|Rent Payments Collected by April 27th||95.9%||91.7%|
|Rent Payments Collected by May 27th||94.8%||93.3%|
|Rent Payments Collected by June 27th||94.7%||94.2%|
|Current||Prior Week Change|
|10 Year Treasury||0.669%||+0.029%|
|Total US COVID-19 Cases||2,754k||+315k|
|Total US COVID-19 Tests||33,460k||+4,890k|
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What’s Happening Now
Let’s start with some good news this week – the June unemployment numbers are in we saw a dramatic improvement to 11.1% overall, far lower than anticipated from adding roughly 4.8 million jobs! That blasted through expectations, with 40% of those jobs added coming in the Leisure and Hospitality sector.
Unfortunately, however, that also comes with some bad news. Texas has required that bars close, Florida has tightened the reins on bars, NYC has delayed reopening of indoor dining and 70% of California’s population is under a new modified lockdown order for service businesses. The US saw over 55,000 confirmed cases of the coronavirus on Thursday, setting yet another record for the third day in a row. Not. Good.
As we head into the 4th of July weekend, we hope that everybody practices their obligation as a responsible human to keep social distance, wear a mask and do your part to slow the spread of a major resurgence in new cases.
What To Watch
This week, the Counselors of Real Estate put out a thought piece on the top 10 issues affecting real estate. No surprise, at the top is COVID-19. Major questions remain on the long-term impact of the health crisis on the real estate industry, from how we use space to whether or not entire industries will be wiped out or reimagined in its wake.
A related topic covered is the flow of people and how overall mobility will be impacted as a result of the current crisis. Will we see the urban exodus we discussed in a prior newsletter? Will our social desires overshadow our perception of safety from future health crises? How will that impact suburban real estate, both residential and commercial?
Finally, they talk about technology and workflows. How will companies, landlords and employees leverage technology knowing what we now know? How will we interact with the built environment and what new, interesting technologies will emerge in response to this crisis, and furthermore, what will stick around for the long term?
The more I write these weekly letters, it seems the more I want to fill them with the questions I find myself asking day in and day out. We’re still in a period of questioning and uncertainty. I, for one, sure do look forward to checking a few of these questions off the list and seeing what our world looks like on the other side.
Have a safe and socially distanced 4th of July celebration, wash those hands and we hope you enjoy the holiday!
Adam Hooper, CEO
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How 5G Will Impact Real Estate
Mark Raffman and Ben Hittman from Goodwin Law joined us on the podcast to discuss how 5G will be impact real estate.
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
The Counselors of Real Estate has identified the current and emerging issues expected to have the most significant impact on real estate for the foreseeable future, with the COVID-19 pandemic being the leading concern of the 1,000-member organization.
Lenders on commercial real estate have been inundated with forbearance requests. What they are willing to grant varies greatly by property type and borrower quality.
Investors will look to this week’s June jobs report for an update on the pace of the labor market recovery.
Companies brought back office workers, only to send them home again. Others still can’t figure out how to get people up a 50-story skyscraper.
The Empire State Building has been a symbol of America’s economic might for almost 90 years.
The chairman and CEO of MacFarlane Partners goes in-depth on his current investment strategy, solving wealth inequality and increasing diversity in CRE.
One of the most comforting things about reality is that crises don’t last forever. However, with some situations, the ramifications that a crisis can cause will be felt for months or even years after it ends.
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