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The coronavirus outbreak that started in China has spread to as many as 50 countries, sparking fears of a global pandemic. Equity markets across the globe have sold off as they appear to be acknowledging the severity of the outbreak, which has already infected roughly 10 times more people than SARS did 17 years ago.1 A global pandemic, of course, would impact every corner of financial markets, though certain sectors are better equipped to handle a global recession than others.

In this note we look at potential impacts of COVID-19 on the CRE market, how much stress properties are equipped to handle, and which property types are most exposed.

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1 Centers for Disease Control and Prevention.

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