Weekly Metrics
| 2020 | 2019 | |
| Rent Payments Collected by April 27th | 91.7% | 95.9% |
| Rent Payments Collected by May 27th | 93.3% | 94.8% |
| Current | Prior Week Change | |
| 10 Year Treasury | 0.667% | +0.010% |
| DOW | 25,400.64 | +926.52 |
| S&P 500 | 3,029.73 | +81.22 |
| Unemployment Rate | 14.7% | — |
| Total US COVID-19 Cases | 1,724k | +146k |
| Total US COVID-19 Tests | 15,190k | +2,960k |
RealCrowd’s Thoughts
What’s Happening Now
It appears that we’re entering into another interesting phase of the crisis in the coming weeks with talks of another possible round of stimulus, some states/cities/businesses partially opening back up and the markets having seen a pretty strong run to put the DOW back over 25,000, all while jobless claims have climbed over 40 million and more than 100,000 people have died from the virus in the US.
Take a second to read that paragraph again. There’s a lot of conflicting information in those sentences, yet, that’s where we find ourselves.
Expand that to the real estate world where you’ll read in our selection of articles this week that lenders are being far more conservative in their underwriting, requiring larger cash reserves, lower loan to value ratios and generally are in a risk-off mode. Contrast that with an extraordinary amount of capital being raised to take advantage of what many believe to be a risk-on distressed buying opportunity in the coming months/quarters.
Something to watch
The theme of these competing factors seems to persist in many facets of the current state of affairs, and until we gain confidence around the health side of this crisis, we anticipate the uncertainty will also persist. What we do know though, is we still believe in the fundamentals of real estate as a wealth creation strategy, and we don’t believe this crisis will change that over the long term.
Stay healthy out there, try to send somebody you haven’t talked with in too long a note of gratitude, and remember that the only way we’re getting out of this is together!
-Adam Hooper, CEO
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Key Articles To Read This Week
Survey: U.S. Commercial Real Estate Sector Expected to Be Resilient in Recovery
U.S. real estate economists are predicting some light at the end of the tunnel.
Tech giants are embracing remote work. Others may follow
Silicon Valley and Seattle giants — Facebook, Microsoft, Apple, Twitter — were the first to send their employees home as the virus spread to the U.S. Now they’re among the last to return them to the office.
Borrowers Pony Up More Cash Reserves to Move Loans Forward
Some underwriting standards across the board have being tightened up as lenders begin to finance deals again.
A J.C. Penney REIT Is an ‘Odd Value Proposition’ in Today’s Climate. But its Stores Could Attract a Wealthy Buyer
Given unraveling retail rents, a J.C. Penney REIT might be a tough sell in this environment. But the chain’s stores might become a goldmine for Amazon.
Apple will open about 100 more stores in the U.S. this week, with focus on curbside service
When the stores re-open, about 130 Apple stores will be operational in the United States.
Bank of America Staff Will Return to Office in Phases With 30 Days’ Notice
“We will move slowly and carefully, driven by business need, with safety as our highest priority,” the bank said in the memo.
Coronavirus Layoffs: Boeing Lays Off 6,770 Workers Amid Pandemic
As the coronavirus pandemic keeps Americans confined to their homes, nearly every industry has been negatively impacted by the disease, and businesses losing out on cash flow have started laying off workers.
Forget About Recessionary Real Estate Bargains: Home Prices Are Still Rising
Those hoping the coronavirus-fueled recession will bring another round of bargain-basement real estate prices are likely out of luck.
Distressed Real Estate Market Beckons Opportunistic Buyers
Investment firms are sitting on “a staggering amount of dry powder” as they wait for big property discounts brought on by the pandemic.
The rise of virtual offices will change commercial real estate
Where We Go From Here
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