COVID-19 Trends of the Week: June 22-26

Will Fed rescue the CMBS Market? Ensuring residents are safe at home. The ruckus over retail rents. These are the trends that shaped coronavirus coverage this week.

This week, the economy showed slight improvement, including a higher than expected increase in home sales in May and slowing of the downturn in manufacturing. But new COVID-19 cases are spiking in a number of states and the specter of further lockdowns is looming. Here are the trends that shaped coronavirus coverage this week.   

  1. Will the Fed bolster the shaky CMBS Market?

This week, more than 100 members of the House of Representatives petitioned the Fed to support the CMBS market, which has been rocked by missed loan payments in the hotel and retail markets, as well as other sectors. Delinquencies for portfolio lenders is a bit better. But there were concerns expressed this week for the smaller banks and credit unions that became more active post-financial crisis and have a higher exposure to commercial real estate loans than larger institutions.

Politicians Want Government to Rescue CMBS Market
Propmodo

US Outlook: Potential CMBS Litigation Arising From the 2020 Downturn  
International Comparative Legal Guides

Credit Unions, Community Banks that Saved Commercial Real Estate Face Increased Risk 
Mortgage Professional America

 
2. Retailers and tenants struggle over unpaid rent.
 
COVID-19 is straining and redefining the relationship between retail landlords and tenants. Frustrated with the drop-off in revenues, more property owners are going to court to force tenants to make good. Others are meeting tenants where they live right now by offering extended deferments and lower rents at renewal. Flexibility, creativity and communication seem to be the new survival skills for both parties.  
 

With work-at-home and distance learning becoming long-term trends, multifamily designers, developers and operators are faced with the challenge of calming resident concerns, promoting wellness and managing density during the public health crisis and long term. Can a carefully designed indoor environment help us live longer?

Real Estate Organizations Collaborate on Best Practices for Buildings 
The Cooperator

Designers Unlock Value in Vintage Buildings 
Multi-Housing News

Could a Building Extend Your Lifespan? 
Marketplace.org