Contact Us
News

Coronavirus Updates: Read Bisnow’s Ongoing Coverage Here

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.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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. 

Read the full story here.

***

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.

Read the full story here.

***

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. 

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.”

Read the full story here.

***

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.

Read the full story here.

***

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. 

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

*** 

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. 

Read the full story here.

***

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.

Read the full story here.

***

'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.

Read the full story here.

***

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.

Read the full story here.

***

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. 

Read the full story here.

***

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. 

Read the full story here.

***

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.

Read the full story here.

***

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.”

Read the full story here. 

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

***

'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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

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.

Read the full story here.

***

‘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.

Read the full story here.

***

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.

Read the full story here.

***

Now 10 Years Old, The Affordable Care Act Made Us Healthier, But Less Prepared For A Pandemic — March 24

Ten years ago Monday, President Barack Obama signed the Patient Protection and Affordable Care Act into law. One of its impacts was to decentralize healthcare facilities, increasing the number of neighborhood clinics. The perhaps unintended consequence was a decrease in overall hospital beds, which, with the U.S. now gripped by the coronavirus pandemic, could prove to be the ACA’s weakness.

Read the full story here.

***

American Landmark Is Still Planning On Going On Its $2B Apartment-Buying Spree — March 25

While the coronavirus has all but halted business in many sectors, one Tampa, Florida-based apartment group is chugging along with its ambitious plans. A year after acquiring $1.5B worth of multifamily properties, American Landmark Apartments’ CEO says the company’s aim is still to buy another $2B worth of real estate in 2020.

Read the full story here.

***

Will Contractors Be Liable For Coronavirus Construction Delays? — March 25

The question of who bears the cost of the coronavirus impacts will likely remain a point of contention between owners, contractors and subcontractors for years. In the worst cases, those disputes could devolve into protracted legal battles. As disputes arise, the exact wording of the contracts will be key.

Read the full story here.

***

WeWork Still Charging Rent To Members Who Can’t Come, Paying Bonuses To Workers Who Do — March 24

While state and municipal orders across the country halt nonessential activity to stem the tide of the coronavirus, WeWork says its function is essential. Its members are criticizing the coworking giant, which is known for its flexible leases, as it refuses to close during the pandemic, offer refunds or suspend rent for tenants not using their space.

Read the full story here.

***

Commercial Tenant Eviction Ban Shifts Problem To Landlords And Lenders — March 24

The UK government’s plan to ease the burden on some of its small businesses is poised to cause problems for landlords and lenders. A three-month freeze on commercial tenant eviction was implemented Tuesday night to shelter the businesses that cannot pay rent because of the economic fallout caused by the coronavirus. But what about the landlords who need that rent to pay their own expenses?

Read the full story here.

***

Under Quarantine? Here's What California CRE Professionals Can And Can't Do — March 24

Other than essential infrastructure workers, California’s governor has ordered the state’s 40 million residents to stay home. What exactly does that mean for commercial real estate professionals? The short answer is, it depends on the specific job function. 

Read the full story here.

***

Forbearance Over Foreclosure: Lenders Encouraged To Play Nice As Coronavirus Hammers Economy — March 23

Economists are already calling the economic downturn caused by the coronavirus pandemic a recession, but banks are expected to strike a different tone than they did in 2008. The Federal Housing Finance Agency has announced that landlords’ government-backed loans will not face foreclosure if they do not evict their tenants, and lenders are expected to exercise some level of flexibility to soften the blow. 

Read the full story here.

***

Investors Eyeing Second-Half Bounce If Coronavirus Is Contained — March 23

Panic may surround discussions of the coronavirus and the economy — some economists are already calling the current downturn a recession. But some commercial real estate experts are seeing things more optimistically. Cushman & Wakefield Global Chief Economist Kevin Thorpe is among the glass-half-full group, predicting an economic rebound for the second half of 2020. 

Read the full story here.

***

CRE Grapples With 'Nuclear Winter' As Sublease Inventory Rises — March 23

There has been a sharp increase in available subleases on the West Coast, with Los Angeles alone seeing an inventory increase of nearly 40%. Hughes Marino Executive Vice President David Marino said this week that such an uptick is a sign of a recession, as tenants are trying to weather the economic storm caused by the coronavirus pandemic by subleasing their spaces.

Read the full story here.

***

Fear Of The Now, Hope For The Future: UK Property Pros On Dealing With A New World — March 23

UK real estate professionals are trying to strike a delicate balance as the coronavirus pandemic spreads. Their day-to-day business is marked by disruption and delay, but hope for the future remains. Leaders of an industry that relies on face-to-face contact are adapting, remaining cautious in the short term. But property is not a short-term business.

Read the full story here.

***

Force Majeure And Business Interruption Insurance May Not Be The Solution CRE Hopes — March 22

Tools like business interruption insurance, civil authority coverage and force majeure agreements inside leases are being cited as ways for tenants and landlords to stay afloat as people avoid commercial real estate, either as tenants or as customers, to limit the coronavirus's spread. But do those protections apply to this pandemic, and what kind of relief can affected parties expect? 

Read the full story here.

***

Major Multifamily Group Urges 90-Day Eviction, Rent Increase Freeze — March 22

The National Multifamily Housing Council is encouraging apartment firms to take measures that would ease the burden of tenants affected by the coronavirus. In addition to advocating for a temporary halt to evictions and rent increases, the NMHC is calling on the federal government to provide financial relief to property owners.

Read the full story here.

***

Property Managers Are Pivoting In Real Time To Respond To Coronavirus — March 20

"What we're doing now and what we were doing two weeks ago has changed markedly, just because things have elevated so quickly.” Mission Rock Residential President and co-founder Patricia Hutchison and property managers across the country are working hard to adapt to the ever-changing conditions of their industry as the coronavirus continues to spread. Policies on maintenance and rent deferral requests are suddenly needed, and issues as immediate as assisting ill residents and protecting healthy ones are top of mind.

Read the full story here.

***

Landlords Push Back As California Cities Order Halt To CRE Evictions — March 22

With several large cities passing temporary moratoriums on evictions of commercial tenants, landlords are trying to determine how they can meet their obligations while at least some of their tenants may be unable to pay rent. In this uncertain time, property owners are asking for bilateral relief — moratoriums that would benefit both landlords and tenants.

Read the full story here.

***

Construction Is Mostly Continuing Nationwide, But Firms Need To Beware Of Hidden Liabilities — March 19

The coronavirus pandemic has shuttered businesses of all kinds, at least temporarily. But construction — because of its outside nature and its workers’ routine use of face masks and gloves — largely marches on. The decision to move forward isn’t as simple as it might look from the outside, construction attorneys tell Bisnow.

Read the full story here.

***

The World’s Largest Serviced Office Company Asks Landlords For A Rent Freeze — March 20

IWG, which counts Regus and Spaces among its stable of brands, has asked its landlords for a three-month rent freeze. The world’s largest serviced office company has 3,338 locations in more than 100 countries, covering 62M SF. Bisnow has viewed a letter requesting the rent freeze that was sent to at least some of IWG’s landlords in the United Kingdom. It was not immediately clear if landlords in other countries had been approached with similar letters.

Read the full story here.

***

Cannabis Sales Spike As Quarantines Linger Longer — March 19

Just about every industry has been negatively affected by the coronavirus pandemic. One exception is cannabis sales in Colorado, medical and recreational alike. With municipal directives around the country urging people to limit their travel only to essential trips, one CEO says the industry is seeing customers buy in bulk in order to reduce visits to the dispensary. 

Read the full story here.

***

Chicago CRE Professionals Are Adapting To The Coronavirus Crisis, And Keeping The Deals Flowing — March 19

As COVID-19 continues to spread, more and more people are working from home. Some industries — and some individuals — were more equipped to adapt than others. Commercial real estate brokerage firms that already had plans in place to offer prospective renters online video apartment tours, for instance, were ahead of the curve when in-person tours became a health hazard.

Read the full story here.

***

How Real Estate Execs Are Soldiering On As Pandemic Takes Hold — March 19

Sheltering-in-place, working from home, going virtual.

These are not typical phrases in the commercial real estate lexicon, but as the coronavirus pandemic sweeps the globe — roiling markets, disrupting business and all matters of daily life — the industry is beginning to reckon with what lies ahead. How long this version of the “new normal” lasts is anyone’s guess, but one thing remains true: The commercial real estate industry never stops.  

Brokers, developers, architects and investors alike are adapting, and Bisnow spoke to dozens this week — in cities from LA to New York, Houston to London and Seattle to Hong Kong — to get a sense of how coronavirus is reshaping the way they work.

Read the full story here.

***

‘You Cannot Buy A Building Until This Is Over': Despite Stimulus, Chill Hits CRE Investing — March 18

In just one week, the coronavirus has turned from full-blown flight to safety for investors into a wait-and-see approach toward commercial real estate. Over that time, as the pandemic has spread and thousands of businesses have closed, the Federal Reserve has sprung into action, announcing $1.5 trillion in short-term loans, $700B in asset purchases, plans to purchase up to $1 trillion in commercial paper from companies and a slashing of interest rates to nearly zero. But even with those measures, uncertainty and the virus itself have suppressed investment for the time being, as have questions about how deep and long of a recession the U.S. economy now enters. 

Read the full story here.

***

We’re About To Find Out How Durable The Coworking Business Model Is — March 18

The very flexibility that drew businesses to coworking facilities over the last few years may be the industry’s downfall. It was attractive for a small business to lease space within a coworking facility without being locked into a long-term contract. But with the spread of the coronavirus, people are avoiding public places, and that could mean companies choosing not to renew their coworking leases.

Read the full story here.

***

'Lock The Doors And Walk Away': As Productions Go On Hiatus, Film Studios Shut Down — March 19

“How about total devastation?” A Georgia production arts labor union representative and many of his constituents are feeling the impact of the coronavirus pandemic. None of the 4,000 union members who had something in production as recently as last week are working, and the television and film industry that spent nearly $3B in the state last year has virtually shut down, spelling untold economic loss. 

Read the full story here.

*** 

As Stores Close, Landlords And Retailers Consider How Best To Stop The Bleeding — March 19

Across the country, retailers have been forced to close — whether by choice or by government mandate. Those closures are putting landlords in the unenviable position of having to decide whether they will send tenants packing, forgive rent, or rely on government or insurance intervention that may not come. 

Read the full story here.

*** 

How Hard Could Coronavirus Hit Supply Chains? It Depends On What Truckers Decide. — March 18

Shipments and the supply chain are more important than ever as medical supplies run low and many Americans are reduced to getting all of their shopping delivered. But truck drivers — who the country is relying on to get goods from place to place — are risking their and their families’ safeties by doing their vital job.

Read the full story here.

***

Investment Managers Launch Coronavirus Fund To Buy Low On Hospitality Stocks — March 18

The coronavirus has taken a huge toll on the stock market, and commercial real estate sectors have not been spared. But with stock prices low, a New York City-based group of investors is taking a glass-half-full approach, citing an “inevitable recovery.” Compound Asset Management is raising money for a new fund designed to buy stock in businesses focused on hospitality and leisure real estate.

Read the full story here.

***

Construction Industry Pushes Back On Building Bans — March 17

“Nonessential” is the word of the week — borders are closed to nonessential travel, nonessential businesses are ordered to shutter. But what is essential? According to the president and CEO of the New York Building Congress, temporary halts on construction, like the one instituted in Boston, would mean putting a stop to critical construction work.

Read the full story here. 

***

Coronavirus Means Pubs, Restaurants And Leisure Tenants Need A Rent Freeze. Can Landlords Afford To Help Them Out? — March 17

As consumers avoid restaurants and other retailers — whether from voluntary social distancing, or from increasingly common government-mandated temporary closures of restaurants and bars — concerns are mounting about whether these businesses can survive the coronavirus pandemic. Many tenants are starting to call for landlords to provide relief, but many retail landlords aren't in any shape to do so.

Read the full story here. 

***

Webinar: CRE Investing And Coronavirus — Where’s Safe, Where’s Not? — March 18

The coronavirus has had widespread economic implications, and investors are looking to inject their capital in safe ventures and get cash out of sectors on the verge of instability. Bisnow has put together a free, two-session webinar for investors and commercial real estate professionals to learn how they can capitalize. Monday’s webinar is slated to begin at 1 p.m. ET.

Read the full story here.

***

The Coronavirus Is About To Test The Benefits, And Limits, Of Teleworking — March 17

San Francisco has instituted a shelter-in-place policy, and New York City reportedly is considering a similar mandate. With employees across the U.S. working from home — whether by choice or as the result of corporate or municipal policy — commercial real estate companies have to adapt. But office real estate executives aren’t looking at teleworking as a long-term industry problem. 

Read the full story here.

***

As Restaurants, Retail Owners Brace For 'Absolute Disaster,' D.C. Passes Relief Bill — March 17

Restaurants are closing and laying off staff en masse after local orders banning them from offering any service but takeout and delivery. Washington’s unemployment rate could shoot to 20% from restaurant layoffs alone, the city’s chief financial officer warned. The D.C. government passed a relief package, strengthening unemployment benefits and deferring tax payments, but D.C. Council Chairman Phil Mendelson, in announcing the legislation, acknowledged that it wouldn’t be enough.

Read the full story here.

***

Carl Icahn Says Commercial Real Estate Will Blow Up — March 16

Shopping malls and office buildings are becoming prime targets for short sellers, who are betting on a possible wave of defaults in the sector soon. Amid this month’s stock market turmoil, billionaire investor Carl Icahn said Friday that he has staked his biggest position in a short on the commercial mortgage bond market, predicting in a television interview with CNBC that many of the country’s malls would default on loans made to them over the last 10 years.

Read the full story here.

***

Canceled Tours, Slowed Deals And Working From Home: Brokers Face New Normal As NYC Goes On Lockdown — March 16

Brokers are joining most of the country in self-house-arrest, but they are able to work and get deals done. The problem is deal volume has stopped as site visits get canceled, capital freezes and investors wait to see just how bad the oncoming economic hit will be. Debt brokers, meanwhile, are struggling with borrowers who want to seize on the newly lowered interest rates but lenders who are overloaded on deal applications.

Read the full story here.

***

CRE Tenants, Landlords Worry They Could Be Sued Over Coronavirus Infections — March 16

If cases of COVID-19 are confirmed from people who have been in your property, could you be sued? Perhaps, legal and insurance experts say. Princess Cruise Lines was already sued for negligence in not reporting cases of the coronavirus, and attorneys say landlords should hold themselves to a high standard of cleanliness and communication to avoid being accused of negligence amid the pandemic's spread.

Read the full story here.

***

The Cleaning Industry Ramps Up To Fight COVID-19 At Commercial Properties, But It Might Fail — March 16

As buildings are shut down due to the coronavirus — either out of precaution or contamination — the cleaning industry is being swamped with unprecedented demand. But it is completely unregul

Related Topics: coronavirus, novel coronavirus