Will a Wave of Distressed Assets Hit the Market?

February 2021

 
 

+ Watch on Marcus & Millichap

Some investors are patiently waiting for a wave of distressed assets, but several factors may leave investors disappointed by the level of discounting that actually occurs. Those waiting to scoop up bargain properties may be missing out on existing opportunities. Conversely, investors can capitalize on low interest rates to add assets that align with long-term strategies.

Video Highlights

Unlike 2008/2009, the banking system remains liquid and acquisition financing is generally still available

Billions of dollars waiting on the sidelines creates a more competitive bidding environment

Delinquencies are not widespread and are currently heavily concentrated in the retail and hotel sectors

The ongoing vaccine rollout strengthens the recovery outlook, giving investors a light at the end of the tunnel