COVID-19 Trends of the Week: Aug. 10-14
- Aug 14, 2020
New unemployment claims fell under 1 million for the first time since March. Continuing claims also dipped under 16 million for the first time.
1. President Trump issues executive order in an attempt to stave off evictions.
As negotiations on new coronavirus relief measures continue to stall in Congress, last Saturday President Trump issued an executive order that would protect renters from eviction. Experts immediately noted the lack of an implementation plan nor an extension of the national eviction moratorium that expired on July 24th. Also this week, HUD announced it would provide $472 million of CARES package money to public housing authorities through the Section 8 Housing Choice Voucher and Mainstream voucher programs.
HUD Unveils $472M for Coronavirus Relief
2. In office space, the one certainty is flexibility.
The desire to give office employees greater flexibility (BP is the latest big employer contemplating major space reductions partly in the name of it) is great news for flexible office providers and traditional office property owners that want to get into the business. But these are challenging times for everyone. A survey released last week noted that flex office providers are contending with rent reduction requests and contract termination as a result of the pandemic. Generally speaking, the outlook is positive.
3. More worries for the CMBS market.
The lack of additional governmental relief efforts and talk of a second shutdown has borrowers and lenders even more concerned about CMBS loan repayments. Meanwhile, a controversial report released this week found that underwriting on “thousands” of loans sold into CMBS overstated income projections and, as a result, owners’ ability to repay loans.
Assessing the Trouble Ahead for Commercial Mortgages
National Mortgage News