COVID-19 Trends of the Week: July 13-17
More trouble for hotel and retail loans. The new standard for apartment leasing. The industrial advantage. These are the trends that shaped coronavirus coverage this week.
Real estate investors are asking themselves when recovery will begin. That’s hard to say when states where coronavirus cases are spiking are just now instituting restrictions and some are rolling back their reopenings.
- Hotels and retail propel CMBS delinquencies.
The CMBS market continues to take a hit, with hotels and retail still responsible for most of the pain. This week, Trepp released figures showing 24.4 percent of all hotel CMBS to be delinquent in June. As for retail, 18.1 percent of all CMBS were delinquent. Other property types are faring much better: Multifamily (3.4 percent), office (2.7 percent) and industrial (1.5 percent). Meanwhile, Blackstone announced it is liquidating its CMBS fund.
CMBS 2.0 Hotel, Retail Loans Spur Rise in Delinquencies
Commercial Property Executive
Submerged in securities: Many CMBS hospitality loans may be underwater soon
The Real Deal
Blackstone Says Goodbye to CMBS Fund
Propmodo
2. Virtual tours becoming “the industry standard.”
Apartment operators had been dabbling with video, 3-D and virtual tours prior to the pandemic. But the advent of the novel coronavirus has made this technology a must-have in apartment leasing, and it has kept leasing offices busy while remaining physically closed. It’s almost certain that, even when leasing offices re-open, this technology will continue to appeal to a large group of apartment shoppers.
Phones in Hand, Leasing Teams Take On Marketing
Multi-Housing News
Five Ways To Create Video Tours For Residential Real Estate
Forbes
Take a virtual tour of these new luxury apartments on Broadway
Bizjournals.com
3. Outlook for industrial gets better and better.
JLL is predicting the need for industrial could reach 1 billion square feet by 2025, largely due to the meteoric growth of e-commerce. This week, Amazon, which is likely to be the biggest consumer of this space, signed a 300,000-square-foot lease on Chicago’s West Side and announced the development of an 820,000-square-foot fulfillment center in Austin.
Amazon Plans $250M Austin-Area Fulfillment Center
Commercial Property Executive
As Coronavirus Infects Most Real Estate, Industrial Emerges Stronger Than Before
Bisnow
International Trade Creating New Opportunities in Industrial Real Estate
Globest.com
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