Deryl Deese, one of Tauro’s Capital Advisors, analyzes how both the financial crisis and COVID-19 pandemic affected commercial real estate. During Q1 of 2007, every sector was tremendously impacted by the financial crisis. The hospitality sector was struck the hardest. The thin silver living was that everyone was bullish on commercial real estate although the cost of credit was higher than it is now. This made it easier to get financing as it was driven by the subprime market, and eventually buyers lost everything due to the crash that followed. As we’re entering year two of the pandemic, we have a clear vision of who the losers and winners are. The losers being hospitality at a 10% drop and office at a 4% drop (as of Q1). Retail became major winners as grocery and drug stores avoided losses, and warehouse space is needed for e-commerce which has surged since 2009.