Weekly Shorts - April 6th, 2020

• CBRE projects 37% decline in hotel RevPAR for 2020. They believe hotel losses will stabilize by Q3.

• Industrial & Logistics REIT, Prologis, see's signs of Chinese economic recovery and believes US & Europe will follow a similar path. "Despite lockdowns and travel restrictions, lease-signing in China continued - albeit at a slower pace."

• FNMA & FMAC are offering mortgage forbearance for apartment owners if they suspend evictions for tenants unable to pay rent due to the coronavirus.

• Meanwhile, U.S. mall owner, Taubman, is telling tenants they must pay rent.

• Last week national restaurant chain Cheesecake Factory publicly announced it would not be paying any rent during April. Perhaps, opening the door for other retailers to follow suit.

• Real estate gears begin to turn again in NYC as brokers are now considered "essential business." Appraisals, inspections & showings may resume.

• National asking cap rates in the NNN-lease sector increased during Q1 with Retail at 6.15%, Office at 7%, and 7.05% for industrial properties.

Courtesy of The Boulder Group

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