|Rent Payments Collected by April 13th||90.1%||85.0%|
|Rent Payments Collected by May 13th||89.8%||87.7%|
|Rent Payments Collected by June 13th||88.9%||89.0%|
|Current||Prior Week Change|
|10 Year Treasury||0.713%||+0.003%|
|Total US COVID-19 Cases||2,192k||+168k|
|Total US COVID-19 Tests||25,400k||+2,980k|
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What’s Happening Now
Another week, another mixed bag! Our nation continued to surpass estimates last week – 1.5 million people filed initial jobless claims, up from the projection of 1.3 million and bringing the 13-week total to 46 million. However, we are seeing signs of hiring activity that looks as though many of those jobs will be able to bounce back relatively quickly once states continue their move to open their economies.
McDonald’s announced yesterday that it’s reopening its dining room and anticipates hiring 260,000 people over the summer. This joins major retailers, food service providers, logistics companies and the tech industry who have all announced massive hiring plans to fill their vacant positions. Will this be the start of the hiring wave that many have anticipated will kickstart the return to normalcy?
What To Watch
As more counties and states begin the transition out of partial lockdown mode, we are definitely keeping an eye on the COVID-19 numbers. Here in Oregon over the last week we’ve continually seen the highest numbers of daily reported cases be beat the very following day. With mask wearing orders coming into play in multiple states, it will be a point of focus to see where this first wave ends up.
On to more traditional real estate observations, we are still seeing a deadlock between the price that a buyer is willing to pay and that which a seller is willing to accept. We are however seeing signs of increased transaction activity and anticipate we will see a wave of new transactions come together once a few parties step up to break the jog jam. Remember, nobody wants to be the first, or the last, to do anything!
We’re keeping an eye on the lending markets which, by most accounts, are very much open for business and doing everything they can to keep potentially distressed properties in a healthy place. Time will tell where everything ends up, but we remain positive that real estate will always be a great place to build wealth over the long term.
Stay safe out there and keep washing those hands!
Adam Hooper, CEO
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State of the Market
Dr. Peter Linneman, Principal of Linneman Associates and Founding Chairman of Wharton’s Real Estate Department, joined us on the podcast to discuss the current state of the market.
Key Articles To Read This Week
But the mayor’s office says “imprisoning people” is not the answer
Guidelines are in the market, although not all properties seem to be applying best practices.
To fill the weeks before Hollywood releases new films, Cinemark plans on showing classic titles at discounted prices.
Cities are accelerating applications and waiving fees to allow alfresco dining, but the moves are disrupting neighborhoods and cutting much-needed tax revenue.
Here’s how the industry is preparing to bounce back from the coronavirus crisis.
Activity in logistics space bounces off of ‘historic’ April lows
The loss of jobs portends far-reaching economic impacts on the Orlando area, including the real estate market.
Vacancy was up to 6.2% last month
In San Francisco, the median rent for one-bedrooms is down 9% from last year to $3,360 and two-bedrooms are down 6% to $4,420, according to Zumper.
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