COVID-19 Trends of the Week: July 6-10

Coworking coming together. Student housing hopeful. Has the great real estate reset begun? These are the trends that shaped coronavirus coverage this week.

  1. Flexible office providers are ready to get back to work.

Many office workers miss the buzz of the communal work environment, but they may not want to risk getting on a train or a bus to get there. Or they don’t want to give up the extra personal time they gained by not having to commute. Flexible office providers are hoping to provide the middle ground that both employers and employees can be satisfied with. There are risks with any indoor environment, but these companies are willing to make the changes they need to make and they are willing to open up new locations where they need to be.

Flexible Office Sector Successfully Bends Under COVID-19 Rules 
Commercial Property Executive 

Why This Might Be the Moment for Coworking Spaces in Mall 
Globest.com

Coworking Spaces Adapt To Coronavirus Shifts 
Wilmington Biz

2. Student housing operators are hopeful despite digital learning looking like the norm.

Photo via Wallpaperflare.cm

While an increasing number of college classes will be delivered fully or partially online in the fall, most campuses will be open. That’s promising news for student housing operators. Many future projects have been put on hold, but there is a sense that many students will lease and return to existing off-campus apartments, even if most or all of their learning is online. But it will not be student life as usual. Extra precautions will have to be taken and some protocols will have to change. Meanwhile, Fitch released a report that found student housing CMBS delinquencies rose in June to 5.47 percent from 4.43 percent in May due to five student loans becoming delinquent.

What to Expect From Student Housing in the Fall: Q&A
Commercial Property Executive

Student Housing Developers Gear Up For A New Normal On Campus 
Forbes

Coronavirus Sparks Largest-Ever Rate Jump in U.S. CMBS Delinquencies 
Fitch Ratings

3. There are signs the great real estate reset has begun.

Once coronavirus slammed the general economy, commercial real estate investors have been waiting for prices and rents to return to more rational levels or lower. There are some signs that prices are adjusting, and the downward pressure is greatest in more densely populated, gateway cities. Multifamily and industrial are still relatively stable, but office, retail and hotel transactions are seeing a bigger adjustment.

How Do You Price Apartments in a Recession? 
Multi-Housing News

Investors Are Starting To See Hefty CRE Discounts In Gateway Markets 
Bisnow

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