APRIL 25, 2020

Editor's Note

Share Your Photos

Right now, almost all of us are working from home. But the commercial real estate industry has always been about getting to know people face-to-face. So, we would like to ask our readers to share a bit of yourselves with us at this unprecedented moment in time. Please share photos of yourselves at your new at-home workspaces, with your new pint-sized and furry co-workers and wearing your new protective gear (with your names and professional affiliations included if possible). We will publish the best images in an online gallery and in a future issue of NREI magazine. We look forward to hearing from and seeing you from a safe distance.

NREI Staff

Top Stories

Finance & Investment

Some CRE Lenders Are Feeling the Squeeze on Liquidity

By Beth Mattson-Teig, Contributing Writer

One early trouble spot to surface is among highly-levered lenders who rely on short-term repurchase (repo) warehouse lines of credit with mark-to-market provisions to finance loans. A surge in margin calls sent lenders scrambling to raise needed cash, and, in some cases, is precipitating discounted loan portfolio sales.

FULL ARTICLE

Net Lease

How Will Net Lease Retail Assets Fare During and Post-COVID-19?

By Liz Wolf, Contributing Writer

For assets leased by essential service providers, the cap rates haven’t changed, says one market insider. “But if there’s any kind of hair on the deal… it’s not doing well.”

FULL ARTICLE

Investment

In Spite of Great Uncertainty, CRE Deals Continue to Close

By Elaine Misonzhnik, Executive Editor

While there has definitely been a greater sense of caution in the market and tampered down activity, data from Ten-X Commercial Real Estate, an online commercial real estate marketplace, shows that assets at its March auctions were still getting multiple bids and sales continued to close, especially on smaller balance deals of under $10 million.

FULL ARTICLE

Analysis

Office

The Tech Sector Looks Well-Positioned to Survive the Pandemic. It Might Still Cut Back on New Leases

By Patricia Kirk, Contributing Writer

As tech firms prepare for employees to return to the office, some are downsizing to cut costs or pausing expansion plans.

FULL ARTICLE

Alternative Properties

Single-Family Rental Sector Poised for Strong Rebound

By Sebastian Obando, Staff Writer

Some investors raise concerns on rental revenue and occupancy rates, but the sector should be well-positioned over the long term.

FULL ARTICLE

Multifamily

The Outlook for Class-C Apartments Is Muddied by Tenants' Loss of Income

By Bendix Anderson, Contributing Writer

While many tenants were able to pay rent in April, continuing shutdowns mean more federal assistance might be necessary to help workers forced to stay at home.

FULL ARTICLE

Gallery

REITs

Seven REIT Sectors That Could Be Positioned to Weather the Storm

By John Egan, Contributing Writer

NREI compiled a list of the REIT sectors that stand the best chance of weathering this economy, based on their total year-to-date returns and growth prospects.

FULL ARTICLE

Commentary

Office

The Office Market After COVID: Will It Be a Zero-Sum Game?

By Jahn S. Brodwin

With so many employees working remotely right now, will the demand for office space bounce back once the U.S. fully opens for business again? Given the magnetic forces at work that are both repelling and attracting tenants, the office market is caught between favorable and unfavorable outcomes in the short, medium and long term.

FULL ARTICLE

Podcast

Finance & Investment

NREI's Common Area, Episode 33

By NREI Staff

In this episode of NREI's Common Area Podcast, David Bodamer is recording safely from his home and has a guest on the line: Charles Krawitz, vice president and head of commercial lending at Alliant Credit Union. The two discussed how the lockdown is affecting commercial borrowers.

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NREI Wire

Mall Shoppers Are Scared to Return When U.S. Stores Finally Open

Bloomberg

Only one-third of Americans would feel safe shopping in a mall after store re-open, a recent survey shows.

FULL ARTICLE

Seven Must Reads for the CRE Industry Today

By NREI Staff

J.C. Penney is in advanced talks for bankruptcy funding, reports the Wall Street Journal. The Fed will keep interest rates at near zero until at least 2023, according to Business Insider. These are among today’s must reads from around the commercial real estate industry.

FULL ARTICLE