For all types of investors, October 17, 1987 is a day that will live in infamy. “Black Monday,” as it’s more commonly referred to, was a day when stock markets across the world crashed. The Dow Jones Industrial Average dropped by 22 percent. The real estate market crashed as well, but not as a direct result of the DJIA drop. Rather, the CBRE said it was due to a mistaken policy response (i.e. an overreaction) to the news of the drop.
As a commercial real estate professional, are you guilty of the same thing when it comes to news and current events? The top CRE pros have their ear to the ground, of course, and stay privy to current events and trends. That’s smart. However, to what degree does this make them reactive instead of proactive, if any? And what are some drawbacks of being over reactive to current events? Let’s find out.