The COVID-19 pandemic has caused a global health crisis since it was first seen in China late last year. Across the globe, governments and private companies are racing to find a cure for a virus that has killed hundreds of thousands of people. Safety measures put in place by local and national governments looking to slow the spread have in turn caused adverse effects on many industries. Economic activity has in many ways come to a halt due to these responses and a global recession has begun.
While it is too soon to offer definitive answers to how the COVID-19 crisis will impact the Boston real estate market, it is clear that there are uncertainties ahead. Industries like hotels and retail are the hardest-hit sectors so far. Recent job loss reports have shown a steep increase in job losses, and CBRE and others are expecting a more than 30% contraction of U.S. GDP for the second quarter of 2020. During the second half of the year, we expect to see the market begin to recover with the assistance of the $2 trillion stimulus package signed by the federal government which should help revive consumer spending and point businesses toward a healthy footing.