20192020Rent Payments Collected by April 13th90.1%85.0%Rent Payments Collected by May 13th89.8%87.7%Rent Payments Collected by June 13th88.9%89.0%Rent Payments Collected by July 13th90.1%87.6%*Data brought to you by NHMC Rent Payment Tracker
CurrentPrior Week Change10 Year Treasury0.613%-0.030%DOW26,734.71+1,028.62S&P 5003,215.57+63.52Unemployment Rate11.1%--Total US COVID-19 Cases3,612k+471kTotal US COVID-19 Tests42,520k+5,120k*Metrics as of 11am EST on Friday, July 17
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What's Happening Now
This was a big week for economic data, with the federal budget for June, CPI, and the NAHB Home Builders’ index all being released. We learned from the June budget that the US deficit hit an all-time high of $864 billion for the month and topping $3 trillion for the last 12 months through June. And we’re still not done with the stimulus to try and keep our economy afloat. Yikes.
Weekly jobless claims ticked down this week but still remain over 1.3 million with the US having recovered about 8 million of the 20+ million jobs lost since the beginning of this crisis. Still a long way to go, but we’ll take it.
In the real estate space, industrial and multifamily continue to be the darlings of investors desires as e-commerce pushes demand for warehouse space. Multifamily rent collections remain within a reasonable range from the 2019 numbers, though it will be interesting to watch what happens at the end of this month with the expiring unemployment benefits.
What To Watch
We’re paying close attention to where institutional capital is flowing (as mentioned above, see industrial and multifamily) and what that may mean for the opportunity set moving forward. There appears to be a stratification in the classes of assets that are either in or out, how long that will continue or who will be making the contrarian moves is yet to be seen.
We also continue to see an evolution of the retail experience, with – who would’ve guessed it – a return of drive in movie theaters! I remember seeing the last one in Oregon fall into disrepair while driving up and down the I-5 corridor as a kid, but maybe it’s time to take my kids now to one and see what it’s all about.
With the COVID-19 numbers setting more record highs on an almost daily basis, many questions remain on what this recovery will look like and how we get to a sustainable place from both a health and economic perspective. More mask orders are coming down the line and school openings remain a major question as we near a critical decision point.
As the hot days of summer tempt us to head outside, remember to keep your distance when possible, wear a mask when not and wash those hands! Enjoy what summer provides us and keep doing what we can to get through this together!
-Adam Hooper, CEO
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The keepers of capital prefer some sectors way more than others for the rest of 2020
Amid lack of ticket sales due to coronavirus, alternative revenue streams could become increasingly important for sports teams
Industrial facilities are seeing rising rents and potential bidding wars as online sales drive demand for space to store merchandise.
As more drive-in movie theaters pop up in parking lots of malls and big-box retailers, we look at how these partnerships work.
MetLife Investment Management has provided $97.5 million in debt to KKR to help fund its purchase of two distribution centers in Kenosha, Wis.
The 202-year-old maker of business suits, and one of the last with U.S. factories, joins other apparel brands in bankruptcy court
The Act is intended to fill the gap in the existing federal programs by providing financial assistance to CRE borrowers.
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