Profimex Market Review Update – September 2, 2020
Distress Investors Wait for Moratoriums on Evictions to Lift
Eviction Moratoriums across the US for rental and retail properties is likely driving the low deal volume. After they are lifted, many real estate experts expect there to be a flood of evictions; thereby, creating more distressed opportunities in the market. Mark Foster, attorney at Snell & Wilmer in California, expects to see a flood of evictions. “Most retail tenants, like restaurants and fitness centers, will not be able to recover,” he says. “I don’t think the landlords or their lenders are going to be able to extend and do anything. All of a sudden, you’ve got a bunch of evictions and a bunch of half-vacant buildings that owners are going to have to sell. And they’re going to have to sell at a discount.”
Manhattan Employers Are Slow To Bring Workers Back to the Office
A Recent survey has found that Just 8% of Manhattan’s 1 million office workers had returned to their buildings in mid-August, according a survey of employers conducted by the Partnership for New York City—a nonprofit organization dedicated to bolstering local commerce and innovation. Those same employers had projected in late May 2020 that 10% of their workforce would be back in the office by mid-August 2020. The biggest influence on whether office workers will return will be on the status of the COVID-19 pandemic. Additionally, transit safety, the reopening of schools, and the availability of childcare were other highly ranked factors in employer plans.