Although we've started to dread economic forecasts, we were eager to learn yesterday from Real Estate Economics chief economist Sam Chandan and Real Capital Analytics founder Bob White, who spoke to a joint Counselors of Real Estate/Appraisal Institute breakfast at Club 101 on Park Avenue.
Mr. White tells us that US transactions are down 75% by value, and $100-million-plus mega-deals only account for 8% of the total. All property types are feeling the shock, and the rest of the world is in the same boat. Investors are staying in the US with all the distressed opportunities—as of this week, there are $87 billion worth of potentially troubled assets, $23 billion troubled, and $5.4 billion that are already lender-owned. Unlike the 1980s and '90s, these are quality assets with good owners, he says.