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June 25, 2020

Why Black Property Owners Are More Vulnerable To The Coronavirus Recession

Nationwide, the impact of the coronavirus has disproportionately fallen on the shoulders of Black people. It has affected their wages, imperiled the survival of their businesses and infected their communities more dramatically than those of any other race or ethnicity.

Black property owners have been hit hard, too, as many of their incomes and rent rolls are dependent on those same communities. 

The racial wealth gap, a result of centuries of racist government policies, has led Black people who want to break into development to start with affordable housing since government subsidies allow them to purchase and build affordable real estate with little to no equity, these developers say. That path is now in jeopardy, as lower-income renters have struggled to make payments.

Beyond collecting less rent, the costs prompted by construction delays and the need for new equipment to prevent the spread of the virus falls on the backs of developers. For Black developers, this weight is even heavier.

“I think there are going to be many Black developers that don’t survive,” said Thomas Campbell, the founder and principal of developer Thorobird Cos. “That means that the effort towards building capacity of Black minority developers just got a heck of a lot harder. It’s almost like starting back before square one.”

Why Redlining Made Black Property Owners More Vulnerable To The Pandemic’s Economic Fallout

Affordable housing owners have been hit harder than their market-rate counterparts: Nearly 25% of rent-stabilized units in New York didn’t pay rent in June, according to the landlord group Community Housing and Improvement Project. Nationwide, 92.2% of market-rate apartment units paid rent this month, according to the National Multifamily Housing…

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After a winter and spring that devastated hotels in New York, summer is not looking hopeful either. The occupancy rate at hotels across New York City dropped from 45.7% to 43.6% overall this week, The Real Deal reports. This is the third week this number has fallen. Revenue per available room…

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CBRE Announces Newly Created Chief Diversity Officer Role

CBRE Announces Newly Created Chief Diversity Officer Role  

The biggest commercial real estate brokerage in the world has announced it will promote a division president to its executive committee to help push the company’s level of diversity and inclusion. Tim Dismond has been appointed chief diversity officer at CBRE, the company said in a release Wednesday. The…

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The Pandemic Might Have Broken The Office Market's Supply-Demand Dynamic. For Now.

You sell apples. Suddenly everyone wants oranges. What do you do?

Something like this dilemma confronts major office markets across North America and Western Europe, where the coronavirus pandemic has hit hardest.

The open question, as U.S. cases surge again and a speedy recovery seems less likely, is whether this is a temporary disconnect between supply and demand, one the market will speedily resolve as the pandemic and the social distancing it involves fade away, or has the coronavirus broken the property market in a more fundamental way?

“It’s an upside-down world,” Aviva Investors Director of Research for Real Assets Chris Urwin said. “What was good is bad, what was bad is good, one day we want lots of people together, the next we don’t.”

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Expected Rise In DFW Coronavirus Hospitalizations Complicates CRE's Reopening

DALLAS — North Texas is open for business, but property managers and landlords wonder for how long with UT Southwestern Medical Center physicians predicting a 20% jump in coronavirus-related hospitalizations over the next two weeks.

Texas recorded more than 5,000 new cases of the coronavirus Tuesday, the most ever in a single day. Hospitalizations have been breaking records daily for more than a week, according to the Dallas Morning News. Tuesday was also a record high for Dallas County, which reported 445 positive tests and 72 new hospitalizations.

“Today’s number of hospitalizations and new COVID-19 cases continues a disturbing trend of a surge of a second wave increase of COVID-19,” Dallas County Judge Clay Jenkins said in a statement Wednesday, following the announcement of 391 new cases.

For commercial real estate professionals, the next 14 days are a harbinger for what's to come. If cases continue to surge, will commercial premises remain open, shut down altogether or land somewhere in the middle of the two extremes with buildings open but tenants staying home? 

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CRE Players And Angels Owner Debut New Stadium Plans

 

LOS ANGELES — Within the next 10 or 20 years or so, going to a Los Angeles Angels game in Anaheim will be a remarkably different experience.

Rather than driving through a mostly vacant Platinum Triangle, parking your car and heading straight to the stadium, guests arriving on game days in the future could enjoy a lively retail, dining and entertainment scene on the 153-acre site.

A company affiliated with Los Angeles Angels owner Arte Moreno has submitted its privately financed, 30-year master-plan vision of what the stadium and its surrounding land could look like in the future.

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