Real Estate: Green Street Advisors Issues Report on COVID-19

May 22, 2020 | News, Real Estate
https://dailyalts.com/wp-content/uploads/2020/05/51e6dd474e53b10ff3d8992cc62c3e761c3dd6f85254784975267ad59344_640.jpg

Green Street Advisors has released a new report titled U.S. Commercial Real Estate Cross-Sector Overview Amid Covid-19. The real estate advisory and research firm takes a look at which segments of the commercial real estate and Real Estate Investment markets have experienced the most damage from the economic shutdown caused by halt the coronavirus spread.

Green Street Advisors on COVID-19

The firm’s analysts think that Mall Real Estate and REITs will take one of the hardest hits. Many malls across the United States were already struggling due to e-commerce competition, but this could be the ned of r many malls. Green Street thinks that half of all mall-based department stores to close by the end of 2021. This could trigger co-tenancy clauses for other tenants and allow them to break or renegotiate their lease.

Power Centers are those outdoor shopping center with multiple big-box retailers, as well as an array of smaller retailers, restaurants, and other kinds of businesses. They should do better than grocery-anchored shopping centers. The grocery store anchored locations have a lot of smaller businesses and restaurants that will be particularly hard hit by the pandemic.

The office market is going to feel the impact on the shutdown as well. Concerns about near-term rent prospects and rent-paying ability are more of an issue in New York metro than anywhere else. Sun Belt and non-gateway office markets are performing much better than larger cities right now.

What’s Next for Office Space?

The real question for the office market, according to Green Street, is the long-term impact of work from home policies. The concept has been proven to work very well for many companies and could significantly reduce the demand for office space in the future.

In a typical recession, Health Care real estate usually holds up better than most sectors. As we all know, this is not a typical recession. Nursing homes and other senior living centers have experienced waves of infections and death across the United States as the virus attacked at-risk residents with fatal results.

Green Street singled out single-family rentals and industrial properties as two sectors that should hold up well and show robust performance when we can fully open the economy.

You can read the full report here.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/12/60148621_1291834164298938_7384402834688573440_n.jpg
FinTech: LatAm BNPL Provider Kueski Nabs $202M Series C Round
December 3, 2021     FinTech, News, Venture Capital

Kueski is one of the largest buy-now-pay-later (BNPL) and digital lenders in Latin America. It announced December 2 its close of a $202 million Series C debt and equity round….

https://dailyalts.com/wp-content/uploads/2021/12/bitcoin-gd3611bef8_640.jpg
Digital Assets: Renowned Investor Charlie Munger Sides With China On Its Crypto Ban
December 3, 2021     Digital Assets, News

Charlie Munger has shot off another broadside against bitcoin, endorsing China’s action in banning cryptos. A long-standing bitcoin skeptic, Munger was speaking in an interview for the Sohn Hearts &…

https://dailyalts.com/wp-content/uploads/2021/12/rider-img.jpg
Venture Capital: 15-Minute Delivery Startup JOKR Raises $260M Series B
December 3, 2021     News, Venture Capital

New York-based instant grocery delivery startup JOKR has become a unicorn within nine months of its launch and raised a $260 million Series B within five months of raising $170…

https://dailyalts.com/wp-content/uploads/2021/12/img-scaled.jpeg
Venture Capital: Porsche Buys A Stake In Sustainable Homes-Focused Startup 1KOMMA5°

Porsche, the German car maker, has taken a stake in Hamburg-based startup 1KOMMA5° through its venture finance arm, Porsche Ventures. The startup seeks to boost the rollout of presently decentralized…