Coronavirus Updates: Read Bisnow’s Ongoing Coverage Here
Bisnow's editors will update this file with the latest and most significant news related to the coronavirus' impact on commercial real estate.
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'Everyone Is Tense': Office Owners Demand Proof Of Hardship As Tenants Seek Relief — April 15
For office landlords and their tenants, the new world order of a significant economic downturn and long-term social distancing guidelines is particularly uncertain as extreme lockdowns roll into a second month in major markets like New York. Both sides are keen to protect their financial interests, and delicate, tense conversations about rent payments are taking place.
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These Real Estate And Construction Industry Insiders Will Advise President Trump On Reopening The Economy — April 15
President Donald Trump tapped more than a dozen real estate and construction industry leaders this week to counsel him on plans to reopen the national economy amid the coronavirus pandemic. The White House announced the formation of Great American Economic Revival Industry Groups Tuesday night, made up of more than 200 people, largely corporate CEOs, who will give Trump advice on when and how the federal government should reopen the economy.
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84% Of Apartment Renters Have Paid April Rent — April 15
A few extra days made a big difference, and now April multifamily rent collection is much closer to historical norms. About 84% of renters made a full or partial April rent payment by April 12, according to data released Wednesday by the National Multifamily Housing Council, which surveyed 11.5 million professionally managed apartment units across the U.S.
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Survey: Large Corporations Could Bring Office Employees Back In Waves — April 15
Commercial real estate professionals at big companies are imagining a return to office space that is less celebratory and more strategic in terms of how employee health is protected. Leaders tied to major corporations around the world anticipate employees will return to work at different times, with some organizations alternating employee schedules so staffers don't occupy workspaces at the same time.
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How Property Managers Are Dealing With Tenants Forced To Stay At Home — April 15
In six weeks, multifamily property managers have had to completely reinvent their profession in the face of an uncertain future, creating anxiety for managers and tenants alike. It has also forged a determination to see the crisis through, property managers say, knowing they must devise ways to work around pandemic-imposed barriers to ensure they can take care of their residents who are stuck in their apartments.
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UK Property Sales Listings Plummet In March — April 15
Following the General Election result at the end of last year and the UK’s confirmed exit from the EU in January, there was a resurgence in the number of real estate assets available. However, the growing global impact of the coronavirus has resulted in a drastic downturn in the number of deals being completed as well as new assets coming to the market. Sellers offered £800M of new assets in March — a figure that was £1.9B in March 2019.
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Living On Credit: Rent Payments By Card Rose 30% In April, Study Finds — April 15
Digital payments for rent are on the rise as the coronavirus crisis continues. Zego, an apartment technology firm, found that credit card usage for processing lease payments was up 30% in April, and new registration on digital payments was 25% higher in April than a month earlier. The firm’s study also found that CashPay, which allows tenants to pay rent at CheckFreePay retail locations, dropped 40% in usage.
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In The Coronavirus Crisis, Some Retailers In Chapter 11 Are Too Stuck To Reorganize — April 15
Struggling retailers and secured lenders usually push for Chapter 11 bankruptcy proceedings in the hopes of escaping debt and reorganizing under the court's authority, but the national coronavirus pandemic has made some of these proceedings much more complicated. At least two retailers, Pier 1 and Modell's, asked courts to stop their Chapter 11 proceedings temporarily and to possibly grant rent reprieve as long as their spaces cannot be occupied.
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Miami's Small, Boutique Office Market Could Be Coronavirus-Resistant — April 15
The year was off to a sweet start for the Miami office market: 100K SF of positive absorption focused in downtown Miami and Brickell, much of that driven by move-ins of WeWork and Industrious, according to JLL. Then came the coronavirus. Now, local experts are predicting how the office market will be impacted both short- and long-term. And they are generally optimistic.
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Construction Leaders Working With State On Reopening Plan — April 15
Construction stakeholders and Washington state agencies are determining when and how construction workers can go back to work. As the number of positive coronavirus tests and deaths fall in Washington, the governor says the state will soon transition from the “dull blade” of social distancing to a more targeted approach, which will focus on the infected and allow others to return to work.
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Ghost Kitchens Aim To Capitalize During Coronavirus Pandemic — April 14
A ghost kitchen is a single facility that houses multiple restaurant operators to prepare food for takeout or delivery only. In a way, it is sort of a coworking spot for restaurants, except there is no need for a wait staff. While the food service industry nationwide is experiencing a record decline and an increase in layoffs, there has been high demand in food delivery and ghost kitchens as consumers order takeout under restrictive shelter-in-place orders.
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What Social Distancing Looks Like On An Active Construction Site — April 13
Construction sites may not immediately seem like worrisome places for virus transmission, with employees spread out across a wide area. But over the course of the day in a construction zone, there are choke points where employees would normally come into close contact with each other. Proactive companies are taking steps to ensure job sites aren’t a place for the coronavirus to spread.
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How To Be A Great Place To Work During A Pandemic — April 14
It’s one thing to be considered a good employer when things are normal. What about when a pandemic hits? Amid the mass work-from-home experiment, some lauded employers are discovering that robust communication, frequent employee surveys and acts of compassion are going a long way to keep workers happy and maintain corporate culture without in-person touchpoints.
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Centralized Cash, Less Density And Brand-Level Messages: Here's How CRE May Change After This Pandemic — April 13
The coronavirus pandemic will force commercial real estate to make significant structural changes in order to prepare for a new normal, McKinsey & Co. said in a report. As many of the country's offices and storefronts remain unoccupied and rent collection stays uncertain, the global management consulting firm laid out several measures that it said commercial real estate might need to adopt or accelerate. Those include centralizing cash management and operator "overcommunication."
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REBNY Calls For A Landlord Bailout — April 14
The Real Estate Board of New York asked lawmakers to bail out landlords amid the coronavirus pandemic in a letter sent Monday that was co-signed by several business groups and chambers of commerce for all five boroughs. The authors sketched out four ways that lawmakers can help the ailing New York City economy, including a call to subsidize landlords who offer rent relief to their tenants.
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My New Normal: Newburger-Andes Chief Investment Officer David Andes — April 14
David Andes is chief investment officer with Atlanta-based Newburger-Andes, a 45-year-old real estate investment firm with a $500M portfolio that includes hundreds of tenants. Newburger-Andes has operated for most of its life from a small office building overlooking the immensely busy Interstate 285 ring around Metro Atlanta. But since the pandemic, Andes has become accustomed to working from home and anticipates office space will shrink by as much as half.
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‘Dawn Of The VR Era’: Proptech Adoption Exploding As CRE Goes Digital — April 12
Commercial real estate firms are rapidly trying to shed their tech-averse nature as they adapt to mandated social distancing, creating a demand surge for proptech companies that allow prospective tenants to tour spaces virtually. While the coronavirus and the shift to remote working have spurred new interest in these technologies, it has also presented new challenges. Tech companies that create virtual tours still must travel to a building to film it.
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ESRT CEO Tony Malkin On Offices After Coronavirus And Preparing For The Next Crisis — April 13
“I think the big factor here is going to be individuals’ spaces matter.” As New York moves into its fifth week of extreme lockdown, office landlords like Empire State Realty Trust CEO Anthony Malkin are questioning how their businesses will function when the world moves into its new phase, however that may look. Increasingly it seems that filling space with lots of people — the hallmark of office design over the last few years — could be a thing of the past.
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Billions Of Dollars In U.S. Construction Loans Have Been Affected By The Coronavirus — April 13
The coronavirus pandemic has disrupted at least $3.9B in U.S. construction loans, as cities and states continue to implement a patchwork of social distancing policies and stay-at-home orders. Built Technologies Director of CRE Strategy Jim Fraser told Bisnow that about 22% of U.S. construction loans managed via the company’s loan management platform are based in a location with some kind of construction suspension order in place, and as the pace of construction projects falls behind schedule, loans automatically become distressed.
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For CRE Brokers, Virtual Tours Are Not A Panacea — April 10
In the near term, the coronavirus pandemic has turned the economy on its head. In the longer view, it may benefit commercial real estate by ushering in the adoption of new technologies. One of the most discussed areas of potential growth is virtual property tours, a tool many brokers have been forced to embrace as shelter-in-place mandates have been enacted. Still, experts believe the vast majority of prospective tenants will still want to tour a space in person before closing, even if a virtual tour helped get them through the door.
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De Blasio Plans To Use 6,000 Vacated Hotel Rooms As Homeless Shelters — April 13
Recently vacated hotel rooms across New York City will be used to house thousands of the city’s homeless population after weeks of pressure to do so from advocate groups. The move will nearly double the number of people moved from shelters to hotels, up from the 3,500 previously transferred.
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Check Out How This Big-Box Store Transformed Into A Hospital — April 13
The Hoag Health Center in Orange County, California, is unlike a medical facility one might normally see: It looks and feels more like a spa, complete with high ceilings, wooden floors, natural light, micro-retail options, a coffee bar, a fitness clothing store and a gym. The nonprofit site has transformed a former Joann Fabric and Craft big-box store into a facility focusing on health and wellness.
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CBRE: Hotels, Retail Will Take Up To 30 Months To Fully Recover — April 10
Predicting an economic recovery starting in Q4 2020 and GDP growth of more than 5% in 2021, CBRE researchers anticipate industrial properties will bounce back in 12 months. But they see a longer recovery for the hard-hit retail, food and beverage, and hotel sectors, predicting it will take up to 30 months to recover.
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Lessons For Real Estate From A Market Coming Out Of Lockdown — April 12
For real estate in the U.S. and UK, Asia is a vision of the future. Hong Kong was among the first places to implement stay-at-home measures, and they are having an impact in curbing the spread of the coronavirus. On a Bisnow webinar, Hong Kong-based Collin Lau, founder of private equity firm BEI Capital and former global head of real estate for sovereign wealth fund China Investment Corporation, discussed what a real estate market emerging from lockdown looks and feels like.
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My New Normal: Sares Regis Group of Northern California Commercial Division President Jeff Birdwell — April 12
In Jeff Birdwell's new normal, almost all of his division's construction has stopped, yet the commercial division president of Sares Regis Group of Northern California still has his hands full. When he isn't videoconferencing with the 50 or so employees in SRGNC's commercial division, Birdwell has 20 or so animals at home to keep him busy, along with hikes, horseback riding and teaching a course at Stanford's graduate school of engineering.
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57%: That’s How Much Rent Was Paid To UK Landlords This Month — April 12
UK landlords collected 57% of the rent they were due at the end of March, according to an in-depth survey. Remit Consulting found the figure by surveying property managers about nearly 79,000 commercial and residential leases. A week after the quarter day on March 25, 2019, the rent payment rate was 90%.
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Industrial Assets Will Not Escape Coronavirus' Wrath, But These Metros Are Better Positioned To Thrive — April 10
Whether a metro area’s industrial sector survives this downturn without significant asset disruption depends entirely on where a region’s industrial buildings are located and whether the community is already e-commerce focused, a new study from CoStar Group says. That's why Dallas-Fort Worth is better positioned to survive an industrial downturn than cities like energy-dependent Houston and auto manufacturing-focused Detroit.
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My New Normal: Wolf Commercial Real Estate's Jason Wolf — April 9
Like many in the commercial real estate business, Wolf Commercial Real Estate Managing Principal Jason Wolf started 2020 on an optimistic note, with his company riding the coattails of what it called “an exceptional performance” in 2019 when the brokerage firm saw gains in the numbers of completed transactions and the size of its deals. When his 25-person team began working from home, he was concerned about how business would continue. But several days in, he’s feeling optimistic, and he says he sees optimism from colleagues as well.
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IRS Extends Deadlines For 1031, Opportunity Zone Investors — April 10
Investors who have like-kind exchange or opportunity zone deadlines between April 1 and July 15 now have a little more time to close their deals. The IRS issued new guidance Thursday night that only seemed to muddy the waters, but tax experts are in agreement that 1031 transactions and opportunity zone investments are covered under a filing extension.
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The CARES Act Fixed A 'Typo' In 2017 Tax Law, Resulting In A Big Win For Property Owners — April 9
Tucked away in the $2 trillion stimulus bill passed by Congress a week ago is a tax law change that will benefit commercial property owners and some tenants well after the coronavirus pandemic runs its course. The change expands the tax deduction for many kinds of property improvements to 100% of the cost, with the deduction applicable right away, not over many years.
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Knotel CEO Amol Sarva On Layoffs, Giving Back Space And Which Companies Won't Survive — April 10
The past few years have been a time of enormous growth for flexible workspace provider Knotel. The company has leased some 5M SF across 250 locations around the world and reached a $1B valuation last year. In the new episode of Make Yourself At Home, Bisnow catches up with Knotel CEO Amol Sarva to discuss layoffs, handing back space to landlords and the suggestion the company has missed rent payments.
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Landlords And Tenants Are About To Get A Lot Closer — April 9
“I think if this [coronavirus pandemic] drags forward for the next 30 to 60 days, every landlord is going to learn everything about their tenants.” The sometimes volatile landlord-tenant relationship is set to get a whole lot closer — and that’s a good thing, industry experts like Crown Realty partner Scott Watson say.
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Craig Hall On The Good, The Bad, The Ugly And The Opportunities After COVID-19 Downturn — April 9
Real estate developer Craig Hall of the HALL Group refuses to take the Pollyanna approach when it comes to commercial real estate in the wake of market disruption. The real estate legend foresees commercial real estate battling through an 18- to 36-month recovery before experiencing a true rebound. While there is a silver lining to be found, it will take time for risky opportunities to turn into moneymakers.
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COVID-19 Catastrophe Won't End Soon, And Will Remake How We Use Office Space — April 9
No one knows how this disruption will end, but catastrophes can remake how we work and live, and experts say office conditions won’t simply revert to the pre-coronavirus status quo. Necessity led almost overnight to entirely new ways of running businesses, and companies should start learning from the upheaval.
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Developers With Lending Arms Eyeing Opportunities Amid The Coronavirus Crisis — April 9
Developers that broadened their reach into debt in recent years are now looking at what this new landscape may mean for their business. As the fallout from the health crisis takes its toll on the economy, many are considering what role they will be playing in future projects — and what new opportunities these circumstances may present.
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Take It From Florida: Yes, You Can Sell Condos Online Right Now — April 8
Many Americans have transitioned to working via Zoom, exercising via Zoom and having their dog meet with his psychologist via Zoom. Can you also sell real estate via Zoom? Experts in South Florida, where foreign buyers have long invested in condos over long-distance deals, say it can be done. They have a few tips.
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Houston’s Recovery From Coronavirus Will Be Slower Than Other U.S. Metros — April 9
Houston's economy has been battered over the past month, as the coronavirus outbreak disrupted businesses and consumer spending and crude oil prices fell rapidly. Under the weight of these factors, Houston’s recovery could take longer than other major metropolitan areas in the U.S.
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Sterling Bay Ramping Up Industrial Development Even In The Face Of COVID-19 — April 8
The COVID-19 crisis has stalled much of the U.S. economy, but with certain segments like grocery stores, pharmacies and hospitals, along with their underlying supply chains, still operational, industrial developers have opportunities to sign big deals. That includes Chicago-based Sterling Bay, which, after signing two major leases, remains confident about branching out to select cities around the country.
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Tips For Construction Companies To Get Through COVID-19 — April 7
There is no getting around government-mandated construction stoppages in their entirety, but that doesn’t mean there aren’t ways for owners and contractors to stay productive or at least proactive. It does mean one construction and management consulting company’s advice to clients depends largely on what phase of work and part of the country they are in.
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1031 Investors Begging For Relief From Tight Deadlines Amid Pandemic — April 8
The IRS is looking at delaying deadlines for like-kind exchanges, or 1031 exchanges, for real estate sales as the industry struggles to function during the coronavirus pandemic. More than a third of all property sales use 1031 exchanges, which means potentially thousands of investors who sold properties in late 2019 are under the gun to buy something soon to avoid capital gains taxes, unless the IRS extends the deadline.
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Only 69% Of Apartment Residents Have Paid April Rent, But That Number Isn't The Full Story — April 8
Only 69% of apartment households in the U.S. paid their monthly rent by April 5, falling by 12% from the collection rate recorded a month ago. It could be an indication of the coronavirus’s impact on the economy. However, comparing the new data for April with historical data is not a true representation of how rent payments are progressing, National Multifamily Housing Council Vice President of Research Caitlin Walter said.
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Mom-And-Pop Landlords: We're In Danger Of Going Bankrupt Without More Help — April 8
“This is 100% unprecedented. Who can even consider this kind of situation in their normal business model or planning?” New York landlord Andrew Latsko and his family have owned multifamily buildings for 60 years. They have weathered changes of the market and of the world, they have saved for a rainy day, and he knows what to do if a few tenants aren’t able to pay rent. But the downturn caused by the coronavirus pandemic is a different beast altogether.
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No More 9 To 5: How CRE Parents Are Working Through The Pandemic — April 3
Thrust into survival mode, working parents from entry level up to the C-suite are finding ways to stay productive, and in many cases, that means entirely reinventing what was previously known as “the workday.” Regardless of whether the 9-to-5 model is paused for social distancing or a relic of the past, leadership and workers are playing catch-up trying to figure out how to move forward without it, and that includes work-from-home parenting.
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Construction Companies Eligible For Cash Under CARES Act, But Homebuilders Still In Limbo — April 7
Construction firms with a headcount of 500 or fewer may be eligible to apply for Paycheck Protection Program loans under the CARES Act, according to new guidance from the U.S. Department of the Treasury. What remains unresolved is whether homebuilders are eligible for PPP loans.
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Big Investors See Huge Opportunity In Distressed Real Estate — April 7
Real estate investors are predicting the sharp economic decline resulting from the spread of the coronavirus may be a greater opportunity to buy distressed assets than even the Great Recession. Despite the uncertainty surrounding the economy, including the long-term prospects of many tenants, it is an opportunity that big names are not willing to let pass.
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Developers Prepare For Lengthening Project Timelines — April 7
As Houston’s commercial real estate industry grapples with the twofold ramifications of the coronavirus pandemic and plummeting oil prices, development pipelines could be severely disrupted this year. Developers are facing longer project timelines for both planned and current construction amid growing issues with permitting and inspections, as well as personnel shortages.
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COVID-19 Hit Brick-And-Mortar Retail Hard But One SoCal Company Looks To Capitalize — April 7
Of all the commercial real estate sectors, retail has arguably been hit the hardest since the onset of the coronavirus in the U.S. in late January. Even before that, the industry had its troubles, particularly with the widespread use of online shopping. But Paragon Commercial Group principal Jim Dillavou expects to see a wide open market aimed for a bounce back, which is why his company announced plans to invest $500M in retail properties between 2020 and 2021.
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My New Normal: West, Lane & Schlager Co-Founder Eric West — April 7
For tenant brokers like Eric West, a typical day consisted of in-person meetings with clients and tours of office buildings. Now, while he has adjusted to working from home and developed a routine, West said he does not think this pandemic will change the importance of face-to-face interactions in the commercial real estate business, and in the office environment, in the future.
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Airbnb Raises $1B, Says Company Will Focus On 3 Core Products — April 7
Airbnb has raised $1B in debt and equity and will focus more on longer-term stays, the short-term rental company said Monday. Investment companies Silver Lake and Sixth Street Partners have committed the funding as Airbnb continues to take a hit in a travel industry that has been leveled by the coronavirus pandemic.
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TGI Fridays' $380M Deal To Go Public Canceled As Chain Restaurants Spiral Down — April 7
A $380M deal struck late last year to take TGI Fridays public has fallen through, crushed by the condition of the restaurant industry in the wake of the coronavirus pandemic. The document announcing the deal was off cited "extraordinary market conditions and the failure to meet necessary closing conditions.”
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Camden’s $5M Resident Relief Fund Empties In 16 Minutes — April 7
A $5M relief fund created by Camden Property Trust to provide financial relief to tenants emptied within 16 minutes of opening for applications. The fund was created as a way to help tenants receive financial assistance quickly, recognizing that one-off payments to individuals under the recently passed CARES Act could take weeks or even months to receive.
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U.S. Office Energy Usage Down 22% As Many Properties Keep Lights On — April 7
As workers across the country have retreated to their homes as a result of widespread lockdowns, the impact on electricity usage in offices is beginning to become clear. When broken down by region, the largest electricity decreases followed areas that first enacted drastic measures to close down workplaces.
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Could The Coronavirus Be A 'Turning Point' For New Yorkers To Leave En Masse? — April 6
In the last two weeks, New York has become the worldwide epicenter of the COVID-19 crisis. The pandemic has taken a huge toll on the economy, and untold numbers of jobs have been wiped from the city. As the situation has become more and more dire, many New Yorkers have fled their city dwellings — mirroring a similar trend around the country.
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The Coronavirus Landlord-Tenant Playbook, Revealed — April 6
As the coronavirus pandemic continues to wreak havoc on the global economy, experts offered Bisnow a four-point plan for how tenants and landlords can make sure everyone comes out of the other side of the crisis as unscathed as possible. It starts with acknowledging we are all in this together.
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Funding For Affordable Housing Likely To Shrink As Recession Takes Hold — April 5
Although all of commercial real estate has entered the world of uncertainty that is April 2020, it can be safely said the affordable housing crisis isn't going anywhere. How equipped the multifamily sector is to address that crisis amid the ongoing coronavirus pandemic is much more open for debate.
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For Employers, CARES Act Tax Provisions May Offer More Relief — April 3
On top of payroll relief, the $2 trillion Coronavirus Aid, Relief and Economic Security Act contains tax provisions that may help business owners free up cash in the form of tax refunds. In the pages of the CARES Act are measures concerning net operating losses, excess business losses, business interest expense and depreciation rules, to name a few.
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My New Normal: Prestbury Investment Chairman Nick Leslau — April 5
The pressures of running a listed company in a time of crisis can find you anywhere, even if you are working from home in the idyllic English countryside. Prestbury Investment Chairman Nick Leslau said he is lucky that for him, lockdown means working from a floating office where he can cast a line and fish for carp.
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A Loan To Your Tenant From The CARES Act Doesn't Mean It Can Pay Rent — April 1
The $2.2 trillion Coronavirus Aid, Relief and Economic Security Act was signed into law last week, throwing a lifeline to many individuals and small businesses struggling as the coronavirus disrupts the economy, and landlords worried about collecting rent have mentioned the stimulus bill as a reason tenants may not need rent abatements. But while small businesses may receive a cash injection in the short term, that money may not be earmarked for rent.
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The Rollout Of Coronavirus Testing At Retail Sites Is Happening At A Snail's Pace — April 2
Prime real estate to test for the coronavirus is under tents in large parking lots adjacent to commercial properties, including retail but also office and industrial. Yet a boom of testing sites in the parking lots of the nation's largest retailers, which tend to be centrally located in densely populated areas, hasn't materialized.
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My New Normal: Compass Vice Chairman Robin Abrams — April 2
The unknowns in business right now make Compass Vice Chairman Robin Abrams uneasy. But some leases are still going ahead, the longtime New York retail broker said, and this crisis has shown her just how resilient the industry can be. As she adapts to her new normal, Abrams is finding joy in activities she could not normally do.
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Retail Investments Dry Up As Buyers Can't Figure Out What Cap Rates Should Be — April 2
As landlords wait and see which retail tenants will be paying, real estate investors are facing their own uncertainty: How to determine a cap rate on a potential shopping center investment if rents are not a guarantee during this pandemic. At the end of last year, the median cap rate across the U.S. for shopping centers was 6.5%, down more than a full percentage point in the past few years. COVID-19 threw that paradigm out the window.
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'There's No Bailout For Landlords': What To Expect As Anxious April Begins — April 1
Coronavirus is the common existential threat to tenants, property managers and owners alike as the rent comes due on April 1 — and all parties are asking the same question: What happens now? Bisnow spoke to dozens of owners and managers of multifamily, retail, office and industrial real estate about what they will do when a tenant can’t pay — or, as some fear, can but won’t.
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Market Volatility Leads Short-Term Rentals Into Uncharted Territory — April 1
The coronavirus pandemic has left no part of the travel industry unscathed, and that includes the unicorn of the short-term rental world. Airbnb, like traditional hotels, has been hit hard by a flood of cancellations, lost revenue and plummeting daily rates, but the company has also had to contend with headwinds unique to the short-term rental sector.
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WeWork Is Offering Big Rent Reductions To Hook Tenants Long-Term — April 1
WeWork is reportedly slashing rent for some tenants who will agree to sign up for long-term deals as the coronavirus crisis continues to rage in the company’s biggest market: New York City. New discounts are being offered to U.S. tenants who normally take the space monthly but would agree to sign up for two or three months.
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Co-Living Providers Feeling Short-Term Pain, But Still Confident In Sector's Future — April 1
Co-living providers like Common and Quarters have been expanding rapidly across the U.S., betting on the idea that people want to live in apartments with multiple roommates and large socializing spaces. These co-living companies now must navigate a pandemic that is challenging their business models and their growth prospects.
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My New Normal: Pinnacle Structural Engineers President Adam Cryer — March 31
Pinnacle Structural Engineers President and co-founder Adam Cryer used to have a short commute to the office. That commute has shortened even further, now that he is working from home. With not enough room for both him and his wife in their shared home office, sometimes the commute is lengthened all the way to the kitchen table or the couch.
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JLL Latest To Furlough Staff As Virus Crisis Deepens — March 31
UK property consultancies are bracing themselves for a series of staff layoffs as the coronavirus crisis bites deep into the economy. JLL on Tuesday became the latest to confirm that it is furloughing staff, saying it “will be participating in the UK Government’s Coronavirus Job Retention Scheme.”
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Pandemic Batters Oversupplied Senior Housing Market — March 31
The novel coronavirus pandemic poses an extra layer of difficulties for the senior housing industry, which was already suffering from supply outpacing demand in recent years. As the number of residents drops, the industry as a whole is facing new, potentially more expensive challenges, such as serving residents their meals without having them gather in dining rooms.
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Industrial Demand For New Space Goes Into Steep Decline Even As E-Commerce Users Are Busier Than Ever — March 31
The collapse of certain sectors of the economy due to COVID-19 fears has undermined the industrial sector's once-splendid prospects in the Chicago region. Although demand is high for goods bought online, it's going to take time before e-commerce distributors feel comfortable signing deals for new space.
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The Coronavirus Is Going To Change How We Think About Design — March 31
As the coronavirus spreads, design leaders are beginning to focus on how they can combat infectious diseases and improve public health outcomes. Joe Allen, a Harvard assistant professor of exposure assessment science, told Bisnow buildings can play an important role in minimizing the risk presented by different modes of disease transmission.
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The Scramble Is On To Build Temporary Healthcare Space — March 30
In the face of a pandemic that threatens to overwhelm the U.S.' capacity to provide healthcare, states and localities are racing to improvise new space. Across the country, governments and the private sector are working to expand existing facilities and convert or construct a wide variety of other spaces into makeshift hospitals as the healthcare industry prepares to be overwhelmed.
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CRE Industry Keeps Deals Afloat Through VR Technology, Skype And FaceTime — March 30
All the intangibles revealed during commercial property tours can be the deciding factor in landlords winning over potential tenants. But what happens when an international pandemic like the coronavirus makes it impossible for brokers to invite prospective tenants and clients on-site for personalized tours? Some are still sealing deals — just from the comfort of their own homes.
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Foreign Investors Eyeing U.S. Property For Recession-Era Deals — March 30
Before the coronavirus hit the U.S., foreign investors were bullish on the country's commercial real estate sector, a new survey from the Association of Foreign Investors in Real Estate found, and the pandemic has not waned interest. Several of those surveyed have updated their responses to say that 2020 is now in prime deal-making territory.
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My New Normal: R.D. Olson Construction President Bill Wilhelm — March 29
Before California Gov. Gavin Newsom ordered a shelter-in-place mandate, on a normal business day, R.D. Olson Construction President Bill Wilhelm would arrive to the office, wearing slacks, a dress shirt and a sports coat. That was normal then. But the coronavirus pandemic has forced Wilhelm and many of his colleagues in commercial real estate to adopt a new normal. In Wilhelm’s case, it’s a more relaxed normal working from home, one with jeans and a collared shirt, and his dogs as co-workers.
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As #CancelRent Movement Gains Steam, Landlords Warn About ‘Chaotic’ Impact — March 30
New York’s residential and commercial landlords are bracing for a nail-biting April, and a slew of new policies floated across all levels of government are only adding to their anxieties. Among them is state legislation that would suspend rent for three months — a plan presidential hopeful Sen. Bernie Sanders backed publicly over the weekend. As the trend gains momentum, landlords worry even their tenants who can afford to pay rent simply will choose not to.
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The $2 Trillion Stimulus Bill May Not Be Enough Medicine For Ailing U.S. Economy — March 26
Congress' unprecedented $2 trillion bailout package is but a temporary bandage over the wound the economy is about to suffer, real estate experts tell Bisnow. Even with a short, sharp shock to the global economy, lawmakers may have to return to the table to address even more distress.
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PODCAST: Bisnow's 'Make Yourself At Home' With WBS Equities CEO Wendy Berger — March 26
Bisnow has a new podcast chronicling how members of the commercial real estate industry are dealing with the impact of the current global health crisis. In the debut episode of Make Yourself At Home, we speak to WBS Equites CEO Wendy Berger about her company's plans to offer rent deferrals to her tenants, being empathetic in business and how she thinks the industrial real estate industry will weather the pandemic.
Listen to the full podcast here.
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'Business As Usual Is Over': Knotel Eliminates Half Its Roles In An Attempt To Ride Out Pandemic — March 27
Flexible workspace provider Knotel has taken drastic measures in an attempt to survive the fallout of the coronavirus crisis, roughly halving its team to prepare for the new workplace paradigm. Knotel still expects to be profitable this year, but has revised its forecast. It predicts a return to a "new normal" next year, a co-founder said in a statement.
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Property Industry Unites To ‘Do Some Good’ For The NHS — March 27
UK property owners have joined forces to create a central register where the real estate industry can pledge support to the National Health Service and healthcare workers as they fight COVID-19. A repurposed national website acts as a one-stop shop for businesses to offer space, supplies, manpower and other resources that will help the NHS tackle the outbreak.
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Property Owners Face £2B Black Hole As Tenants Don’t Pay Rent Bills — March 26
The scale of the issue facing UK landlords and tenants as the coronavirus brings the economy to a halt began to emerge Thursday. One shopping center real estate income trust reported just 29% of the quarterly rent it was due had been paid, which, if representative, could mean a collective loss of £1.7B to £2.7B of rental income for UK landlords.
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Anxious April: Multifamily Braces For A Difficult Month — March 26
As April 1 approaches, multifamily owners and operators are steeling themselves for what could be a difficult month, with wide swaths of people unable to pay rent and new leasing slowing to a crawl as job losses mount across the country. With inconsistent government guidance — a patchwork of state and local governments have issued moratoriums on evictions and foreclosures — and landlords with disparate financial needs, no single way forward is clear for commercial real estate professionals.
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Amazon Closes Warehouse Indefinitely As Coronavirus Cases At Its Facilities Mount — March 26
Three positive tests for the novel coronavirus have shuttered an Amazon warehouse in Shepherdsville, Kentucky, until further notice. The Louisville-area cases aren’t the only example of confirmed coronavirus infections at an Amazon facility. But until now, the retail giant has opted to temporarily shut down facilities for cleaning instead of indefinitely closing them.
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Californians In Cramped Quarantine Are Eyeing Building 'Granny Flats' — March 26
Accessory dwelling units, granny flats, guest houses, mother-in-law units. No matter what you call them, the tiny backyard homes are getting lots of play, even in the midst of the coronavirus pandemic. A Los Angeles-based company that specializes in building and renting ADUs says it is seeing an increase in inquiries from homeowners looking to build the 250 SF to 1,200 SF dwellings on their property.
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The Senate's $2 Trillion Stimulus Bill Includes Relief For Retail, Hotels, Multifamily — March 25
Congress is preparing to pass an unprecedented $2 trillion stimulus package Wednesday in response to the damage to the U.S. economy caused by the novel coronavirus pandemic. Bisnow reviewed a draft of the legislation Wednesday morning, keeping a keen eye out for the sections that will have the most impact on the commercial real estate industry.
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‘It’s Pretty Apocalyptic’: Construction Sites Shutting Down Even As Most Cities Deem Them Essential — March 25
The construction industry across the country is experiencing mounting work stoppages, and they don’t always come from the government. The delays, which are threatening to upend an industry that accounted for more than $700B of spending in 2017 alone, are coming largely at the instruction of owners.
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Before You Break That Lease Over COVID-19, Negotiate First, Brokers Say — March 25
Going to court over nonpayment of rent, business interruption insurance or force majeure clauses is an expensive and time-consuming option even in the best of times. Brokers who survived the Great Recession are recommending against that route and advocating for a more flexible approach.
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Now 10 Years Old, The Affordable Care
