WASHINGTON, D.C. — The National Multifamily Housing Council (NMHC) released data this morning showing that 87.7 percent of apartment households paid their May rent as of Wednesday. Though the rate is 2.1 percent lower year-over-year, it is a 2.7 percent increase from April. Last week, the NMHC Rent Payment Tracker found 80.2 percent of apartment households paid their May rent as of May 6. “Once again, despite the economic and health challenges facing so many, we have found that apartment residents who live in professionally managed properties are meeting their obligations,” says Doug Bibby, president of NMHC. The NMHC Rent Payment Tracker metric provides insight into changes in resident rent payment behavior over the course of each month, and, as the dataset ages, between months. The NMHC surveyed management companies responsible for 11.4 million units nationwide. There are 21.4 million apartments, in buildings with more than five units, according to the most recent American Community Survey from the U.S. Census Bureau. NMHC’s data does not track affordable housing units or units under control of smaller landlords.
WASHINGTON, D.C. — An additional 2.9 million Americans filed for first-time unemployment for the week that ended May 9, the U.S. Department of Labor reported. Since mid-March, 35.9 million Americans have filed jobless claims due to the COVID-19 outbreak. Economists surveyed by Dow Jones expected a slightly smaller total of 2.7 million claims. Even though the volume of claims are rising overall, the weekly amount has lessened for six consecutive weeks, the Department of Labor found. The four-week moving average was 3.6 million, which is a decrease of 564,000 from the previous week’s revised average.
WASHINGTON, D.C. — CoStar Group Inc. (NASDAQ: CSGP) has agreed to purchase Ten-X for $190 million. The all-cash deal is expected to close in the third quarter of this year. Irvine, Calif.-based Ten-X was launched in 2009 with the goal of providing a digital platform to complete commercial real estate transactions during the Great Recession. Since its founding, nearly $24 billion worth of commercial real estate transactions have been completed on the site. Companies such as Fannie Mae, Bank of America, JP Morgan Chase, Blackstone, Starwood, BlackRock, Capital One, MetLife, LNR, UBS and PNC have used the website to complete transactions. CoStar hopes the acquisition will position the combined company as a major player in the distressed commercial property market that COVID-19 is expected to leave in its wake. “We believe that the volume of distressed properties coming to market will surge and that this combined platform will support the market’s recovery,” says CoStar CEO Andrew Florance regarding the acquisition. Echoing Florance’s sentiment, Ten-X CEO Steve Jacobs says, “Just like CoStar Group, we are focused on driving volume and efficiency and have devoted ourselves to addressing the massive, untapped demand for digital commercial real estate solutions. We see significant demand …
WASHINGTON, D.C. — In the midst of the COVID-19 pandemic, Peterson Cos. has unveiled its plans for welcoming back tenants and customers, once permitted to do so. Peterson owns and operates open-air, mixed-use and power center properties. The company will implement the plan across several of its properties, including at National Harbor, Downtown Silver Spring, Rio in Gaithersburg, Fairfax Corner and Fair Lakes. Virginia Gov. Ralph Northam says he wants to slowly begin reopening retail businesses in the state, but he will allow northern Virginia to move at its own pace given the elevated number of COVID-19 cases in the region. Maryland Gov. Larry Hogan allowed the reopenings of parks and public spaces last week, but has not yet released guidelines on retail businesses. Washington, D.C. Mayor Muriel Bowser also released guidelines for residents to participate in outdoor activities but not retail-specific guidelines. Some of the new operations that the shopping centers will implement include hand sanitizing stations located throughout centers, especially in high-traffic, high-touch areas such as elevator lobbies, breezeways, restrooms, outdoor plazas and gathering areas; social distancing signage will remind customers and employees to stay six feet apart; curbside pickup areas will remain throughout the properties and will …
WASHINGTON, D.C. — The U.S. economy lost 20.5 million jobs in April, according to the Bureau of Labor Statistics (BLS), as the COVID-19 outbreak continued to wreak havoc. The leisure and hospitality sector was particularly hard hit, losing 47 percent of its workforce in April. The BLS also reports the unemployment rate jumped from 4.4 percent in March to 14.7 percent in April, the highest since February 2011. The total number of jobs lost is the highest since records began in 1939. The leisure and hospitality sector lost 7.7 million jobs in April compared with a loss of 2.5 million jobs for the education and health services sector, the next hardest hit segment. Retail trade lost 2.1 million jobs with the heaviest losses coming in the clothing and clothing accessories stores (minus 740,000). Similarly, the professional and business services segment lost 2.1 million jobs. The BLS also noted that the number of people out of work but seeking employment in April was 9.9 million, nearly double the prior month. As alarming as the labor numbers were for April, they were better than expected. Economists from the Wall Street Journal had collectively forecast a loss of 22 million jobs. The BLS …
First-Time Unemployment Claims Continue to Rise as 33M Americans File for Assistance Since Mid-March
WASHINGTON, D.C. — As the COVID-19 pandemic continues to affect the U.S. economy, nearly 3.2 million Americans filed first-time unemployment claims in the week ending May 2, the Department of Labor reports. Since mid-March, 33 million citizens have filed for first-time unemployment. The Department of Labor also reports that, despite the overall rise in claims, the week-to-week numbers have declined for five consecutive weeks. The most recent figure shows 677,000 fewer claims than the week ending April 25. The four-week moving average was nearly 4.2 million, a decrease of 861,500 from the previous week’s revised average. As of this writing, there were 73,431 deaths and more than 1.2 million confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).
WASHINGTON, D.C. — The National Retail Federation’s (NRF) chief economist Jack Kleinhenz says that as some states begin reopening stores and other businesses, the national economy’s recovery will likely be a gradual process and vary by location. “Getting back to work or shopping in a pre-virus manner is difficult to predict at this time, with households likely to tiptoe back in rather than making an immediate return to the lives they experienced before,” Kleinhenz said in the May issue of NRF’s Monthly Economic Review. “My overall impression is that the recovery will have fits and starts among states, regions and cities depending on the severity of the pandemic in their localities.” The NRF reports that retail sales saw their worst month-over-month drop on record in March, falling 8.7 percent from February. Consumer spending fell an annualized 7.6 percent during the first quarter, the largest drop since the second quarter of 1980. Consumer confidence hit 86.9 percent in April, the lowest since 2014, according to the Conference Board’s Consumer Confidence Index. Even through the decreasing confidence, Kleinhenz says most people expect to see a rapid recovery. “The gap between opinions on current and future conditions indicates that consumers expect a V-shaped …
WASHINGTON, D.C. — The American Hotel & Lodging Association (AHLA) has released its “Stay Safe” cleaning standards initiative. AHLA rolled out the guidelines to aid hotel chains that are reopening during the COVID-19 pandemic. The Washington, D.C.-based organization created the standards with help from an advisory council comprising industry leaders and public health experts. The initiative encourages the use of cleaning products that have a concentration of bacteria-killing ingredients, in accordance with the Centers for Disease Control and Prevention (CDC). Participating hotel chains will also train staff on safety and sanitation in regard to COVID-19. “Safe Stay was developed specifically to ensure enhanced safety for hotels guests and employees,” says Chip Rogers, president and CEO of AHLA. “While hotels have always employed demanding cleaning standards, this new initiative will ensure greater transparency and confidence throughout the entire hotel experience.” In April, Hilton Hotels and Marriott International unveiled their own protocols for enhancing guest and employee safety.
WASHINGTON, D.C. — LoopNet Inc. has launched CoTour, a virtual way for tenants, owners and brokers to browse commercial space in real time. CoTour can host a LoopNet member and up to 20 non-members at a time, giving all participants an opportunity to see the space and discuss with the others in the private meeting room. CoTour pulls its content from 3D virtual tours, HD video tours, aerial drone videography and architectural photography already existing on LoopNet listings. Washington, D.C.-based LoopNet’s marketplace covers all commercial property categories, including office, industrial, retail, apartments, hotel, land, specialty properties and investment properties. Due to the COVID-19 pandemic, 6.4 million tenants virtually toured properties on LoopNet in April, which is up 61 percent from the prior month.
WASHINGTON, D.C. — Walker & Dunlop Inc. has provided a $2.4 billion Fannie Mae loan to refinance a 67-property multifamily portfolio in the Washington, D.C., metro area. The borrower is Virginia-based multifamily owner and manager Southern Management Corp. (SMC). The portfolio includes 22,439 units in total, more than 60 percent of which qualify as affordable housing. The loan package features staggered maturities across a mix of fixed- and floating-rate, full-term, interest-only financing. “This $2.4 billion Southern Management transaction gave us the opportunity to partner with one of our top DUS lenders, Walker & Dunlop, using the credit facility, one of our most flexible financing products, to structure a winning solution for the borrower while delivering affordability to the Washington, D.C.,” says Jeffery Hayward, executive vice president of multifamily at Fannie Mae. The loan represents the largest transaction in Walker & Dunlop’s history, according to a statement from the company. “Walker & Dunlop’s creativity, tenacity and market knowledge resulted in a superior execution for this large and complex transaction amidst the uncertainty of a rapidly unfolding financial and health crisis,” says Suzanne Hillman, president and CEO of SMC. Brendan Coleman, Chris Forte and Connor Locke led a Walker & Dunlop team …