- Painting with a broad brush can cause investors to overlook valuable opportunities
- Certain segments of the marketplace are still performing well, despite pandemic-driven challenges
- Trend toward de-densification is supporting Apartment and Office demand in the suburbs
- Further adoption of eCommerce is providing broad-based lift to Industrial facilities
- Even Hotels, the hardest hit segment, is seeing sustained operations for drivable destination assets
- The Retail market is also creating winners – Necessity-based tenants & grocery-anchored properties still strong
- Encourage clients to evaluate opportunities on an asset by asset basis – Don’t overgeneralize
National Retail Outlook – Beyond the Health Crisis Special Report
Impact of Shutdown Reflected in 2Q Retail Fundamentals; Some Bright Spots Come into Focus
Stimulus and fewer operating restrictions propelled retail metrics during the past two months. At the end of the second quarter, retail sales had nearly returned to pre-health crisis levels as the central bank and federal government flooded the economy with liquidity. Nonetheless, property operations are weakening and the damage of a economic shutdown may not be reflected in vacancy for several quarters.
Key Features Include:
- Grocery-anchored centers performing better than the market as a whole
- Malls look for a reset as thousands of stores permanently close
- Consumers increasing cart size, decreasing visits in many cases
National Hospitality Outlook – Beyond the Health Crisis Special Report
Small Market and Affordable Hotels See Gains Along Sector’s Long Road to Recovery
Hotel occupancy and revenue improve weekly but the health crisis’s disruption to travel patterns has inverted normal demand dynamics. Properties in small, scenic drive-to destinations are outperforming hotels in major cities. The interruption to income and limited capital liquidity has slowed transaction activity but pricing terms will become clearer as additional assets change hands.
Key Features Include:
- Examination of the hotel recovery across the top lodging markets
- Breakdown of the current supply pipeline
- Evaluation of current federal measures in support of the hospitality sector
National Multifamily Outlook – Beyond the Health Crisis Special Report
Federal Unemployment Helped Jobless Renters Meet Obligations, Though Multifamily Faces Greater Challenges as Support Wanes
Rent collections held firm in the second quarter despite high unemployment as government stimulus mitigated the impact, yet the expiration of these benefits could weigh on multifamily. The largest adjustment to fundamentals came from the Class A segment, as supply additions imposed additional headwinds. Lower-tier space has been more resilient, but vacancy could be nuanced by eviction moratoriums.
Key Features Include:
- Analysis of the multifamily environment with less federal support
- Insight into shifting renter preferences and how suburban apartments could benefit
- Evaluation of potential population migration trends to secondary and tertiary markets
National Industrial Outlook – Beyond the Health Crisis Special Report
Industrial Sector’s Outlook Strengthened by 2Q Performance, Growing Collection of In-Place Demand Drivers
Trends accelerated by the health crisis and improvements to factory production and import/export volumes fueled tenant demand for industrial space during the second quarter. Positioned to record increased demand for available space as the year progresses, the sector’s stability has motivated investors to pursue industrial assets over other property types.
Key Features Include:
- Health-crisis driven trends that have bolstered demand for warehouse space
- Leading markets for industrial deal flow during the pandemic
- Metro specific breakdown of industrial property performance in the 2Q
National Medical Office Building Outlook – Beyond the Health Crisis Special Report
Medical Office Facing Unique Challenges from Reduced Visits, Though Growing Healthcare Needs Bolster the Sector
Restrictions on elective surgeries and the voluntary delay of non-emergency visits to doctors’ offices, dentists, and dermatologists have weighed on operations, contributing to job losses and furloughs. Despite the short-term costs, the healthcare industry will be one of the quickest to bounce back from the pandemic since the care needs of a growing and aging population continue to increase.
Key Features Include:
- Analysis of medical office property performance
- Insight into the current investment climate
- How telehealth and decentralization impact the sector