AUSTIN, TEXAS — Texas gyms, offices and manufacturing facilities for nonessential goods may begin reopening at reduced capacities on Monday, May 18, pursuant to Texas Gov. Greg Abbott’s executive order outlining steps of the state’s economic restart. Operators of each of these facilities may reopen at 25 percent of their total listed occupancies. Offices with 20 or fewer employees can reopen with up to five staffers onsite should that number be greater than 25 percent of their total workforce. In addition, locker rooms and showers are to remain closed at gyms and exercise studios. This phase follows the permitted reopenings of salons and barbershops that went into effect on Friday, May 8. As of this morning, Texas had reported about 48,000 cases of COVID-19, according to data from Johns Hopkins University.
TERRE HAUTE, IND. — Out of the Box Ventures LLC has reopened its Haute City Center in Terre Haute within western Indiana. The following stores opened on Friday, May 15: Amazing Comfort, Buckle, Cellular Concepts, Dakota Watch, Encore-Shoe Dept, Finish Line, Francescas, Frontier, Glik’s, Hibbett Sports, Journey’s, LA Nails, Maxx E-Cig, Pizza diRoma, Second Cup Café, Seno Formal Wear, Shewey’s Paint Your Own Pottery, TGI Friday’s, TradeHome Shoes and Verizon Wireless. The 676,322-square-foot mall has reduced hours and limited entrances. The children’s play area, photo booths and massage chairs will remain closed. In the state of Indiana, the governor has allowed retail space to open at 50 percent capacity.
PORTLAND, ORE. — Oregon Governor Kate Brown approved reopening for 28 of 33 counties in the state on Friday, May 15. The counties, which met all of Oregon’s safety and preparedness prerequisites for reopening amid a declining prevalence of COVID-19, will begin Phase One opening. Additionally, all retail statewide was approved to open, except for shopping centers and malls in counties not entering Phase One reopening status. Retail businesses that are reopening must maintain social distancing and follow safety measures for employees and customers. In counties approved for Phase One reopening, the following areas can operate if the business complies with sector-specific health and safety guidance: Restaurants, bars and other such establishments for dine-in service until 10 p.m. Personal services businesses All retail businesses, including malls and shopping centers Gyms and other fitness facilities Local gatherings of up to 25 people The counties that have entered Phase One essentially include all those outside the Portland metro area. The state’s three largest Portland-area counties — Multnomah, Washington and Clackamas — did not apply to reopen on May 15, but are expected to apply in the coming weeks. In non-reopening counties, the following new guidelines took effect or remain in effect beginning …
PLANO, TEXAS — J.C. Penney Co. (NYSE: JCP) has filed for Chapter 11 bankruptcy protection in a bid to strengthen its finances through an extensive debt restructuring. The company filed on the evening of Friday, May 15 in the U.S. Bankruptcy Court for the Southern District of Texas, located in Corpus Christi. The Plano-based retailer has secured $900 million in debtor-in-possession financing from its existing first-lien lenders that is expected to knock several billion dollars off its total debt load. J.C. Penney, a company with a 118-year operating history, said that it would disclose in the coming weeks the number and locations of which stores would be closing. Currently, due to the coronavirus pandemic, about 40 of J.C. Penney’s approximately 850 U.S. stores are open, with another dozen or so offering curbside pickup only. In mid-March, the retailer began furloughing workers at its supply chain and distribution centers in response to the outbreak of COVID-19. Furloughs of store associates and corporate staff followed two weeks later. “While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to …
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.
NEVADA COUNTY, CALIF. — Nevada County has received approval from the State of California to move further into Stage 2 reopening related to the COVID-19 pandemic. Located east of Sacramento and just across the state border from Reno, Nevada, the county is among the first in California to receive approval of its readiness plan. County businesses are encouraged to prepare to safely reopen, if they fit into the Stage 2 sectors in the California Recovery Plan outlined in the Resilience Roadmap. Lower-risk workplaces that are outlined in the first step of Stage 2 include retail, childcare, manufacturing, logistics and essential businesses. An expansion of Stage 2 reopenings includes relaxed retail restrictions and the adaptation and reopening of schools, offices and limited hospitality and personal services. While schools are included in the next phase of Stage 2 reopenings, Nevada County does not anticipate schools reopening until August. Prior to reopening, each business must complete its industry-specific checklist for modifications and safety. Businesses must perform a detailed risk assessment and implement a site-specific protection plan; train employees on how to limit the spread of COVID-19, including how to screen themselves for symptoms and stay home if they have any symptoms; and implement …
The NAIOP CRE Sentiment Index — based on a survey of commercial real estate developers, owners, investors and service providers — has come in at 45 for the month of March, dropping from 57 in September 2019 to a number below 50 for the first time since its inception in 2016. The NAIOP Sentiment Survey is conducted semi-annually, in March and September. The survey is sent to roughly 10,500 NAIOP members in the U.S. who are developers, building owners, building managers, brokers, analysts, consultants, lenders and investors in the office, industrial, retail and multifamily sectors. If every participant in the survey selected the most optimistic answer to every question, the index would be 100. Conversely, if all of the participants chose the most pessimistic response to every question, the index would be 0. The survey was conducted against the backdrop of escalating concerns regarding the coronavirus (COVID-19) pandemic in mid-March. While a score below 50 typically indicates unfavorable conditions for commercial real estate over the next 12 months, the association believes that the current ranking of 45 is better understood as a commentary on present-day sentiment in the industry rather than a reliable predictor for future market conditions. Of specific …
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.
FRANKFORT, KY. — In the midst of the COVID-19 outbreak, Kentucky Gov. Andy Beshear has outlined plans for allowing clothing retailers, manufacturing, construction, houses of worship and funeral services to begin reopening Wednesday, May 20. Government offices and agencies will be allowed to reopen starting Monday, May 18. On May 11, Beshear said there were several parameters that needed to be met in order for the reopenings to occur, including 14 days of decreasing cases, increased testing capacity, availability of personal protective equipment (PPE) and preparedness for a possible future spike. Beginning May 22, restaurants will be able to operate indoor dining at 33 percent capacity and resume outdoor dining. Cosmetology businesses, hair salons and barbershops, massage therapy, nail salons, tanning salons and tattoo parlors will be able to open starting May 25. On June 1, bowling alleys, fitness centers and movie theaters will be permitted to reopen. Beshear urges Kentuckians to be “Healthy at Home” and follow local and federal protocols for limiting the spread of COVID-19. As of 5 p.m. Wednesday, Beshear’s office reported there were 326 deaths and 7,080 confirmed cases of COVID-19 in Kentucky.