WASHINGTON, D.C. — In response to the COVID-19 outbreak, the Internal Revenue Service (IRS) is expected to grant extensions to the 45-day identification period and 180-day purchase period that applies to commercial real estate investors seeking to transact via 1031 exchanges. The expectation that an extension will be granted is supported by Legal 1031 Exchange Services, a New York-based law firm specializing in this type of transaction. The firm is one of several trade groups that has pushed Treasury Secretary Steven Mnuchin to make an official announcement on the subject. Historically, extensions for both periods have been 120 days in length. The IRS has already extended the deadline for filing federal income taxes for 2019 to July 15, 2020 in response to the pandemic.
WASHINGTON, D.C. — A recent report from the U.S. Travel Association found that travel spending is down 85 percent from this time last year due to the worldwide coronavirus (COVID-19) outbreak. The week ending April 4 saw $3.3 billion in spending, down from $21.9 billion the same week a year ago. The U.S. Travel Association says that with now five weeks of evident COVID-19 impact, the U.S. travel economy has lost $60.8 billion. More than $36 billion (60 percent) of these losses have been realized in the past two weeks. With the shared decrease in spending, the organization expects that 5.9 million travel-related jobs will be lost by the end of April. Southwest Airlines says it will cut flights by up to 50 percent in June. Furthermore, American Airlines has said it will cut 80 percent of its flights in May and cut its international summer flights by 60 percent. As of this writing, there were 547,627 confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU). The U.S. Travel Association is a nonprofit organization representing the travel industry, such as airlines, cruise lines, buses, rail transportation, museums, amusement parks and state tourism offices, which generates …
WASHINGTON, D.C. — National Retail Federation (NRF) CEO and president Matthew Shay issued a statement saying the organization is pleased with the measures the Federal Reserve Bank and Treasury Department have taken to help businesses that are short on liquidity due to the coronavirus (COVID-19) pandemic. On Thursday, the Federal Reserve, along with Secretary of Treasury Steve Mnuchin, said it will finance up to $2.3 trillion to aid small- and mid-size businesses that are struggling due to the pandemic. The Fed said $600 billion will go toward buying the loans of the businesses and $500 billion will buy state municipal bonds. “As part of the next round of liquidity support for U.S. businesses, (Thursday’s) release by the Federal Reserve Bank of new term sheets is a welcome development,” said Shay. “By strengthening the efficiency of the Paycheck Protection Program (PPP) and clarifying terms to speed relief to small- and mid-market businesses through the Mainstreet Lending Program, the government is making great progress toward quick action with both clarity and guidance.” While Shay commends the government for its timely response to the pandemic, he says there is still work to be done to continue helping retailers, mainly when it comes to …
WASHINGTON, D.C. — The U.S. Census Bureau has reported that four of the 10 fastest growing metropolitan areas in the United States from 2010-2019 are in the Southeast. Atlanta is No. 4 with 733,646 new residents since 2010, according to the U.S. Census Bureau’s July 1, 2019 population estimates, which were released in late March. Washington, D.C., is right behind the Georgia capital at No. 5, with 630,799 new residents, and Miami comes in at No. 6 with an increase of 600,214 people. Orlando claimed the ninth spot with 473,748 people added since the turn of the decade. Dallas and Houston are the fastest growing metros with 1.2 million and 1.1 million people added, respectively. Phoenix rounds out the top three with 755,074 people added. As far as percentage growth by metro, the Southeast claimed four of the top 10 spots again, with The Villages, Fla., growing by 41.7 percent since 2010. Myrtle Beach, S.C., is No. 2 with 32 percent growth; Fort Myers, Fla., is No. 8 with 24.5 percent growth; and Raleigh, N.C., rounds out the top 10 with 23 percent growth.
WASHINGTON, D.C. — The U.S. economy lost 701,000 jobs in March due to the effects of the novel coronavirus and the efforts nationwide to slow the coronavirus pandemic. Additionally, the unemployment rate rose 90 basis points to 4.4 percent, the Bureau of Labor Statistics (BLS) reported. Employment in leisure and hospitality fell by 459,000, mainly in food services and drinking places (-417,000). The hospitality sector was hit hardest due to many states issuing stay-at-home orders, airlines canceling flights and conferences nationwide being canceled or postponed indefinitely. Notable declines also occurred in healthcare (-43,000), social assistance (-19,000), professional and business services (-52,000), retail trade (-46,000), and construction (-29,000). Employment in the federal government rose by 18,000 in March, including 17,000 temporary workers for the 2020 United States Census. The change in total nonfarm payroll employment for January was revised down by 59,000 from 273,000 to 214,000. The change for February was revised up by 2,000 from 273,000 to 275,000. As of this writing, Johns Hopkins University (JHU) reports there are 245,601 confirmed cases of COVID-19 in the U.S. and 6,058 deaths. The number of confirmed cases is up 30.5 percent from 188,200 as of Monday, March 30. The latest job figures …
WASHINGTON, D.C. — In the April issue of the National Retail Federation’s (NRF) Monthly Economic Review, NRF chief economist Jack Kleinhenz says in order to see the economy bounce back from the coronavirus pandemic, the country must first “get the virus under control.” The Associated Press reported Thursday morning that U.S. unemployment claims hit 6.6 million for the week ending March 28, doubling that of the 3.3 million claims filed in the week ending March 21. “How quickly the country gets a handle on containing the virus will determine the degree of the impact on the economy and how soon businesses can reopen,” Kleinhenz wrote in the report. The NRF report highlighted that leaving 2019, the gross domestic product (GDP) was growing at 2.1 percent clip year over year and that the U.S. economy benefits from sound fundamentals, unlike during the Great Recession. “Once the pandemic is over, we hope we will find that there is nothing structurally wrong with the economy and that any deficiencies were solved by monetary and fiscal policies,” Kleinhenz said. Washington, D.C.-based NRF has advocated for retailers and policies for more than 100 years.
WASHINGTON, D.C. — The American Hotel and Lodging Association (AHLA) has launched “Hotels for Hope,” a new initiative that aims to connect participating hotels with the health community struggling to find housing and support as the COVID-19 public health crisis grows. Washington, D.C.-based AHLA has identified more than 6,500 properties nationwide that are can work with the U.S. Department of Health, Human Services (HHS) and the U.S. Army CORPS of Engineers to provide access to hotel properties to support the health community and our nation’s first responders and local emergency management and public health agencies. Due to the COVID-19 outbreak, the hotel industry is seeing vacancy rates soar across the United States, with some markets, including Boston, Seattle and Austin, reporting more than 80 percent vacancy. Markets including Chicago are reporting single-digit occupancy rates. More than 4 million hotel jobs could be lost in the coming weeks, according to AHLA. In mid-March, the U.S. Travel Association and AHLA requested $150 billion from the federal government for economic relief as the travel sector is especially affected by the coronavirus. AHLA is working to establish a national database with the HHS so that local, state and federal officials will be able to …
WASHINGTON, D.C. — Freddie Mac and Fannie Mae have separately announced nationwide initiatives to provide financial relief for their multifamily borrowers and tenants affected by the outbreak of coronavirus disease of 2019 (COVID-19). The two government-sponsored enterprises are enacting programs that allow their borrowers to defer monthly payments for up to 90 days by showing hardship as a consequence of COVID-19 and by gaining lender approval. Additionally, participants in the program must agree to not evict their renters who are facing financial hardship due to the current health crisis. The agencies anticipate the initiatives could impact more than 54,000 apartment communities across the country. “This program is historic in its size, and it has the potential to provide relief to millions of families in multifamily rental homes financed through a Freddie Mac loan,” says Debby Jenkins, executive vice president and head of Freddie Mac Multifamily, which implemented a similar forbearance plan in 2017 following Hurricane Harvey in Houston. “Countless Americans are facing unimaginable hardships, and Freddie Mac is doing what we can to provide relief as our nation addresses this global pandemic,” says Jenkins. The outbreak of COVID-19 is likely to push the United States into a recession as the …
WASHINGTON, D.C. — The Society of Industrial and Office Realtors (SIOR) has launched a nationwide program to help nonprofit organizations remain open and operating in the midst of the worldwide COVID-19 outbreak. The Community Assistance and Relief in Emergencies (CARE) program will help get charities and nonprofits in touch with local SIOR members to share the organization’s contact information, circumstances and needs. The SIOR member can then provide real estate advice, contacts and, if applicable, direct the organization to a property owner(s) that can help accommodate the group’s needs. Through this initiative, SIOR hopes that organizations searching for a commercial real estate space can quickly get up and running. “Our organization was founded during World War II with the goal of assisting the United States government in fulfilling critical space needs,” says Mark Duclos, SIOR global president. “Today, we are in a new global crisis, one that calls upon all of us to do our part. There has never been a more important time to use our knowledge, resources and network to help our nation get through this together.” Organizations interested in getting in contact with CARE can do so at www.sior.com/care.
WASHINGTON, D.C. — Novel Coworking has opened Novel Coworking Dupont Circle, a 12-story, 190,385-square-foot office building in northwest Washington, D.C. The company acquired the building, situated at 1201 Connecticut Ave. NW, in July 2019. The space can accommodate one- to 200-person teams. Situated two blocks from Dupont Circle, the building was originally developed in 1940. Memberships start at $199 per month, private offices start at $575 per month and office suites start at $399 per employee a month. Chicago-based Novel Coworking operates 37 locations nationwide.