Urbanexus Update - Issue #102
Urbanexus Update - Issue #102
H. Pike Oliver compiles this weekly update of real estate and community development news focused primarily on the USA. The inclusion of an article does not imply endorsement. And please note that some links may lead to items that are behind a paywall.
The coronavirus pandemic continues to have dramatic effects on the overall economy and real estate and community development.
The economy and the coronavirus
Power usage highlights onset of recession
Data on electricity use in the past three weeks suggest a sharp decline in U.S. economic activity on par with that of the Great Recession. It may already be the deepest downturn since the Great Depression; it is certainly the fastest.
Fiscal policy
The Fed’s Balance Sheet: The Other Exponential Curve Quantitative easing has led to an unprecedented expansion of the Fed's balance sheet, leaving some economists with more questions than answers.
Real estate overall
Equity REITs, Mortgage REITs, and housing-related equities all posted historically strong performance this past week. This time should be different compared with the struggles faced by the sector during the financial crisis based on underlying fundamentals. Most equity REITs and homebuilders have been conservative in their balance sheet management and strategic decisions during the past decade. The market appears to have been slow to realize, but did show signs of correction over the last week.
Seattle CRE leaders on the crisis
Three longtime commercial real estate executives shared their thoughts on when, and how, Seattle will recover from the coronavirus pandemic.
Real estate finance
Forbearance 2020: Standing on the precipice
By virtually eliminating any barrier to entry to obtain forbearance, policy makers have created substantial moral hazard with significant potential costs.
Retail
Under Armour to furlough 6,600 workers
In response to the spread of COVID-19, Under Armour Inc. (NYSE: UA) will temporarily lay off some 6,000 employees at its outlet stores around the country and approximately 600 workers at its U.S. distribution centers, effective Sunday, April 12. The Baltimore-based sports apparel retailer also said it would extend current store closures until further notice. In addition, the company’s board of directors and executive vice presidents will be taking 25 percent pay cuts during the public health crisis.
A tale of two landlords during the coronavirus crisis A teriyaki joint shuttered by the government's social distancing order asked for help with the rent from two landlords. The responses could hardly have been more different.
Regional and metropolitan dynamics
COVID-19 risk for workers varies across the USA Places like New York, Miami and Las Vegas have a higher share of the workforce in jobs with close proximity to others, putting them at greater Covid-19 risk.
Construction
Coronavirus construction limits in the USA
Currently, millions of Americans are required to stay at home to prevent the spread of the novel coronavirus that causes COVID-19. To ensure the safety and prosperity of their communities, governors and other authorities are allowing “essential” businesses to stay open. This dashboard tracks how states with a stay-at-home mandate classify Construction and Building Material Suppliers.
More than a quarter of general contracting firms in the U.S. have reported layoffs due to the nationwide coronavirus (COVID-19) outbreak, a recent study by the Associated General Contractors of America (AGC) found. The survey was conducted from March 30 to April 2 for AGC members. Of the 1,296 respondents, 27 percent said they have had to lay off, furlough or fire employees. The survey was released April 3, and it is likely that there have been more layoffs since then.