COVID-19 Trends of the Week: Aug. 31-Sept. 4

On Thursday, the Dow and Nasdaq had their worst days since June. Tech stocks faltered as well. The public market may be getting the message that the private market received a while ago: the economy is definitely in recession.

1. CDC holds off evictions, while owners still must pay expenses.

As the pandemic rages on, the Centers for Disease Control issued a national moratorium on evictions this week that will stay in place until Dec. 31, 2020. That’s good news for residents (those making more than $99,000 per year are excluded), but owners still have to pay their mortgages, utilities and other bills. While Congress stalls a decision on the next relief package that could help residents and property owners, President Trump last month signed an executive order for $300 a week in additional unemployment benefits, but those funds have yet to reach recipients.

Eviction Wave Still at Sea: Will It Make Land?
Commercial Property Executive

Trump Administration Orders Nationwide Eviction Ban
Multi-Housing News

Trump’s Eviction Moratorium Is Only a Stopgap Measure
Slate

What the New Federal Eviction Moratorium Means
CityLab

2. STNL deals increase in flight to quality, safety.

There has been significant transaction activity in the single-tenant net lease transactions as investors seek shelter in better-performing assets leased to high-credit tenants. Net lease transactions accounted for 20 percent of all investment activity in the second quarter, Commercial Observer reported. Not surprisingly, nearly half of that activity was in industrial.

Why More 1031 Exchange Buyers Are Seeking an Upleg
Commercial Property Executive

Net-Lease Investment Gobbles Bigger Share of U.S. Commercial R.E. Market
Commercial Observer

CIM Real Estate Finance to Merge With Three Net Lease REITs in $5.9B Deal
GlobeSt.

3. Flexible owners mull conversions for highest and best uses.

As many office, hotel and retail property owners face temporary and perhaps permanent vacancy due to COVID-19, there is a lot of talk about conversions or repositionings. A well-located retail center, for example, may have a more profitable life as an apartment property or an office building. In fact, if current economic and health conditions persist, experts are predicting a broad transformation of the real estate landscape.

Repositioning Commercial Buildings Into Life Science Facilities: Q&A
Commercial Property Executive

In Coming Wave of Pandemic-Induced Vacancies, Some See Opportunity
New York Times

Strategic Conversion of Vacant Commercial Space is a Win for Affordable Housing
PhillyVoice