coronavirus

General Contractor Survey: 27 Percent of Firms Report Layoffs Since Coronavirus Outbreak

by Alex Tostado April 7, 2020

More than a quarter of general contracting firms in the U.S. have reported layoffs due to the nationwide coronavirus (COVID-19) outbreak, a recent study by the Associated General Contractors of America (AGC) found. The survey was conducted from March 30 to April 2 for AGC members. Of the 1,296 respondents, 27 percent said they have had to lay off, furlough or fire employees. The survey was released April 3, the same day the Bureau of Labor Statistics (BLS) released its March job report, in which it reported the U.S. economy lost 701,000 jobs. The BLS found that the construction industry lost 29,000 jobs from February to March. AGC chief economist Ken Simonson notes that the BLS numbers are through March 12, when the COVID-19 outbreak was still in its relative infancy in the U.S. Indeed, AGC’s April 3 survey reflects the fast-spreading response to COVID-19, with 55 percent of firms reporting a delay or stoppage on worksites, a drastic jump from the survey released March 27, when 39 percent of firms reported a delay or stoppage. The survey released March 20 saw a 28 percent slowdown. The most common source of delay or disruption, cited by 35 percent of respondents, …

April 7, 2020

Texas

City of Austin Lifts Temporary Ban on Commercial, Residential Construction

by Taylor Williams April 6, 2020

AUSTIN, TEXAS — The City of Austin has lifted a temporary ban on certain construction projects in response to a new directive issued late last week by Texas Gov. Greg Abbott that deems all construction to be essential services. According to local ABC affiliate KVUE, the new guidelines on construction include additional measures designed to limit the spread of COVID-19, such as more hand-washing stations, no communal water coolers and job site pre-screening. The City of Austin’s website lists 484 cases of COVID-19 in Travis County as of Monday, April 6.

April 6, 2020

Ventas Offers April Rent Deferral Program for Seniors Housing Operators

by Kristin Harlow April 6, 2020

CHICAGO — In order to recognize the unique and unprecedented conditions of COVID-19’s impact on its triple-net-leased seniors housing tenants, healthcare REIT Ventas has established a rent deferral program for those care providers for the month of April. Under the program, certain seniors housing care providers who are Ventas tenants can defer 25 percent of their April 2020 payment obligation until Oct. 1 or receipt of government assistance. All amounts deferred are required to be used for operating expenses to care for seniors at Ventas communities. Ventas says these tenants account for approximately 20 percent of its total portfolio by net operating income. Based on current expectations, Ventas estimates that the amount of payments deferred under the terms of this program for April could be in the range of $3 million to $9 million. As of March 28, out of the 740 communities within the Ventas portfolio, 33 communities have experienced at least one confirmed COVID-19 diagnosis affecting approximately 70 residents out of 70,000 and 25 staff out of 55,000. Ventas is based in Chicago.

April 6, 2020

Company News Maryland Southeast Top Stories

Under Armour to Furlough 6,600 Workers Beginning April 12

by Taylor Williams April 6, 2020

BALTIMORE — In response to the spread of COVID-19, Under Armour Inc. (NYSE: UA) will temporarily lay off some 6,000 employees at its outlet stores around the country and approximately 600 workers at its U.S. distribution centers, effective Sunday, April 12. The Baltimore-based sports apparel retailer also said it would extend current store closures until further notice. In addition, the company’s board of directors and executive vice presidents will be taking 25 percent pay cuts during the public health crisis. Under Armour workers at distribution centers that continue to work will be paid premium bonuses. The company will cover full health benefits for employees for approximately two months during the layoff period. “In these unprecedented and challenging times, the majority of stores where Under Armour is available remain closed, contributing to a significant decline in revenue,” says Patrik Frisk, the company’s president and CEO. “While we’re thankful for the meaningful balance sheet improvements we’ve driven over the past two years and are seeing some early signs of recovery in our Asian-Pacific region, this unanticipated shock to our business has been acute, forcing us to make difficult decisions to ensure that Under Armour is positioned to participate in the eventual recovery of demand.” Prior to …

April 6, 2020

Company News Multifamily Texas

San Antonio Apartment Association Proposes Rental Assistance Program in Response to COVID-19

by Taylor Williams April 3, 2020

SAN ANTONIO — The San Antonio Apartment Association has proposed an emergency rental assistance program as a means of helping residents that are struggling to pay rent as a result of COVID-19. The organization is encouraging its members to forgive 25 percent of their outstanding rents and waive late fees for residents earning less than the area median income who can also show proof of unemployment.

April 3, 2020

District of Columbia Southeast

U.S. Economy Loses 701,000 Jobs in March Due to Efforts to Contain Spread of Coronavirus

by Alex Tostado April 3, 2020

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 …

April 3, 2020

Midwest Minnesota Retail

Target Unveils New Measures to Promote Safety, Social Distancing

by Kristin Harlow April 3, 2020

MINNEAPOLIS — Target (NYSE: TGT) has unveiled new safety measures to help reduce the spread of coronavirus. Effective April 4, Target will actively monitor and, when needed, meter guest traffic in its nearly 1,900 stores nationwide to promote social distancing. Additionally, Target will supply its more than 350,000 employees in stores and distribution centers with face masks and gloves to wear at work, while continuing to encourage healthy hygiene habits as provided by the Centers for Disease Control and Prevention (CDC). These updates are on top of action the company has taken in recent weeks, such as rigorous cleaning routines at its stores and distribution centers, social distancing measures, Plexiglass partitions at registers and contactless order pickup. Minneapolis-based Target maintains nearly 1,900 stores nationwide.

April 3, 2020

Features Multifamily Seniors Housing

Wide-Ranging Financial Fallout Expected as Seniors Housing Industry Confronts Pandemic, Says Economist

by Alex Patton April 3, 2020

Great uncertainties cloud the immediate outlook for the U.S. economy and the seniors housing industry in the wake of the COVID-19 pandemic. But one thing is certain: Unlike other industries that have been forced to shut down, senior living communities are open and continue to serve residents. With that framework in mind, a March 26 webinar sponsored by the National Investment Center for Seniors Housing & Care (NIC) addressed the ongoing financial implications of the COVID-19 pandemic for operators, developers and capital providers. The webinar is the first in a series of NIC-hosted webinars to address industry challenges related to the pandemic. Webinar participants included Beth Mace, NIC chief economist; Jim Costello, senior vice president, Real Capital Analytics; Kurt Read, principal, RSF Partners; Matthew Ruark, senior vice president, head of commercial and healthcare mortgage production, KeyBank Real Estate Capital; and Kevin McMeen, president, real estate, MidCap Financial Services. Early impact The immediate financial repercussions of the pandemic include a stall in transactions, a rise in lender caution, confusion over valuations, and a search for clarity on how the disease will impact occupancies going forward. The most startling data point was noted by Mace at the outset. Weekly jobless claims March …

April 3, 2020

District of Columbia Retail Southeast

First Step to Restoring Economy is Stopping Pandemic, Says NRF Chief Economist

by Alex Tostado April 2, 2020

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.

April 2, 2020

Florida Southeast

Florida Governor Issues Statewide Stay-at-Home Order for Month of April

by Alex Tostado April 2, 2020

TALLAHASSEE, FLA. — Fla. Governor Ron DeSantis has issued a statewide stay-at-home order that will go into effect Friday, April 3 at 12:01 a.m. The executive order will expire April 30, though the governor can extend it then. The full list of essential reasons and businesses has not yet been released, but DeSantis says it will closely resemble what Miami-Dade County Mayor Carlos Gimenez published March 26. In Gimenez’s order, non-essential commercial and retail businesses were ordered to close, as well as hotels, motels and short-term rental properties. Essential services remaining open include construction sites, grocery stores, pharmacies, take-out food counters and gas stations.

April 2, 2020

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