COVID-19 Trends of the Week: June 15-19

Multifamily still tops. Suburbs get a second look. Are Opportunity Zones making the grade? These are the trends that shaped coronavirus coverage this week.

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.   

Is New Survey a Sign that Multifamily Market Might Soon Face Greater COVID-19 Challenges? 
REJournals

Banks Shaking Off Lending Cobwebs, Starting With Multifamily 
Bisnow

Multifamily Rentals Continue Slide in May
GlobeSt.com

2. The suburbs are looking more attractive than they used to.

Microsoft building in Redmond, Wa. Photo via Wikipedia

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?

Americans Are Eyeing Homes in the Suburbs as Pent-up Demand Hits Housing Market 
MarketWatch

Suburbs are new hot spots for Miami office. Large tech firms are coming too Miami Herald

Urban Living Might Just Survive Coronavirus 
CityLab

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 
Data Center Knowledge

Austin Office Project Lands $27M Construction Loan 
Commercial Property Executive