in one way or another. Those sectors that have escaped relatively unscathed in terms of repricing, such as industrial and logistics, have seen a sharp fall in transaction activity throughout the year. Meanwhile, those assets that have repriced, such as retail and hotel assets, have been hit on both fronts. Despite these issues, the number and aggregate value of deals has bounced back slightly in Q3, which could be a promising sign of rising activity in Q4. What’s more, it’s likely that the current repricing phase will drive increased activity into Q4 and 2021, as investors will be reluctant to sit on the sidelines for too long.
Read our latest private real estate industry update for a detailed look at fundraising, funds in market, investors, deals, and performance & dry powder in the third quarter of the year.