COVID-19 Trends of the Week: June 29-July 3

Confidence is climbing. More help for housing. Why industrial landlords stand apart. These are the trends that shaped coronavirus coverage this week.

The U.S. economy added 4.8 million positions in June, pushing down the unemployment rate from 13.3 percent to 11 percent. Gains were made across the economy, with only manufacturing shedding more jobs than it added. Could this be the start of a comeback? It could be, but gains were weighted in coastal cities and it is a far cry from pre-pandemic job figures.

  1. Despite recent shocks, real estate execs remain confident.

Many commercial real estate executives are convinced that the coronavirus-related effects on the market are temporary. A weakened economy and an erratic stock market aside, they believe real estate fundamentals, particularly in multifamily and industrial, are still strong and that values won’t drop like they did following the financial crisis or stay down for as long.   

Public vs. Private CRE: The Price vs. Value Debate
Commercial Property Executive

CRE Executives See Glimmers Emerging from Tough Times: RCLCO Report
Commercial Property Executive

Sunday Summary: The Billion Dollar Deal is Back!
Commercial Observer

Multifamily Remains Strong Amid Health And Economic Uncertainty

2. Why industrial landlords sleep the soundest.

While the office, retail, hotel and multi-family markets are experiencing a significant slowdown in deal volume, warehouse and distribution real estate is humming along with new development announcements, investment deals and leases. The reason is pretty obvious: E-commerce is booming during the pandemic and its future is glowingly bright.

NAIOP: Industrial Real Estate Leading the Way Out of COVID Crisis

KKR’s $260M Portfolio Expansion
Commercial Property Executive

Industrial Real Estate Sees Promising Future As Sector Benefits from E-Commerce During Pandemic
D Magazine

3. Lawmakers working to prevent housing crisis.

The slight improvement in employment figures aside, rent instability is expected to continue for some time. Some relief programs were extended and expanded this week in recognition of the severity of coronavirus’ impact and others were introduced. Most are targeted to help renters, but FHFA extended forbearance for relief for Fannie Mae and Freddie Mac borrowers while maintaining a ban on evictions.

The Coming Wave of Coronavirus Evictions Will Wipe Out Black Renters

Freddie Mac Augments Multifamily Forbearance Program
Multi-Housing News

House Passes Bill to Prevent Homelessness Crisis ‘Like We’ve Never Seen in our Lifetimes’