coronavirus Archives - REBusinessOnline

City of Chicago Implements Vaccine Requirements for Restaurants, Bars, Gyms

Kristin Harlow — Wed, 22 Dec 2021 14:36:11 +0000

CHICAGO — Chicago Mayor Lori Lightfoot has mandated that any individual 5 years of age or older will be required to show proof of full vaccination against COVID-19 in order to dine indoors, visit gyms or go to entertainment venues where food or drink are being served. The new requirement goes into effect starting Monday, Jan. 3. The initiative is in response to “an alarming rise in COVID cases both locally and nationally, driven in part by the Omicron variant,” according to the city. The requirement is similar to what is already in place in large cities such as New York City and Los Angeles. Patrons age 16 and older will also need to provide identification that matches their vaccination record. The city’s mask mandate also remains in effect for all public indoor settings. Chicago residents are now averaging more than 1,700 new COVID cases every day, a 79 percent increase from one week ago.

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Metro Orlando Office Market Caught in Limbo Due to COVID-19, Remote Workforce

John Nelson — Mon, 11 Oct 2021 11:37:46 +0000

Contrary to what is often portrayed in the national media, the Orlando office market is not a monolith. It instead comprises multiple submarkets, many of which are recovering quite differently. For example, according to data from CoStar Group, Winter Park had a 4.7 percent availability rate (that’s direct and sublease space combined). The Downtown Orlando market, on the other hand, had a rate of 16.9 percent. The total Orlando MSA office availability rate was 11.5 percent, which compares to the national rate of 16 percent. All of these numbers just prove that the recovery from the pandemic is uneven, even in areas in close proximity. It’s easy to get lost in analysis, but the basic answer is that the office market in Orlando, just like in the entire country, will recover in time. Not all areas will be on the same timeline, and the office market will never look entirely the same. Between working from home and companies deciding to relocate their offices or headquarters entirely, there will be some short-term winners and losers. Texas, for instance, is having a relative boom in new tenants. Los Angeles, and indeed California in general, on the other hand, is not. Many companies…

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Does Your Property Tax Assessment Reflect COVID-19’s Long-Term Challenges?

John Nelson — Thu, 16 Sep 2021 11:20:22 +0000

Countless companies have seen their top and bottom lines decimated by COVID-19-related shutdowns, travel restrictions and changing consumer preferences since the start of the pandemic. Yet for many taxpayers, property tax values have changed little or even increased. Many of these taxpayers have been surprised to receive property tax bills that do not reflect the real and lingering economic challenges that the retail, hospitality, office and other industries have, are and will continue to face. These taxpayers — and even those in industries better suited to weather the storm — should give special attention to ensuring they receive fair and reasonable assessments. Observe Valuation Dates, Notices and Appeal Deadlines With a large percentage of employees working remotely, together with an inconsistent postal service, it is more important than ever to have dedicated employees and knowledgeable property tax professionals reviewing property value assessments annually and filing timely protests when warranted. Failure to receive a tax valuation notice rarely excuses a missed protest deadline, so it is vital to know and comply with applicable deadlines. Many property tax bills issued in 2020 were based on statutory valuation dates that preceded the emergence of COVID-19. For instance, assessors working under a valuation date…

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Contractors Face Uncertain Materials Costs, Lull in Student Housing Activity Due to COVID-19

Katie Sloan — Tue, 14 Sep 2021 11:45:19 +0000

Rising construction materials costs have been one of the biggest stories of the pandemic era. When COVID hit, many factories ramped down production. In addition, some raw materials industries had challenges like tariffs, natural disasters and COVID-related slowdowns. When construction continued during the pandemic, supply suffered and pricing rose dramatically. This has been especially true for lumber and steel, but natural disasters in areas like Texas have even hampered the manufacturing of other goods, like appliances. Student Housing Business, sister publication to REBusinessOnline, spoke to six general contractors to get their take on the student housing sector at present, and to get their advice on what they are telling clients who are pricing projects for 2022 groundbreakings and beyond. SHB spoke with Arne Goldman, director of business development at Marous Brothers Construction; Marty Hoffey, business development manager at MW Builders; Emily Kessinger, business development manager, and Chris Harrison, executive vice president at The Weitz Company; Sean Studzinski, president of strategic initiatives at Modular Design+; and Sky Sanborn, executive vice president and chief operating officer of Broeren Russo Builders. SHB: How busy is your student housing pipeline? What projects have you recently built/completed? Goldman: We have some projects that are lined…

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After 18 Months, Seniors Housing Operators More Adept at Handling COVID-19 Crisis, Says InterFace Panel

John Nelson — Tue, 07 Sep 2021 11:30:17 +0000

ATLANTA — Seniors housing operators have been grappling the past 18 months with how to maintain their properties and keep occupancy high while also protecting their staff and residents, who are the most vulnerable population for infections and death from the COVID-19 outbreak. With the rise of the Delta variant in recent weeks, owners and operators are having to make tough decisions to care for their residents, although now they have built some muscle memory on how to operate effectively amid the pandemic. “We are better at dealing with COVID-19 now than before,” said Joe Jasmon, CEO and managing partner of American Healthcare Management. Jasmon added that alleviating the fear of COVID-19 and the Delta variant is a big part of an operator’s job, and bringing residents into their social programs is a major point of emphasis, even if it can only be done virtually. “There’s been a huge insurgence of Zoom calls,” said Jasmon. “Before it was once in a blue moon, and it would be a son or daughter who lived in Belize or somewhere. Now the entire family and friends are calling in. We have to cultivate that activity and encourage it.” Jasmon’s comments came during the…

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Canada to Reopen Border for US Travelers

Kristin Harlow — Mon, 09 Aug 2021 13:41:31 +0000

CANADA — Starting today, Monday, Aug. 9, Canada plans to begin allowing entry to American citizens and permanent residents that have been fully vaccinated at least 14 days prior to entering Canada for non-essential travel. This preliminary step enables the government of Canada to fully operationalize the adjusted border measures ahead of Sept. 7, when the government intends to open Canada’s borders to any fully vaccinated travelers. All travelers will use the ArriveCAN app or web portal to submit their travel information. Accepted vaccines include Pfizer, Moderna, AstraZeneca and Janssen. All travelers will still require a pre-entry COVID-19 molecular test result. Starting Aug. 9, fully vaccinated travelers will not need a post-arrival test unless they have been randomly selected to complete a day one COVID-19 test. This strategy enables the government to continue monitoring variants of concern in Canada and vaccine effectiveness, according to a news release.

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COVID Impacts Central Oregon’s Commercial Real Estate Market

Jeff Shaw — Tue, 03 Aug 2021 11:40:35 +0000

By Pat Kesgard, Compass Commercial Real Estate Services When COVID-19 hit Central Oregon in April 2020, commercial real estate transactions effectively came to a halt. Transactions were either delayed or canceled and virtually no new deals started. We were back to almost normal by the beginning of the third quarter of 2020. Miraculously, the fourth quarter was above the previous year’s activity. Hospitality The hospitality industry suffered tremendously through the pandemic. The labor shortage extended the challenge of operating at full capacity, and this is still impacting businesses today. Fortunately, landlord and government subsidies helped many in the industry survive. Retail Transactions in 2021 Compass completed more than 31 retail leases that totaled more than 85,000 square feet since January 1, 2021. The current retail vacancy rate is 5.86 percent with 264,077 square feet available for lease. We noted some softening in rents in 2020, and are now starting to see asking rates returning to normal. The redevelopment of older properties continues, along with new localized projects in areas outside of downtown Bend. We expect to see this trend continue for the unforeseeable future. Large retail spaces opened up when the former Sears and Shopko closed in 2020. Both buildings were eventually…

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How Retail Landlords Can Create Value for Tenants in the Post-COVID World

Taylor Williams — Tue, 27 Jul 2021 11:11:41 +0000

By Jonathan Fishman, co-founder, Bizydev Every business-oriented publication for the last 18 months has almost certainly churned out dozens, if not hundreds, of articles detailing how they believe COVID-19 will or has or might affect their market or industry. Real estate publications have exhaustively covered the deceleration of commercial office leasing, the population outflow in urban cities and corresponding battering of the multifamily market and the lack of business travel and tourism resulting in catastrophic conditions for the hotel sector. And of course, analysts and experts have been quick to note the sharp decline in physical retail space success thanks to the onslaught of e-commerce, further fueled by social distancing measures. Facing these challenges, many retail landlords have been forced to ask themselves what advantage they provide for their tenants. Given the realities of the commercial real estate market, landlords must explore ways to create value for their tenants and seek common ground with them to keep afloat. It’s no longer acceptable for landlords to just provide a storefront, a door and a raw space if they expect to be competitive in the retail leasing market today. They need to find new ways to market their spaces and highlight their…

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‘Power Panel’ at InterFace Event Provides Positive Outlook for Student Housing Sector Post-COVID-19

John Nelson — Thu, 15 Jul 2021 11:51:30 +0000

Moving toward the start of a fresh academic year, the outlook for the student housing industry keeps getting brighter. A testament to the industry’s movement out of the pandemic is taking place at the InterFace Student Housing conference in Austin, where nearly 1,300 attendees have been able to gather in-person for the first time since April 2019. This year’s event, which concludes today, is taking place at the JW Marriott downtown. The student housing sector banded together like never before in the face of COVID-19 and truly worked as a team throughout the pandemic, with the ultimate goal of keeping students as safe as possible. The sector’s resilience during the pandemic and optimism regarding the year ahead were the driving discussion points during the conference’s “Power Panel” on Wednesday, July 14, which brought together a consortium of high-level executives to discuss industry trends, their experiences with COVID-19 and the outlook for the upcoming academic year. “The past 18 months have been a whirlwind of uncertainty,” began moderator Peter Katz, executive director at Institutional Property Advisors, a division of Marcus & Millichap. “While our sector has been historically categorized as recession-resilient, we would all now claim it to be pandemic-resistant.” “Student…

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Chicago Market Experiences Surge in Retail Sales as COVID Restrictions Loosen

Kristin Harlow — Thu, 08 Jul 2021 11:45:48 +0000

By Chris Irwin, Colliers International As we begin to lower our masks, breathe fresh air and see smiles on everyone’s faces, there are strong signs that better than pre-COVID retail activity in Chicago is here. With the expanded vaccine rollout, a decrease in unemployment plus the added boost of stimulus checks, the surge in retail sales in the city and surrounding areas has been measurable. The demand for retail space increased in fourth-quarter 2020 and first-quarter 2021 significantly, with the first quarter recording a 650,000-square-foot increase in overall absorption, which pushed the trailing 12-month absorption back to positive territory — and its highest level since 2017. Increased leasing activity continued to drive new demand as net absorption totaled almost 1 million square feet in the first quarter. Vacancy in Chicago retail has flattened and currently is holding at 6.1 percent over the past year compared with a rate of 5.1 percent nationally. Leasing activity was driven by the expansion of essential retailers throughout the first quarter, similar to first-quarter activity levels registered in 2017, 2018 and 2019. However, the most important step toward recovery happened June 11 when the State of Illinois moved its Coronavirus response from Phase 4 to…

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Now that the Dust is Settling – The Future of Retail in a Post-Pandemic World

Jeff Shaw — Fri, 04 Jun 2021 12:00:46 +0000

By Carlos Lopez, Executive Vice President, Hanley Investment Group Real Estate Advisors The fears from the COVID-19 pandemic and the accompanying government-mandated shutdowns and social distancing measures transformed the way Americans, lived, worked, shopped, ate, exercised and watched movies. In many ways, the habits formed during the shutdowns have opened up opportunities to radically change many aspects of life. For the retail industry, the impact of COVID-19 in 2020 was profoundly devastating. For small businesses and restaurants forced to shut down for extended periods of time or quickly modify their business model to accommodate the mandated closures, they were unable to operate and many were forced to close permanently. On the chain retail front, already struggling from the changing consumer preferences and the forces of e-commerce, the lockdowns and mandated closures by governmental agencies was the final nail in the coffin for many. In 2020 alone, an unprecedented number of retailers declared bankruptcy and by November of 2020, nearly 49 chain and national retailers had declared bankruptcy. The amount was greater than retail bankruptcies occurring in 2009 during the financial crisis. Some of the popular retailers and household names of these retailers included: JC Penney, Neiman Marcus, GNC, Brooks Brothers, Sur la…

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Rethinking Student Housing Design in Response to COVID-19

Katie Sloan — Thu, 29 Apr 2021 11:45:59 +0000

When the world shut down over a year ago, architects, designers and developers took a collective pause to assess what needed to change in the built environment. A particularly scrutinous eye was paid to off-campus student housing, a sector whose successful model was based on bringing students together, not keeping them a safe distance apart. Some sweeping changes were recommended at the onset — many operational in nature, based on the latest guidance from health officials. As courses moved online and on-campus residence halls closed, off-campus communities emerged as a safe haven for students who did not want to — or were unable to — return home. The resilience of the sector, as evidenced last fall by pre-leasing rates and rents that were only slightly below 2019 levels, suggested the temporary tweaks made out of necessity in 2020 worked. The real question was whether those modifications would carry through to newly developed and renovated communities post-pandemic, and if so, what form they might take. Our firm took the time to reflect on how design must evolve to meet the changing needs and expectations of students, parents, operators and developers — all of which have different priorities. At the top of…

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Disneyland to Reopen California Amusement Parks on April 30

Amy Works — Mon, 12 Apr 2021 14:56:57 +0000

ANAHEIM, CALIF. — Disneyland Resort will reopen its theme parks Disneyland Park and Disney California Adventure Park on April 30, with limited capacity and more than 10,000 cast members. Additionally, Disney’s Grand Californian Hotel & Spa will welcome guests starting on April 29, as part of Hotels of the Disneyland Resort’s phased reopening. To comply with government requirements and promote physical distancing, various new measures are in place at the park, with the Disneyland Resort managing attendance through a new theme park reservation system that requires all guests to obtain a reservation for park entry in advance. Theme park reservations will be limited and subject to availability, and until further notice, only California residents may visit the parks. Groups must be no larger than three households, in line with current state guidelines. Disneyland’s phased reopening includes: Downtown Disney District – currently open Disney’s Grand California Hotel & Spa — April 29 Disneyland Park and Disney California Adventure Park — April 30 Disneyland Hotel and Disney’s Paradise Pier Hotel — to be determined Disneyland Resort will reopen and operate updated sanitization and distancing protocols, including enhanced cleaning and housekeeping modifications, plus operational changes for physical distancing and reduced contact. Guests planning…

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COVID-19 Changed the Way We Calculate Affordable Housing Property Taxes

Jeff Shaw — Tue, 06 Apr 2021 14:07:46 +0000

By Carlos Suarez, Popp Hutcheson After a pandemic year that decimated rental incomes, owners of affordable housing properties should prepare to protest property tax assessments that overstate their liability. As stay-at-home orders in 2020 forced businesses across the county to change their operations, a large portion of the labor force began to work from home. But many renters, including a large contingent of affordable housing residents, found themselves without jobs and struggling to pay rent. Job losses and other issues related to COVID-19 adversely affected tenants and property owners alike, straining rental income while adding the cost of new safety procedures and equipment to landlords’ operating costs. To reduce property tax liabilities and limit financial losses from the pandemic, it is now crucial for owners of affordable housing to correctly navigate procedures across jurisdictions and weigh all relevant valuation considerations for their properties. Here are key areas for affordable housing owners to consider in arguing for a lower assessment. Procedures have changed The global pandemic transformed interactions between appraisal districts and property owners throughout the 2020 tax year. Many appraisal districts across Texas closed their doors to the public and shifted formal and informal meetings to a virtual setting to…

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Evaluating the Volume of Distressed Properties in the Wake of COVID

Sarah Daniels — Wed, 31 Mar 2021 12:00:04 +0000

Many in commercial real estate expected a tsunami of COVID-related distressed properties in 2020 and 2021. So far, the wave hasn’t materialized, says Jay Olshonsky, president and CEO of NAI Global. Businesses have been sustained by exogenous factors that may or may not keep them from foreclosure or receivership in the long term. In many cases, lender forbearances or flexible plans have simply extended the window in which distressed properties may eventually revert to receivership. Olshonsky spoke to REBusinessOnline about receivership activity and what the industry expects over the next 12 months. Delays: Lessons from the Global Financial Crisis, Plus Current Factors As court-appointed receivers, NAI’s representatives act as the owner and operator of properties in foreclosure on behalf of the court. A receivership needs to have the capability to lease the property, pay taxes and handle accounting — basically, taking over all aspects of managing a property and keeping it functioning, Olshonsky says. Much of how NAI Global has chosen to approach the current receivership landscape originated in the lessons of the 2007-2008 financial crisis. During the early stages of the pandemic, NAI knew there would be fallout that would force some businesses into foreclosure, servicing, note sales or similar…

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Experiential Retail Adjusts for a Post-COVID Comeback

Katie Sloan — Thu, 18 Mar 2021 11:45:12 +0000

Shopping center owners thought the solution to combat online shopping was so crystal clear. Give them experiences. Provide social spaces. Make interaction the focal point. And this worked…for a while. Entertainment and food and beverage operators soon absorbed the spaces left behind by traditional retailers. Old Sears locations became luxury movie theaters. Vacant in-line spaces could be taken over by Instagrammable pop-up experiences. Mall kiosks that once sold tchotchkes could now be occupied by virtual reality pods. Even mall food courts were redesigned as food halls, a cooler, sleeker older cousin. Centers that created the right formula of fun, fashion and food were packed. It was all going so well until 2020. “All of us in the experiential business thought we were recession-proof,” says Bryan Severance, CEO of Fallout Zones, a family entertainment consulting and design firm in Las Vegas. “Even when the economy was down in 2008, people wanted to get out and have fun. The whole industry was building parks and experiences and making money. When the government tells you to shut down, though, it’s a totally different story. Turns out we’re not pandemic-proof.” Just as the experiential retail industry rode the high highs together, it is now…

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Student Housing Rounds COVID-19’s Twists and Turns, Light Shines at End of Tunnel

Katie Sloan — Tue, 16 Mar 2021 11:45:23 +0000

By Kevin Larimer and Brandon Buell, Berkadia Throughout the COVID-19 pandemic, confidence fluctuated around the performance and resilience of student housing properties. Understandably, commercial real estate investors pressed pause at the beginning of last year, as there was no way to know what this global pandemic meant for property performance. However, with steady collections for student housing throughout the year, confidence quickly regained. Towards the end of last year, occupancy was just shy of 90 percent and nimble investors who took notice started to pursue the available menu of opportunities. While data will show that COVID-19 had a clear impact on student housing operations, the level of disruption was limited. In fact, according to Berkadia research, sales during the fourth quarter accounted for more than half of 2020’s total transactions and dollar volume for student housing — further proving the overall resiliency of the industry. Strong Out of the Gate in 2021 In addition to ending 2020 on a strong note, only a few months into 2021, we have already seen the student housing market show greater strength. In fact, in the first few weeks of January alone, our student housing-specialized team at Berkadia completed nearly $250 million in the…

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Take Me Out to the Ball Game: Chicago Stadiums to be at 20 Percent Capacity on Opening Day

Kristin Harlow — Tue, 09 Mar 2021 14:54:08 +0000

CHICAGO — Chicago Mayor Lori Lightfoot announced plans to open Guaranteed Rate Field and Wrigley Field to White Sox and Cubs fans on each team’s Opening Day in April as part of the city’s “Open Chicago” efforts. The ballparks will be open at 20 percent capacity. Lightfoot evaluated capacity and restrictions in partnership with the Chicago Department of Public Health and the Major League Baseball Association. Last week, the mayor increased indoor capacity at bars, restaurants and other businesses to 50 percent, citing sustained progress in reopening metrics. Guranteed Rate Field, home to the Chicago White Sox on the South Side, normally seats just over 40,000 guests. The reopening capacity will be limited to 8,122 fans with at least six feet between parties. White Sox Opening Day is Thursday, April 8. Wrigley Field, home to the storied Chicago Cubs, has a normal capacity of 41,374 fans. It will be limited to 8,274 guests per game. Opening Day is scheduled for Thursday, April 1. According to the city, there is potential to increase capacity at the ballparks as vaccination and recovery efforts continue. In the same vein, a spike in COVID-19 cases could result in ballparks, bars, restaurants and businesses closing…

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Fry’s Electronics Permanently Closes Business Operations, Shuttering 31 Stores, Online Presence

Amy Works — Wed, 24 Feb 2021 16:02:37 +0000

SAN JOSE, CALIF. — San Jose-based Fry’s Electronics has decided to shut down its operations and close business permanently as a result of changes in the retail industry and challenges created by the COVID-19 pandemic. After nearly 36 years as a one-stop shop and online resource for high-tech consumers, Fry’s says it will implement a shutdown of its 31 stores across nine states through a wind-down process that will be in the best interests of the company, its creditors and other stakeholders. Fry’s ceased regular operations and began the closing process today. The intentions of the wind-down process are to reduce costs, avoid additional liabilities, minimize the impact to customers, vendors, landlords and associates, as well as maximize the value of the company’s assets for its creditors and stakeholders. Currently, Fry’s is in the process of reaching out to its customers with repairs and consignment vendors to help them understand the closing process and the proposed next steps.

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Marriott Posts First Annual Loss Since 2009 as COVID-19 Loomed Large in 2020

Julia Sanders — Thu, 18 Feb 2021 16:56:52 +0000

BETHESDA, MD. — Marriott International (NASDAQ: MAR) posted a net income loss of $267 million for 2020, which The Wall Street Journal reports is the hotel giant’s first annual loss since 2009. The company posted a net loss of $164 million in fourth-quarter 2020, which is a significant drop from its net income of $279 million in fourth-quarter 2019. The COVID-19 pandemic materially changed global traffic patterns for both leisure and business travelers in 2020, and Marriott’s hotels bore the brunt of the subdued demand for hotel rooms, as well as conventions and conferences. “With the global pandemic, 2020 was the most challenging year in our 93-year history,” says Stephanie Linnartz, Marriott’s group president of consumer operations, technology and emerging businesses. Linnartz, along with Tony Capuano, are overseeing Marriott’s day-to-day operations of corporate matters in the wake of president and CEO Arne Sorenson’s passing earlier this week. On April 14, 2020, the Transportation Security Administration (TSA) reported its lowest travel volume of only 87,500 passengers throughout all TSA checkpoints nationwide, representing just 4 percent of passenger volume recorded on the same weekday in 2019. Average travel volume per day between Thanksgiving and New Year’s Eve, which is typically TSA’s busiest…

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