Companies added 167,000 jobs to payrolls in July, down sharply from the upwardly revised tally of 4.31 million in June, according to ADP. July's job gain was well below the median expectation of 1.2 million among economists surveyed by Bloomberg.
Facebook is leasing all of the 730,000-square-feet of office space in a Manhattan building that Vornado Realty Trust is redeveloping. The deal for space in the James A. Farley Building is one of the largest leasing deals for the city this year.
After much contemplation, a Sri Lankan regulatory body is adding a unit trust-based REIT framework to the Colombo Stock Exchange. The framework will allow real estate developers and owners to convert finished properties into a REIT.
The Kroll Bond Rating Agency, which tracks $286 billion in loans, reports that the CMBS delinquency rate in July fell 40 basis points after increases of more than 300 basis points in May and June.
REIT share prices were higher in the final week of July, with a total return of 4.2%, trimming the declines year-to-date to 10.0%. All property sectors were up, and the 7.1% gain by data centers REITs brought their year-to-date total returns to 33.7%, said Nareit economist Calvin Schnure. Timber REITs extended their streak of weekly gains to five weeks, while home financing mREITs were up for the fourth week in a row.
Real GDP declined at a record 32.9% annual rate in the second quarter. The contraction in activity was concentrated in a few sectors most directly affected by social distancing, explains Nareit economist Calvin Schnure, and had already begun to rebound as the economy reopened in May and June. Some areas like travel and restaurants may face a slow recovery, at least until an effective vaccine becomes available. Other parts of the economy, like dentists' and doctors' visits, are likely to rebound more quickly as the economy reopens.
Alternative investment platform NexPoint will acquire self-storage REIT Jernigan Capital for around $900 million. NexPoint's Jim Dondero noted that the company plans to build on Jernigan's vision, "maintaining unparalleled asset quality and continuing the current growth trajectory."
Several US department store brands face significant challenges from the coronavirus and other factors, but some of their peers in Europe and Japan have fared better. Former Saks CEO Stephen Sadove recommends revitalizing stores by trying a hybrid wholesale-retail model used by some European businesses.
Numerous REITs across the US have sprung into action, assisting their employees, customers and broader communities during the pandemic. REITs participated in these efforts in a number of ways, ranging from making space available for critical services to providing monetary and non-monetary donations.
Student housing operators with properties located near universities and colleges that will hold classes in-person this year are expected to fare well, especially as these schools make changes to promote social distancing. American Campus Communities hopes to "further benefit from a supply reduction of over 55,000 on-campus beds in the markets we serve as a result of university plans to de-densify and hold quarantine beds offline," says Chief Investment Officer William Talbot.