The REIT industry’s focus on the needs and concerns of its tenants will become increasingly important as a result of the coronavirus crisis, according to Gil Menna, co-chair of the REITs and Real Estate M&A practice at Goodwin.
The REIT industry’s “heavy footprint” in non-traditional asset classes gives it a clear advantage as the world adapts to new ways of living in response to the coronavirus crisis, said Scott Crowe, chief investment strategist at CenterSquare Investment Management.
While REIT share prices drifted lower in the past week, conditions appear to have settled somewhat compared to the large swings seen in the early weeks of the coronavirus crisis, said Nareit Senior Economist Calvin Schnure.
Prologis, Inc. (NYSE: PLD) chairman and CEO Hamid Moghadam said he expects businesses to operate with a higher level of inventories following the coronavirus crisis. Speaking on an April 6 business update conference call, Moghadam noted that for approximately the past 20 years supply chains have been structured for efficiency. “People have been squeezing more and more inventory out of the system. The supply chains have been longer and longer, so they’re very vulnerable to disruption,” he said.
CBRE Chief Global Economist and Head of Americas Research Richard Barkham and CBRE’s Head of Occupier Research, Americas, Julie Whelan, joined the REIT Report on March 27 to talk about the economy, commercial real estate, and the impact of the coronavirus pandemic.
In the latest edition of the REIT Report podcast, Nareit Senior Economist Calvin Schnure said the ultimate economic and financial impact of COVID-19 will be unclear until there is more progress on the public health front. Authorities, meanwhile, are acting quickly to support the economy, including the resurrection of the Federal Reserve’s crisis programs, Schnure noted.
Last week, the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) announced plans to halt foreclosures and evictions in the wake of the COVID-19 pandemic. HUD announced that it will put a stop to all foreclosures and evictions for mortgages insured by the Federal Housing Administration (FHA) until the end of April 2020. The FHA backs an estimated 8.1 million mortgages.
In the latest edition of the Nareit REIT Report podcast, Chris Caton, global head of strategy and analytics at Prologis, Inc. (NYSE: PLD), discussed the impact of COVID-19 on the warehouse and logistics industry. The current uncertainty is likely to be a headwind for the economy and all forms of real estate, logistics real estate included, Caton said.