|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||0.919%||+0.266%|
|Total US COVID-19 Cases||1,875k||+151k|
|Total US COVID-19 Tests||18,910k||+3,720k|
I have to admit it feels trite to be writing a weekly update email about the health of the economy or the status of the real estate investment market given all of the pain our country is in at this moment. We wholeheartedly condemn all acts of racism and violence. Period. As an industry, and as a people, we must do better.
What’s Happening Now
The latest unemployment rate was just announced and many were surprised to see it drop to 13.3% with last week having seen another roughly 1.8 million initial claims. This comes at a time where the additional unemployment benefits of $600 per week is set to expire at the end of July and the CBO states an extension of those benefits would help in the short term but hurt in the long term.
We’re hearing from multifamily mangers all across the country that their portfolios are holding up surprisingly well, some even reporting increased occupancy in their properties over the last several months. This is borne out by the data from the NHMC showing that 2020 collections are only 150 basis points below those of 2019 through the first few days of June. Yet there are still over 21 million continued claims for unemployment insurance. Taking a note from our last update, something just doesn’t quite add up.
Something to watch
As the country begins to open up, we are paying very close attention to the different industry sectors that have been impacted by the current crisis and how those jobs will begin to recover. Many industries are forecasting a quick recovery – once those sectors open up, formerly employed workers will rush back into the workforce.
However, several industries may lag in job uptake such as those in the hospitality and entertainment industries, as well as sectors of the overall service economy and retail. Monitoring which sectors rebound more quickly than others will lead to a better understanding of how we should be forecasting and thinking about job growth coming out of this crisis.
Now, more than ever, we must come together as a nation to face the challenging times that are ahead for our country and our people. Take some time to ask yourself, what are you doing to make it better.
-Adam Hooper, CEO
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Key Articles To Read This Week
Life won’t be the same in a lot of ways as people transition back to their pre-COVID-19 lives—one big difference could be how much, or rather little, office space they come back if they have to return to a physical office.
Compass, the Wing, WeWork among firms donating and steering funds to minority-owned businesses and civil rights groups
Officials fear disastrous gridlock if people turn to cars because they remain concerned about getting the coronavirus on the subway and other public transit.
In a just-released forecast, NAIOP predicts net negative U.S. office market absorption for the next four quarters.
Marriott International (MAR.O) has reopened all its hotels in China and is seeing a steady recovery in the United States, its biggest market, Chief Executive Officer Arne Sorenson said on Monday.
Continuing claims rose sharply, hitting nearly 21.5 million in a sign that workers are being called back to work slowly.
Aaron Ellison joined the co-working company in the high-flying (but still money-losing) days of 2018.
COVID-19 adds a layer of existentialism to the mix, in that it has led many of us to question the meaning of home, community and connection on a deeper level.
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