COVID-19 Trends of the Week: June 15-19
- Jun 19, 2020
The Federal Reserve this week launched its Main Street Lending program, which will provide up to $600 billion in funding to businesses that were on solid financial footing prior to the pandemic. That’s good news for commercial landlords hoping to collect rents and meet their loan obligations.
1. Despite some dents in the armor, multifamily still a lender favorite.
Multifamily rent collections were at almost 90 percent for the second week of June, while the national average rent fell again in May due to the coronavirus effect. But overall multifamily is still considered one of, if not the, most resilient of property types. While loan terms are getting more conservative, lenders continue to show their preference for the asset class.
Multifamily Rentals Continue Slide in May
2. The suburbs are looking more attractive than they used to.
Suburban office property brokers, flex office providers and residential real estate agents report an increase in inquiries due to corporate tenants and residents seeking an escape from urban density. If those inquiries become sealed deals, there would be at least a temporary reversal of the long-term trend toward urban environments. Will the need for open space be stronger than the need for community, collaboration and convenience?
3. New report casts doubt on Opportunity Zones as economic remedy.
Opportunity Zone investment saw a recent surge as some investors fled the stock market and the Internal Revenue Service extended the deadline. But a report released by the Urban Institute this week questions whether or not the program is succeeding at “equitable development,” a combination of economic development and community development. The program’s boosters have been waiting for some research on the efficacy of Opportunity Zones. But these are not the results they had hoped for.
Ohio’s Monroe County is Taking Advantage of Opportunity Zones to Attract Data Centers
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Austin Office Project Lands $27M Construction Loan
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