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MOG & Mr. Kambiz Merabi’s outlook on Coronavirus that Raises Uncertainty & How Will It Impact The Commercial Real Estate 3/13/2020

MOG & Mr. Kambiz Merabi’s outlook on Coronavirus that Raises Uncertainty & How Will It Impact The Commercial Real Estate 3/13/2020

 

MOG’s research team in LA  met with Mr. Kambiz Merabi to discuss  the effect of Coronavirus on his Commercial Real Estate business, this past Friday March 13th, 2020

“Mr. Merabi started the meeting with this quote to his LA research team:

“The Mass stock market sell-offs generate a load of proceeds that must be invested, and the CRE is the safest industry to park the money & get a great returns.”

 

Their report sheds light on the economic ripple effects in the U.S. from the spreading outbreak of COVID-19 and explores and impacts on the Commercial Real Estate sectors.

 

Mr. Merabi expressed and predicted that most impacts to be temporary, perhaps only lasting several months until the spread of the virus is contained, and test packages and test stations are formed around the US.

He indicated that implications for Real Estate report notes the U.S. economy is well-positioned to withstand shocks to the system from the coronavirus, or big natural disaster .The real estate supply and demand in most states are generally in balance and should support stable occupancy and a steady outlook. He added that because real estate is a long-term investment, it offers investors less volatility than most other investments which its outlook are uncertain.

Mr. Merabi said that in his past experiences on any health outbreak in the US, it had generated short-term market instability that stabilized within three to six months.
The research team reported to him that commercial real estate investment activity remains vibrant and they expect the steep decline in interest rates will support refinancing and acquisitions of assets. While this report states many lenders have been able to lock in debt in the 3 percent ranges, it indicates, “the reduced cost of capital has not translated to higher property valuations or lower cap rates as many sellers hoped because the new coronavirus does create additional uncertainty for many investors.”

 

To contact about this story and report:  Contact Gibran Escobar at MOG LA Office gibranescobar@merabiandsons.com , To contact the editor responsible for this story: Kambiz Merabi  at MOG contact his assistant  Fidel Hernandez, or call our LA Office at 818-817-0006

 

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Mr. Kambiz Merabi

This Article/s Published March 13, 2020 LA,  has been Updated & posted at 2:01 PM PCT, March 14, 2020.

 

 

 

 

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