WASHINGTON, D.C. — The National Retail Federation (NRF) has shown its support for the Pandemic Risk Insurance Act (PRIA), a proposed bill that would establish a federal program to help businesses obtain insurance coverage for future pandemics. PRIA is based on a model of the Terrorism Risk Insurance Act (TRIA), which was enacted following the attacks of Sept. 11, 2001, and grants companies the ability to get insurance money from a terrorist attack. “The development of a public-private partnership to address this risk will provide certainty for businesses and organizations of all sizes and will ensure that we can meet future pandemic events with greater resilience,” says NRF vice president for government relations, banking and financial services Leon Buck. The bill was written with input from Washington, D.C.-based NRF, which says the potential funding would only cover future pandemics and not provide coverage for the current COVID-19 outbreak. The funding would reimburse insurers when claims related to a pandemic or epidemic exceed $250 million nationwide. Coverage would also be required for large gatherings, ranging from sporting events to concerts to conventions, that are canceled. The program would be capped at $750 billion. The bill has been assigned to the House Financial …
WASHINGTON, D.C. — COVID-19 has continued to impact the U.S. economy as an additional 2.4 million Americans filed first-time unemployment claims in the week ending May 16, the U.S. Department of Labor reports. Since mid-March, 38.5 million people have filed first-time claims. The number for this week was inline with what economists surveyed by Dow Jones expected when they forecast 2.4 million claims. The latest number is a decrease of 249,000 claims from the week ending May 11, which was revised down from its original figure by 294,000 to nearly 2.7 million. The four-week moving average is just over 3 million claims, down by 501,000 from the previous four-week moving average. Despite the number of claims rising overall, the weekly figure has lessened for seven consecutive weeks, the Department of Labor found.
WASHINGTON, D.C. — The American Hotel & Lodging Association (AHLA) has released what it called a “Roadmap to Recovery” for the hotel sector in the United States. In the document, AHLA notes that the April jobs report issued by the U.S. Bureau of Labor Statistics (BLS) says the hotel industry was hit the hardest of any sector tracked, losing 7.7 million jobs. The AHLA wrote a letter on behalf of its members to the U.S. Congress urging it to prioritize hotel workers and small businesses during the next stimulus package and to provide immediate assistance in four areas: help hotels retain and rehire employees by extending the Paycheck Protection Program, (PPP) offering employees direct tuition assistance or tax credits and expanding the Employee Retention Credit; protect employees and guests through tax credits for cleaning equipment and personal protective equipment (PPE); keep hotel doors open by providing relief for hotel commercial mortgages and increasing the size and flexibility of PPP loans; and incentivize Americans to travel again when it’s safe with a new, temporary travel tax credit and restoring the entertainment business expense deduction. “The hospitality industry is in a fight for survival,” says Chip Rogers, president and CEO of Washington, D.C.-based …
WASHINGTON, D.C. — Vogel Realty has voluntarily implemented plans to install new heating and air conditioning systems designed to minimize airborne viruses and bacteria at Chelsea Gardens in Washington, D.C. The 105-year-old mixed-use building has been closed since D.C. Mayor Muriel Bowser announced stay-at-home orders for the District. Vogel Realty also plans to install handwashing stations and anti-microbial surfaces in the building before it can reopen on Saturday, May 30. The new HVAC systems will limit airflow between workspaces, bring more fresh air into units and neutralize viruses and bacteria. Chelsea Gardens was originally built as an office building in 1905 and was renovated 20 years ago to include retail and residential space.
Despite 16.4 Percent Drop in April Retail Sales Amid Pandemic, NRF Says Industry Remains ‘Resilient’
WASHINGTON, D.C. — Retail sales plummeted 16.4 percent in April, according to the U.S. Census Bureau. However, the sharp drop “was not a surprise” to the National Retail Federation (NRF) due to the government-mandated shutdown of huge swaths of the American economy starting in mid-March. “The vast majority of retail stores have been closed, we are in the midst of historic unemployment and when it comes to personal finances, discretionary spending takes a back seat to essentials,” Matthew Shay, president and CEO of the Washington, D.C.-based trade association, stated in a press release. “Prior to this pandemic, retail was setting records in year-over-year growth, employment and investment. It is a resilient industry serving a smart consumer, and despite today’s report, we know it will be leading our nation’s economic recovery as this crisis recedes,” added Shay. The monthly report generated by the U.S. Census Bureau is a measure of purchases at stores, gasoline stations, restaurants, bars and online. The double-digit drop in April retail sales follows a revised 8.3 percent drop in March sales. Total spending in April was $403.9 billion compared with $483.5 billion the prior month, according to the U.S. Census Bureau. One of the biggest factors contributing …
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 …