The recovery from the coronavirus sure looks V-shaped, going by these charts

The U.S. economy added a record number of jobs in May as it appeared to bounce off the bottom of the coronavirus recession, and now the chart of jobs gains and losses is starting to look like a “V.”

The possibility of a V-shaped recovery — a sharp fall in economic activity followed by a dramatic rise — has been a hot topic of debate since the coronavirus pandemic led to widespread business closures across the United States. The shape of the economic recovery is a popular guessing game on Wall Street with economists and pundits suggesting everything from a “V” to a “W” to even a Nike Swoosh as businesses were slower to get back to normal.

The better-than-expected jobs report follows a series of other recent data points that have shown a quick recovery from their pandemic-era lows and point to a V shape.

Mobility data from Apple showed that requests in directions for driving and walking had nearly recovered to pre-pandemic levels by June 1. The increase in travel demand has extended to flying as well, with major airlines announcing this week that they are bringing back some of the flights that they had suspended due to the pandemic.

Click Here For The Full Article

    SUBSCRIBE TO OUR NEWSLETTER

    Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


    Picture: Pixabay

    Seven CRE Economists Offer Their Advice and Predictions for the Sector

    While there are still a lot of unknowns about how the pandemic will play out, we talked to seven commercial real estate economists about their views on the future of the industry.
    As we move into the summer months, there are still a lot of unknowns around how the COVID-19 pandemic will play out, including how much worse the first wave of infections is going to get, whether there will be a second wave in the fall and how soon we might expect some type of vaccine or effective treatment. But with the full understanding that predictions about the future are not an exact science, especially in times of crisis, we asked seven commercial real estate executives with backgrounds in research and economics to offer their outlooks on what the current situation might mean for real estate investors.

    In the following slides, they share their predictions and advice for commercial real estate insiders.

    Click Here For The Full Article

      SUBSCRIBE TO OUR NEWSLETTER

      Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


      Picture: Pixabay

      After flocking downtown to woo millennials, offices might be moving back to the suburbs

      “Is office space going the way of retail in five years? That’s what investors are really trying to understand,” said James Farrar, CEO of real estate investment trust City Office REIT.

      It was 2016 when General Electric announced it was moving its global headquarters to a smaller space along the central Boston waterfront, away from the quiet suburbs of Fairfield, Connecticut.

      Then McDonald’s in 2018 opened its glitzy, new worldwide headquarters in Chicago’s vibrant Loop neighborhood, moving out of a suburban office park in Oak Brook, Illinois – joining Kraft Heinz, Walgreens and other Fortune 500 businesses in a seismic shift of corporate office space to downtown.

      And with each of these moves, there were perks: Millennial talent was more plentiful in these bustling districts such as the Loop in Chicago, where the nightlife and bar scene were also strong. Some companies, including GE, found tax breaks from municipalities when they positioned their offices downtown. And reliable public transit systems could seamlessly transport workers back and forth each week.

      But that was before the coronavirus pandemic hit.

      For weeks now, companies across the country have been adjusting to entire workforces working remotely. Many of these offices are sitting empty, if only to be frequented by janitorial staff and a skeleton crew of essential workers. Zoom video calls are replacing what would typically have been meetings in conference rooms filled with colleagues breaking bread. Recently, Jack Dorsey’s Twitter and Square tech companies both said employees can work from home “forever.” Google and Facebook, meantime, have told employees they can work from home until the end of this year. Many others are expected to follow suit.

      Click Here For The Full Article

        SUBSCRIBE TO OUR NEWSLETTER

        Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


        Picture: Pixabay

        Student Housing Owners Look Forward to the Fall Semester

        Despite some campuses announcing plans for fully online classes in the fall, demand for off campus student housing remains robust.

        When the new academic year begins in later this summer, with a few exceptions, most of the 482,000 students at the 23 campuses that comprise the California State University (CSU) system will be learning remotely. That’s the highest profile example in the current debate among universities as to how handle the fall semester.

        CSU Chancellor Timothy P. White’s announcement on May 12 sent shock waves through the student housing business, which so far has survived the crisis caused by the coronavirus without major loses.

        But overall, the CSU system seems to be an exception, with many other university systems announcing plans for the full or partial return of students. According to data compiled from 850 universities by the Chronicle of Higher Education, two-thirds of American universities have announced plans for students to return.

        “By and large, most schools appear to be on track to re-open for Fall 2020,” says Carl Whitaker, senior manager of market analytics for RealPage, Inc.

        Only 7 percent are planning online. Another 8 percent are proposing a hybrid model, 9 percent are waiting to decide and 10 percent are “considering a range of scenarios.”

        “Online instruction [in the spring] did not go super smoothly,” says Will Baker, senior managing director of Walker & Dunlop. “It has not been popular.”

        Click Here For The Full Article

          SUBSCRIBE TO OUR NEWSLETTER

          Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


          Picture: Pixabay

          Joe Biden has called for rent forgiveness during the coronavirus pandemic — here’s how that would work

          Progressive activists say mortgages and rent should be cancelled while the coronavirus pandemic slows the economy, but what would that mean for landlords?

          Former vice president Joe Biden has thrown his support behind canceling rent.

          During a recent appearance on the Snapchat SNAP, +0.93% show “Good Luck America,” the Democratic presidential candidate said he supported the idea, which has so far been promoted by progressive activists.

          “There should be rent forgiveness and there should be mortgage forgiveness now in the middle of this crisis,” Biden said during his appearance. “Not paid later, forgiveness. It’s critically important to people who are in the lower-income strata.”

          (Biden’s campaign did not return a request for comment.)

          Renters are feeling the adverse effects of the coronavirus pandemic and the resulting economic slowdown acutely.

          “The tenant is the most vulnerable person in the economy right now,” said Tara Raghuveer, housing campaign director at People’s Action, a political network devoted to grassroots organizing.

          The unique attributes of the coronavirus-fueled economic downturn have indeed hit renters harder than homeowners. Tens of millions of Americans have lost their jobs or been furloughed as businesses shut down to comply with stay-at-home orders.

          Overwhelmingly, those job losses occurred in the service sector, according to an analysis from title insurance company First American Financial Services FAF, -0.78%. A third of the jobs lost in April were in the leisure and hospitality sector — and most of those jobs were in food service, an industry that is more likely to employ younger workers with less education.

          Click Here For The Full Article

            SUBSCRIBE TO OUR NEWSLETTER

            Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


            Picture: Pixabay

            The LIHTC Market Weathers COVID-19 Pressures

            Despite taking some hits, experts expect the market for low-income housing tax credits and affordable housing properties to hold up in the face of COVID-19.

            Despite voracious renter demand for affordable and workforce housing, investors in that sector have not been immune from fallout from the COVID-19 economic crisis. Some have hit the pause button as they reevaluate strategies and market risk. However, data that shows that rent collections have not dropped as much as some had feared is giving investors greater confidence in buying both Low Income Housing Tax Credits (LIHTCs) and LIHTC-backed assets.

            The LIHTC market was in a very strong position at the start of 2020, and despite a slight pause and dip in pricing, many in the industry are optimistic that the sector is on course to regain some of its pre-COVID momentum. “As you would expect, the demand for affordable housing is incredibly strong. It was strong when we were at full employment in the economy, and you could say it is even stronger now,” says Beth Mullen, CPA, partner and affordable housing industry leader at CohnReznick, an accounting, tax and business advisory firm.

            Last year marked a record high amount of equity raised from tax credit investors. According to a CohnReznick survey as reported in its March 2020 Tax Credit Monitor, approximately $18.3 billion of investor equity was closed in housing tax credit funds/investments in 2019. That volume reflects a 10.5 percent increase of $1.7 billion over the 2018 volume. CohnReznick notes four key reasons for the increase in volume that include:

            Click Here For The Full Article

              SUBSCRIBE TO OUR NEWSLETTER

              Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


              Picture: Pixabay

              How Will the Popularity of Online Grocery Deliveries Play Out for the Cold Storage Sector?

              A surge in cold storage demand is expected to last. But exactly how it will play out is still an open question.

              COVID-19 is impacting life in many unexpected ways, but it’s been a boon for U.S. online grocery sales.

              “The interesting thing is COVID broke down the psychological barrier that had prevented many shoppers from buying groceries online, and in a post-COVID world this could transfer to cold storage demand,” notes Chicago-based Peter Kroner, research manager for industrial capital markets with real estate services firm JLL who recently helped his grandmother buy her groceries online for the first time.

              With consumers now comfortable having groceries delivered direct to consumer (D2C) or buying online, pickup in store (BOPIS), disruption of the U.S. food industry is expected to stick. Kroner notes that three major U.S. retail grocery chains have already announced plans to launch free delivery of online sales by year-end. In addition, a Brick Meets Click/Shopper Kit survey found that 46 percent of shoppers plan to continue purchasing goods online, including groceries, post-COVID-19.

              Click Here For The Full Article

                SUBSCRIBE TO OUR NEWSLETTER

                Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


                Picture: Pixabay

                E-Commerce Deliveries Are More Common Than Ever. How Can Apartment Managers Handle Them Safely and Efficiently?

                With a massively ramped up volume of online orders, handling package deliveries has become a priority for property managers.

                One of the biggest questions right now for urban multifamily property managers is how to deal with ramped-up package delivery while ensuring social distancing rules.

                Even before the pandemic, many apartment building managers were already experimenting with improving their package delivery processes. But the pandemic has accelerated the demand to find more efficient solutions for deliveries. For example, technology tools can help make it easier to practice social distancing at multifamily buildings, according to Robert Gaulden, director of multifamily channel strategy at Allegion U.S., a provider of security solutions. There are technologies that allow for access control on a particular room inside the building, meaning property managers have the ability to set schedules for when residents can enter the room and ensure they do not have more than a certain number of people in the space at any given time. This technology can apply not only to package delivery rooms, but also to other common areas of the building, says Gaulden.

                “Now, you also have to look at the design and say: ‘what do we want that flow to be, what do we want that experience to be, how do we manage this environment to be lower touch?’” Gaulden notes. “Do we put automatic operators in all the way from the exterior to the interior to make sure that the delivery people are not touching as many door handles for example, or entering into the package room? And there’s a question perhaps: does this help accelerate delivery [directly to residents’ units?]”

                Click Here For The Full Article

                  SUBSCRIBE TO OUR NEWSLETTER

                  Start receiving; press releases, commercial real estate news, information and trends on particular markets and regions.


                  Picture: Pixabay
                  Scroll to top
                  error: Content is protected !!