AUSTIN, TEXAS — Texas Gov. Greg Abbott on Tuesday provided an update on the state’s unemployment situation, noting that there are nearly 500,000 jobs currently listed on workintexas.com, a job board and resource center that was developed by the Texas Workforce Commission. According to the governor’s presentation, more than 1.5 million Texans have filed for unemployment as a result of COVID-19, and the state has disbursed more than $.14 billion in unemployment benefits. Gov. Abbott also cited specific companies and industries that are hiring on regional bases. He noted that large tech and healthcare providers like Amazon and Baylor Scott & White are hiring in Central Texas, while aerospace and defense firms like Lockheed Martin are hiring in North Texas and manufacturing and biomedical companies, including paper products producer Georgia Pacific, are hiring in East Texas. The governor also pointed to Texas-based grocers H-E-B and Randalls as sources with high numbers of job openings.
ATLANTA AND COLUMBIA, S.C. — Georgia Gov. Brian Kemp and South Carolina Gov. Henry McMaster each held press conferences Monday afternoon to announce how their respective states will begin reopening certain aspects of their economies. Kemp said several retail categories in Georgia can begin reopening on Friday, April 24. The types of businesses include gyms, fitness centers, bowling alleys, body art studios, barbers, hair and nail salons, estheticians and massage therapists. Theaters and restaurants can reopen beginning on Monday, April 27. The governor’s mandate states that local ordinances cannot block the reopenings. Kemp issued a Stay-at-Home order for all Georgians that will expire April 30 and a public health emergency that will expire May 13. As of noon Monday, Kemp said there were 18,947 COVID-19 cases in Georgia with 733 deaths. McMaster said some retailers in South Carolina, such as those selling furniture, books, music, flowers, clothing and accessories, as well as department stores, sporting goods stores and flea markets, can begin reopening immediately at 20 percent capacity, or five people per 1,000 square feet. Additionally, South Carolina beaches can reopen today at noon. As of Monday afternoon, South Carolina had 4,377 confirmed cases of COVID-19 with 120 deaths.
WASHINGTON, D.C. — Global declines in demand brought on by the COVID-19 outbreak caused prices for U.S. crude oil to fall into negative territory on Monday for the first time since the commodity’s futures contracts began trading in 1983. The descent into negative prices essentially means that suppliers must pay to have product purchased from them. Despite recent agreements by major oil-producing nations to undertake supply cuts, evaporated demand for travel and transportation services has contributed to a supply glut that has producers scrambling to store excess inventory. The price decline came to a head on Monday as the May contract for oil futures approached its expiration date, prompting a major selloff that sent prices for West Texas Intermediate (WTI) downward by more than 100 percent to negative $37.63 per barrel. However, the June futures contract for WTI, which is considered the benchmark product by which American oil markets are measured, is currently trading above $20 per barrel, reflecting a stronger outlook for that month in terms of demand. Texas has been producing record amounts of oil in recent years, even as prices hovered between $40 and $70 per barrel in the years following the slump that began in late …
ROYAL OAK, MICH. — Beaumont Health says that the financial consequences of the COVID-19 pandemic has forced the organization to adjust its workforce after suffering significant losses during the first quarter. After Beaumont began caring for COVID-19 patients five weeks ago, nearly all inpatient and outpatient surgeries and other non-COVID-19 medical services had to be halted. As a result, Beaumont is temporarily laying off 2,475 of its 38,000 employees. It is also permanently eliminating 450 positions and cutting executive pay. CEO John Fox will take a 70 percent temporary pay cut to his base salary. The other members of Beaumont’s executive leadership team will also take temporary pay cuts up to 45 percent of their total compensation. Of the 2,475 layoffs, most involve hospital administrative staff and others who are not directly caring for patients. Most of the 450 position eliminations are part of the corporate staff or serving in other administrative roles. Beaumont will also pause or cancel some nonessential projects. For the first three months of 2020, Beaumont reported a net operating income of -$54.1 million, a $91.7 million decrease compared to the same time last year. The Royal Oak-based nonprofit hospital is Michigan’s largest healthcare system. It …
WORTHINGTON, MINN. — In response to the COVID-19 pandemic, JBS USA has indefinitely closed its pork production facility in Worthington in Southwest Minnesota. The facility employs more than 2,000 workers and processes 20,000 hogs per day. JBS will wind down operations over the next two days with a diminished staff in order to ensure existing product in the facility can be used to support the food supply. The company will advise its Worthington team members to follow Gov. Tim Walz’s stay-at-home order until returning to work. JBS will continue to pay its team members during the plant closure. JBS operates more than 60 meat, poultry and prepared foods facilities across the country. As of Monday, April 20, there were 2,470 confirmed cases of COVID-19 and 143 deaths in Minnesota, according to the Minnesota Department of Health.
The impact of the coronavirus (COVID-19) is being felt across every facet of the student housing industry. On and off campus, owners and operators have grappled with the cancellation of in-person classes and administrative orders by universities for students to vacate campus entirely in hopes of slowing the spread of the virus. As the situation continues to escalate, many in the industry are wondering what the virus’ impact will be on the months ahead and on the upcoming academic year. On Friday, April 17, Student Housing Business (SHB) released a complimentary webinar sponsored by Pavlov Media, during which four CEOs from top companies in student housing provided their perspective on the impact of COVID-19 on the industry. The discussion was led by Rich Kelley, publisher of SHB, with speakers including Wes Rogers, president and CEO of Landmark Properties; Rob Bronstein, president and founder of The Scion Group; Peter Stelian, CEO of Blue Vista Companies; and Christopher Merrill, co-founder and CEO of Harrison Street. April Rent Collections Despite mounting concerns over the impact the cancellation of in-person classes might have on rent collections, all four CEOs reported at least 90 percent of rent payments collected as of April 16. “Rent collections are currently at …
It’s still too early to pinpoint how long and how severe the disruption caused by the outbreak of COVID-19, the disease caused by the novel coronavirus, will be to the major office markets of Texas. But brokers in Dallas, Houston and Austin are already seeing their markets display short-term adjustments with regard to deal velocity and structure. As commercial brokers know all too well, every deal is different. Companies are making decisions on whether to delay or pursue office lease consolidations, renewals or expansions based on their unique cash-flow situations, sales outlooks and current positions in their business cycles. In addition, because many office-using jobs don’t qualify as essential services, the uncertainty about how long employees will have to continue to shelter in place and work from home is leading many companies to reassess their short-term needs in terms of size, location and density. Lastly, there are the office users whose businesses have already been walloped by reduced consumer spending. For these companies, decisions about future leasing activity may very well be taking a backseat to a more pressing short-term need to escape an existing lease with minimal bloodshed. Office brokers have their hands full addressing the unexpected and unforeseen …
NJEDA, Local Institutions to Provide Over $20M in Financing to Small Businesses Impacted by COVID-19
TRENTON, N.J. — The New Jersey Economic Development Authority (NJEDA) has partnered with six community development financial institutions (CDFIs) to provide between $20 million and $30 million in low-cost financing to small businesses and nonprofits impacted by COVID-19. The CDFI Emergency Loan Loss Reserve Fund is a $10 million capital reserve fund that the NJEDA will use to take a first loss position on COVID-related loans that provide low-interest working capital to small businesses that have been negatively impacted by the outbreak. The NJEDA will back these loans up to 50 percent if they default in the future. Institutions including New Jersey Community Capital, UCEDC, Regional Business Assistance Corporate, Cooperative Business Assistance Corp., Greater Newark Enterprise Corp. and 1st Bergen Federal Credit Union will all participate in the CDFI Emergency Loan Loss Reserve Fund.
BENTONVILLE, ARK. — Amid the COVID-19 crisis sweeping the nation, Walmart set a goal in mid-March of hiring 150,000 associates before May 1. Since then, the Bentonville-based retailer has hired an average of 5,000 people per day, surpassing its goal. Now Walmart has its sights set on hiring another 50,000 people. In a statement, the company said most of the new hires will be temporary who will support current associates and customers in locations with specific needs. Additionally, 85 percent of the 150,000 new associates are temporary or part-time workers. Walmart said it worked with more than 70 companies that furloughed workers to hire the associates. In stores, Walmart will hire cashiers, stockers and personal shoppers. In distribution centers and fulfillment centers, it will hire additional fillers and pickers. Walmart also plans to add more drivers to its fleet. Walmart is considered an essential business, so its doors remain open and its e-commerce operations are still running as well.
AUSTIN, TEXAS — Texas Gov. Greg Abbott has established the Strike Force to Open Texas, a committee of medical experts and private and public leaders who will lead the process of reopening the state’s economy while revising hospital capacity and social distancing guidelines. In announcing the initiative on Friday, April 17, Abbott also introduced a “Retail to Go” model that will allow retailers in Texas that have been closed since mid-March to re-open on Friday, April 24 with curbside pickup and delivery services. The governor also issued an order that extends a requirement for all licensed healthcare professionals and facilities to postpone all surgeries and procedures that are not “medically necessary.” Lastly, Abbott has directed state parks to reopen on Monday, April 20, with requirements that visitors wear face coverings, maintain six-foot distances and gather in groups no larger than five.