How CRE Stocks Performed During The Worst Market Drop Since 1987's Black Monday
Commercial real estate stocks plunged Thursday as the coronavirus pandemic caused the market to experience its largest drop since the infamous Black Monday in 1987.
The Dow Jones closed Thursday down 2,352 points on the day, or nearly 10%. The S&P 500 dropped 9.5% and the Nasdaq Composite fell by 9.43%. Each index has dropped 20% since their previous high, putting them all firmly in bear market territory.
More than 1,400 cases of the coronavirus have now been confirmed in the U.S. across 45 states and D.C., The New York Times reported. At least 39 people have died from the virus in the U.S., and both numbers are expected to rise.
Wednesday and Thursday were filled with a near-constant barrage of major event closures, from professional sports leagues suspending seasons to the NCAA canceling March Madness, Broadway canceling shows for a full month and Disneyland shutting down. School systems have closed down across the country, companies have asked employees to work remotely and an untold number of trips have been canceled.
The shock waves of the pandemic are being felt throughout the world's economy, and the commercial real estate industry is no exception. A wide variety of commercial real estate companies are traded on the public markets, including REITs, brokerage firms, hoteliers and data companies.
The Nareit index of all REITs dropped by 9.42% Thursday, with the healthcare, lodging and regional mall sectors each falling more than 14%. Among the biggest commercial real estate losers were property giants Brookfield and Blackstone, which each fell more than 15%.
- Simon Property Group fell 17.7% to $83.49/share.
- Brookfield Property Partners dropped 16% to $12/share.
- MGM Resorts International fell 15.6% to $15.26/share.
- Blackstone Group declined 15.4% to $40.06/share.
- Cushman & Wakefield dropped 13.4% to $12.70/share.
- Cousins Properties decreased 13% to $27.11/share.
- JLL fell 12.3% to $122.26/share.
- Macerich fell 11.2% to $13.65/share.
- Newmark Group dropped 10.6% to $6.27/share.
- CBRE declined 10.4% to $44.53/share.
- Vornado Realty Trust fell 10.1% to $42.66/share.
- Duke Realty Corp. fell 9.6% to $27.44/share.
- Host Hotels & Resorts dropped 9% to $10.51/share.
- Boston Properties fell 7.8% to $111.89/share.
- AvalonBay Communities fell 7.1% to $181.98/share.
- Equity Residential declined 6.8% to $70.01/share.
- Marriott International fell 6.4% to $93.71/share.
- CoStar Group decreased 5.9% to $612.93/share.
- Equinix dropped 5.6% to $565.13/share.
- Hilton Worldwide Holdings dropped 5.39% to $76.72/share.
- Prologis decreased 4.8% to $70.18/share.
