COVID-19 Trends of the Week: May 18-22
- May 22, 2020
Economists and commercial real estate prognosticators are spending a lot of time talking about the shape of the economic and real estate recovery. Will it resemble a V (quick down and up), a U (prolonged slump and a fairly swift comeback) or a W (fits and starts)? The stock market may be pricing in a V-shape, but the turning point is not yet in sight for other key indicators.
Second quarter will be tough, but recovery is next, hopefully.
With transaction volume falling dramatically in April, the second quarter of 2020 is expected to be a full quarter of pain for the economy and commercial real estate. But, there is a growing consensus that a U-shaped recovery will begin in the third or fourth quarter, followed by moderate growth in 2021 and stronger growth in 2022. Recovery will be accelerated by all the dry powder that is still eager to invest in the asset class once the bottom is more clear.
ULI Forecasts Strong CRE Growth to Return in 2022
Commercial Property Executive
Multifamily rent collections continue to defy employment statistics.
Despite an unemployment rate of nearly 15 percent, most renters are meeting their monthly obligations. According to the National Multifamily Housing Council, 88 percent of the renters that they track paid May rent by the second week of the month. One reason for that is the extra $600 those collecting unemployment benefits will receive through the end of July. And if Democrats have their way, that boost would be extended in the next stimulus package.
Why Multifamily Rents are Holding Up Better than Expected
National Real Estate Investor
Nearly 88 Percent of Renters Have Paid Rent This Month
Outdoor dining could give struggling restaurants a lifeline.
New York City, San Jose and Cincinnati are among the cities that are looking to give restaurant tenants more access to sidewalks and streets so they can host guests outdoors. Al fresco dining is considered safer than indoor eating these days if tables are kept at least six feet apart. With summer about to kick off, however, many states are still limiting eateries to takeout service. Chicago’s outdoor restaurants, for example, will begin operating in the third phase of reopening, which begins May 29. New York City restaurants will also allow restaurant service in phase three, but there is no date for that yet.
What Will Happen to Boston Offices If We All Work from Home Forever?
City Mulls Plan to Give Restaurants More Street Space
Real Estate Weekly