Experts have said that changes to the way companies do business post-coronavirus could have lasting impacts on the commercial real estate market. “[The] office [market] is going to change big time, and nobody really knows what it is going to look like,” said Mac Morse, an advisor with Citadel Partners, a commercial real estate advisory firm. Companies that formerly viewed working from home as the antithesis to productivity are now questioning whether it is worth spending thousands of dollars a month on rent, Morse said. “This could 100% lead to fewer office leases in the future,” he said. Nine of the commercial transactions Morse was handling prior to the pandemic have fallen through. Another five are on hold for the foreseeable future, but Morse said there is a good chance those could be off the table as well. Click to read more at www.communityimpact.com.

It hasn’t taken long for the COVID-19 pandemic to impact landlords, according to the latest research from the National Multifamily Housing Council. The housing council’s latest survey of 241 chief executive officers and other senior executives of apartment-related firms, found that the multifamily market has already taken a significant hit as the country grapples with stay-at-home orders and a rising death toll from COVID-19. The council conducted its survey from April 13 to 20. A total of 90 percent of respondents reported lower multifamily sales volume than they did three months earlier. Only 5 percent of respondents said that sales volume was unchanged, while 1 percent said sales volume had increased. This isn’t surprising. As Mark Obrinsky, chief economist with the National Multifamily Housing Council, said, there really was no other way for the market to trend once the COVID-19 pandemic hit. “Residents across the country are currently under directives to stay at home and practice social distancing to contain the spread of COVID-19,” Obrinsky said. “As a result, much of the nation’s economic activity has been put on hold.” In more gloomy news, 75 percent of respondents reported that equity financing was less available than it was three months ago. No respondents said that this financing was easier to get. A total of 15 percent of respondents said that conditions were unchanged in the equity market. Click to read more at www.rejournals.com.

CBRE Research found that 16 of the top 20 markets for under-construction space—accounting for 70% of total under-construction inventory nationally—have workers active and on site, with most of these projects deemed “essential.” Pennsylvania’s I-78/81 Corridor, Philadelphia, Central New Jersey and Oakland are the only markets that have shut down construction sites, although in New Jersey and Pennsylvania waivers can be granted if the construction is for buildings that will distribute essential product. OVID-19 impacts have reduced leasing activity for the record 309 million sq. ft. of industrial space that was under construction at year-end 2019. Prior to the outbreak, there were minimal fears of vacancy rate increases because of robust demand for first-generation space. More than a third of this new construction was already committed by occupiers at year’s end. However, occupiers now are taking a wait-and-see approach or are unable to tour sites because of travel restrictions and social distancing policies. Click to read more at www.cbre.us.

LOS ANGELES, April 14, 2020 /PRNewswire/ — A husband and wife who have built their net worth using multifamily properties have accessed the Kay Properties 1031 DST marketplace at www.kpi1031.com to complete a tax deferred 1031 exchange into multiple DST 1031 properties. The Delaware Statutory Trust 1031 exchange investments were completed by Kay Properties and Investments team members Chay Lapin, Senior Vice President, and Steve Haskell, Vice President. Dwight Kay, the founder and CEO of Kay Properties, stated, “We are honored to have helped another family complete their 1031 exchange into DST investments. Again, the clients chose the Kay Properties team and the www.kpi1031.com marketplace for expertise and access to over 25 different DST sponsors and between 20-40 DST 1031 offerings.” Kay continued, “These clients were from the Pacific Northwest and they decided after extensive research that the Kay team and kpi1031.com marketplace best suited their needs as they were searching for a 1031 exchange solution. We are thankful to the clients as well as the five DST sponsor companies that we worked closely with on this transaction.” Click to read more at www.finance.yahoo.com.

On April 7, 2020, RE Journals hosted a webinar featuring renowned real estate economist, Dr. Mark Dotzour. An astonishing number of CRE professionals tuned in—nearly 4,000—to hear Dr. Dotzour’s insights on the impact that COVID-19 will have on the economy and the real estate industry.
What does this COVID-19 economic situation resemble?
According to Dr. Dotzour, the current situation resembles a combination of 9/11, the 2008 housing crash and World War II. This event is like 9/11 in that it came out of nowhere and there is a general fear of the unknown. However, unlike 9/11, this catastrophe is occurring in every city on earth right now. The 2008 recession had financial tremors and just last week, financial markets were shaking strongly. The Federal Reserve has tools to deploy right now. Just as during WWII, we need to mobilize the country, such as to procure and distribute medical supplies.
What will the recovery look like?
We were within two years of a recession before COVID-19 and some companies were struggling. With the onset of this, some companies are using this as basis to cut jobs. Dr. Dotzour anticipates a slow, jobless recovery. Segments that will particularly face challenges include the hotel, tourism, movie theater, oil and gas industries.
Click to read more at www.rejournals.com.