בעמוד זה ריכוז הודעות ועדכוני Profimex ושותפיה האסטרטגיים בנושא משבר הקורונה והשפעתו על השקעות נדל”ן בכלל והשקעות Profimex בפרט – חודש יוני 2020.
Some Types of Office Tenants are Returning Faster than Others –
The Recovery Will Look Like a Nike Swoosh –
Online Grocery Sales Still Surging, But Down from April Peak –
The Role of Great Offices in the Future of Work –
The Car Is King Once More: Markets With Less Transit Could Be More Popular –
Facebook Looks to Lease Neiman Marcus’ Hudson Yards Flagship As Office –
A recent market report, published by Savills, a global real estate service provider and public firm, reveals some interesting trends in the UK commercial real estate industry.
NYC Apartment Vacancy Soars as New Lease Signings Plummet –
Future of Investing Goes to Second-Tier Cities and College Towns –
Mall of America Said to Miss Another Payment on Mortgage Debt –
Brookfield Doubles Down on Rent-Stretched Retailers –
Last week, New York City voted to freeze rent for the roughly two-million New Yorkers living in rent-regulated units for one-year. This was voted in by the Rent Guidelines Board, which is a panel that sets the rent for New York City’s one-million rent-regulated apartments. The rent freeze will be in effect from October 1, 2020 to September 30, 2021
Omar Eltorai, the market analyst at Reonomy, believes that real estate prices will not depreciate the same way they did during the last financial crisis. He believes that there is strong investor appetitive for commercial real estate and multifamily and that lenders are in much better health than they were in the last financial crisis. “Bringing all of these factors together and looking at multifamily across the nation, I believe that the next 18 to 24 months will show many properties selling at discounts to last years’ highs. Though there will be greater pricing support than the last recession from the large amount of appetite and dry powder ready to be deployed
Property valuations are an essential part of the real estate business. Without a valuation, no transaction can be done with certainty. The process of valuing a property is by many consider both art and science. As a result of the pandemic, this job has become more difficult than it has ever been. Many factors need to be given extra consideration, including anticipation of future benefits, supply and demand/desire, substitution/comparison, balance (the relationship between cost, added cost, and returns), and progression/regression (increases or decreases in the price of a property with perceived value). Multiple market-derived assumptions and methodologies will be necessary to develop a fair and reliable value based on current market conditions. To assess the current market, it will be important to survey brokers, investors, and other market participants. While there are different methods to value a property, the discounted cash flow method is likely to be the best option, as the valuer projects financial performance over a period of years
Across the real estate industry many commercial properties are beginning to be repurposed for a post COVID-19 world. Newmeyer Dillion partner Mike Krueger explains that, “We’re going to see very creative developers come in and repurpose those properties for their next use,” Krueger says. “At this stage, we don’t even know what the best use of some properties will be.” However, some properties are already starting to be repurposed such as malls for medical use, such as a hospital or medical office
As previously communicated, the hotel sector is one the sectors that is hit the hardest by the pandemic. In the month of April, revenue per available room was down 96% for the year and most U.S. hotels had to suspend operations to minimize expenses. A recent report by the National Association of Real Estate Investment Trusts showed statistics for May that indicate that the worst may lie behind us. The reopening phase of the economy is expected to continue in more business and leisure travellers. Adding to the optimism is the most recent jobs report by the Department of Labor’s Bureau of Labor Statistics, noting that 2.5 million jobs were added in May
Many companies that are choosing to bring back their employees to the office are considering how to bring them back after employees have been working from home for a couple of months already. As a result, companies have begun to implement of a hybrid model that offers workers greater flexibility; whereby, workers would be allowed to work in the office and at home. This could help reduce square footage in expensive urban markets. As a result, industry speculation suggests that offices won’t return to their former density
The novel Corona pandemic has forced shutdowns of many industries in the U.S. economy, including some real estate sectors. However, despite the challenging environment, affordable housing development has continued to move forward. While developers and investors have continued to work with federal, state, and local officials to keep their projects running, the projects experience higher expenses and longer development times. To ensure the safety of the construction workers certain measures had to be taken, such as working in shifts and more frequent cleanings. Other factors influencing the development is the difficulty of receiving the certificate of occupancy, as building inspectors are unable to reach the property due to restrictions
Urban Land Institute (ULI) recently published its Reshaping Retail report which explains that COVID-19 will likely accelerate the restructuring of the retail property sector in the European market. The reason is primarily due to store closures, a negative economic outlook, and lower valuations based on a lower projected rental income. The closure of many businesses and stores has created additional challenges to already disrupted sector
The head of Real Estate for Norway’s sovereign wealth fund, Karsten Kallevig, believes that the entire concept of offices is unlikely to disappear. The concept of offices has recently been challenged by economists who believe that offices may become less relevant in the future, as result of a growing number of companies announcing plans to continue letting people work from home. Kallevig argues against such perception and further believes that the fund’s $30 billion portfolio will not fall short of its annual 7.7%. He also believes there will be opportunities in the aftermath of the pandemic
Looking ahead in 2020 and beyond, Forbes explains that understanding which market will be most attractive post-COVID-19 will be different than traditional analysis. Generally, the strongest real estate markets will be ones that have high job creation to spur demand for housing and commercial real estate. However, with job losses in virtually every market in the US, it’s important to approach real estate investing in a different manner today
The Distressed Deals Have Started
Barry Sternlicht, chief executive at Starwood, mentioned in April that the firm was “on offence” and looking for opportunities thrown up by the pandemic. He now closed on the first of those opportunities with a $325M investment into a mortgage REIT, managed by TPG. This is one of the first significant distressed real estate deals to be completed since the beginning of the coronavirus pandemic. The REIT owns 65 senior mortgages and one mezzanine loan, totalling $5.8B
Amid the negative impact of the COVID-19 pandemic on the housing market, prices continue to hold firm. Anecdotal evidence shows that demand for housing may rise in certain markets, as households want to relocate. JLL says that despite the pressures in the housing market, there are good signs that the US economy is beginning to reawaken. “Yet those slight improvements, coupled with the continued shutdown of other components of the economy, suggest further struggles ahead,” wrote contributor Ryan Severino in JLL’s report.
Mayer Brown, a leading global law firm for real estate firms and other financial institutions, recently released their outlook on trends that may shape the office market post COVID-19. The first trend is a reversal of office space densification. Whereas before COVID-19, tenants have been lowering their office space usage and adapting open floor policies. With outbreak of COVID-19, employers now are abiding by government health guidelines that require additional space for workers
According to a recent survey, published by Savills, 26% of the respondents are planning to resume their acquisition strategies in the second quarter of 2020, while additional 41% are planning to resume acquisition in the third quarter of 2020. This indicates that the scope of the negative impact on the investment market will be reasonably limited. Investor sentiment was strongest towards the business space market, namely industrial, logistics, and office
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