Multifamily Rents Match 2019 Numbers - RealCrowd Recap

July 6, 2021
Multifamily Rents Match 2019 Numbers - RealCrowd Recap

Weekly Metrics

20192020Rent Payments Collected by April 20th93.3%89.2%Rent Payments Collected by May 20th93.0%90.8%Rent Payments Collected by June 20th92.2%92.2%*Data brought to you by NHMC Rent Payment Tracker

CurrentPrior Week Change10 Year Treasury0.646%-0.048%DOW25,745.60-334.50S&P 5003,083.76-31.58Unemployment Rate13.3%---Total US COVID-19 Cases2,430k+238kTotal US COVID-19 Tests28,570k+3,170k*Metrics as of 11am EST on Friday, June 26

RealCrowd's Thoughts

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What's Happening Now

The transitions continue. This week we learned that Texas, and as of late yesterday, Arizona, are putting the brakes on their reopening plans due to major spikes in COVID-19 infections. Locally, here in Portland, we are seeing the same spikes and murmurs of the same conversation. As predicted in earlier newsletters, the impacts to both confidence and economies could be massive if we are required to roll back the openings or go into a rolling shutdown.

In the real estate world, we’re seeing more signs of the transition from traditional retail to Amazon owned commerce. Amazon’s real estate arm has been on a massive expansion tear, furthering their footprints and dominance in the logistics space, adding over 4 million square feet of industrial space announced in the last weeks. Recent rumors have also suggested they are taking a more serious look at acquiring struggling retailers, including the likes of J.C. Penney and Macys. It’s long been joked that Amazon will one day take over the world, maybe that’s not too farfetched after all!

Multifamily rent collections remain strong through the first weeks of June, with the rate virtually unchanged on a year over year basis. This tracks with the conversations we are having in the market and is providing a tailwind to increased transaction activity we’re seeing on our marketplace.

What To Watch

Based on all the data, COVID-19 is here to stay. We’re definitely not out of the weeds and we wouldn’t be surprised if we see rolling shutdowns and stay at home orders. We don’t know what the overall economic impact will be, but most importantly, what the health and psychological impacts will be.

I was talking with a business development Director of a Fortune 500 company with over 10,000 employees yesterday and they’ve slashed their travel budget companywide to zero for the remainder of 2020. We discussed the challenges that presents for closing deals and growing their business in an entirely remote world – a major transition to say the least.

Businesses and industries that can adapt to these new methods of communicating and doing business are going to be the winners. Keep an eye on how industries are transforming to this new digital first environment, and who those key players leading the transitions are. There you will find the winners as we start to get a footing underneath whatever the new normal may be.

We’ll continue to do our best to stay on top of all of these changes. Let us know what you’d like us to explore - if you’ve read this far along in my ramblings, send me a note and tell me what you want to hear in these newsletters! Stay safe out there, wash those hands and keep pulling for us to get through this together!

-Adam Hooper, CEO

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