PODCAST: How to value assets during covid-19

Two valuation management firms share their strategies for assessing a property’s worth during a time of massive dislocation and uncertainty.

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The covid-19 crisis has made it difficult for many private real estate professionals to do their jobs, and the industry’s valuers are no exception. Although valuation management firms and appraisers have access to data on the cashflows of properties, they are missing a major part of the valuation equation – pricing data – as overall investment activity in private real estate has dropped precipitously during the pandemic. This has compelled valuers to turn to other methods to gather market information on how property values may have changed as a result of the crisis.

In this latest installment of Spotlight, we talk to John Kjelstrom, head of the valuation practice at financial risk management firm Chatham Financial, and Richard Kalvoda, head of the advisory practice at Altus Group. They explain the strategies they have developed for gathering market information in the absence of transaction data, as well as their key takeaways from second-quarter valuations.

For more on this topic, look out for our September Deep Dive, “The covid-19 reporting challenge,” out September 1.