A First Look at the Impact of COVID-19 on Commercial Real Estate Prices: Asset-Level Evidence

David Ling (), Chongyu Wang, Tingyu Zhou and Jeffrey Pontiff

The Review of Asset Pricing Studies, vol. 10, issue 4, 669-704

Abstract: This is the first paper to examine how the COVID-19 shock transmitted from the asset markets to capital markets. Using a novel measure of the exposure of commercial real estate (CRE) portfolios to the increase in the number of COVID-19 cases (GeoCOVID), we find a one-standard-deviation increase in GeoCOVID on day t-1 is associated with a 0.24 to 0.93 percentage points decrease in abnormal returns over 1- to 3-day windows. There is substantial variation across property types. Local and state policy interventions helped to moderate the negative return impact of GeoCOVID. However, there is little evidence that reopenings affected the performance of CRE markets.

JEL-codes: D80 G11 G14 I10 R10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:rasset:v:10:y::i:4:p:669-704.

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