|Rent Payments Collected by April 6th||82.9%||78.0%|
|Rent Payments Collected by May 6th||81.7%||80.2%|
|Rent Payments Collected by June 6th||81.6%||80.8%|
|Current||Prior Week Change|
|10 Year Treasury||0.685%||-0.208%|
|Total US COVID-19 Cases||2,024k||+149k|
|Total US COVID-19 Tests||22,420k||+3,510k|
What’s Happening Now
As we’ve been watching and wondering over these last few weeks, it seems that the markets also questioned the reality behind the recent run up in equities. The Dow, S&P and Nasdaq were all down on Thursday, showing losses of roughly 6.9%, 5.9% and 5.3% respectively. The pullback is speculated to be a reaction to a spike in COVID-19 cases across the country as states begin to reopen from the lockdowns.
Since the beginning of June, 14 states and Puerto Rico have seen their highest ever weekly average of new cases since the beginning of the pandemic (WaPo). This thing is far from over.
Will this be a quick retest of confidence in the markets? Will these losses rebound as quickly as the earlier coronavirus related drops? Or will the market continue to act as irrational and erratic as it has been since the beginning of this crisis? Only time will tell!
Something to watch
We recorded two incredible episodes of the podcast this week and are wrapping up production to release them. We had the pleasure of hosting Peter Linneman, the Founding Chairman of Wharton’s Real Estate Department and founding co-editor of the Wharton Real Estate Review. We touched on everything from the professionalization of this industry to his take on how the health impacts of the current crisis will play out.
We’ll follow that episode with another from a longtime friend of the show, Paul Kaseburg, who gave us an update on how their view of forecasting is changing in the current times and what key metrics they’re following as the uncertainty unfolds.
Let us know what you’d like to hear on future episodes – you are the reason we produce them! Stay safe out there, wash those hands and remember, the only way we’re going to get through this is together.
-Adam Hooper, CEO
Key Articles To Read This Week
NREI spoke with Calvin Schnure, Nareit senior vice president, on his takeaways from this year’s virtual REITweek.
The court battle highlights the mounting tension between retail landlords and their tenants.
Nearly half of commercial retail rents were not paid in April and May
The head of real estate at Norway’s $1 trillion sovereign wealth fund, the world’s biggest, says he expects office space to stay in demand, even though the Covid-19 crisis will leave its mark.
Warehouses are definitely in demand among family offices and HNWIs. But some other property sectors also look promising.
At NAREIT’s virtual REITWeek conference, real estate leaders discussed the impact of the pandemic on operations and offered insights on sustained reopening strategies.
“If people have to stay six feet apart and have to wear masks, why are we bringing them back?”
Massive global corporations across the country are either going completely or partially remote.
Investors are increasingly taking a “barbell” approach to a commercial real estate market that’s been roiled by the coronavirus.
The Federal Reserve pledged to maintain at least the current pace of asset purchases and projected interest rates will remain near zero through 2022, as Chairman Jerome Powell committed the central bank to using all its tools to help the economy recover from the coronavirus.
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