Better pricing. But since OZ is a long term hold, it won't be impacted as much.
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How will the falling commercial real estate prices due to Covid-19 impact the OZ industry?
How can we expect this trend to impact the market?
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It could make the acquisition of real estate in OZs easier, and it could make compliance easier by lowering the substantial improvement requirement. It could also lead to stress for current OZ investors because the QOFs and QOZBs owning property in the areas with the falling value might see pressure to redeem certain investors or liquidate entirely. I have already seen clients who are LPs in QOFs ask me about ways to exit deals in which they no longer have confidence after the pandemic struck.
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