The unemployment rate declined to 10.2% in July as nonfarm payrolls added 1.76 million jobs. The total number of jobs is about 13 million below the tally for February, before the coronavirus upended the labor market.
Mindspace Business Parks REIT, the second REIT to list in India, was up as much as 12% during its first day of trading. Samantak Das of JLL noted that "the type of returns we are seeing today may go up" and that other office players are eager to get listed.
AREIT, the first Philippine REIT, has carried out an initial public offering and plans to list on Aug. 13. "AREIT, being a BPO (business process outsourcing)-centric REIT, is a major beneficiary of the trends in the office leasing sector," according to a research note from COL Financial.
Large banks are showing loan-loss allowances that average about 2% of their CRE loans, Autonomous Research figures show. It remains to be seen how those loans will fare as the market for CRE lending shows some signs of strain amid the pandemic.
Intercontinental Exchange, the company that owns the New York Stock Exchange, said it will acquire the automated mortgage platform Ellie Mae in an $11 billion deal, in an effort to expand its mortgage servicing business. The private equity investor Thoma Bravo paid $3.7 billion to take Ellie Mae private 16 months ago.
Retailers are using Chapter 11 bankruptcy filings to get out of long-term leases and close thousands of stores, bypassing negotiations with landlords. If the trend continues, it could have a broader impact on CMBS and the real estate market in general, says Melanie Cyganowski of Otterbourg PC.
A countersuit filed by Simon Property Group alleges that Gap is "taking opportunistic advantage" of the pandemic to avoid paying $107 million in lease payments. The court filing comes after a Gap lawsuit requesting rent relief.
Medical office transaction volume dropped 43% in the second quarter compared with the previous year, according to Real Capital Analytics, while CoStar Group's data showed a 54% drop. However, looking forward, a lack of new construction could "keep the market strong since there is not going to be oversupply," says Steve Hall with Transwestern.
President Donald Trump said earlier this week that his administration was "exploring executive actions to provide protections against eviction," but some landlords are concerned about the idea. Meanwhile, in New York, Gov. Andrew Cuomo extended an eviction ban, although some evictions could move forward depending on how the court system applies the directive.
Prologis has made its largest acquisition since the start of the pandemic, purchasing a 1.3 million-square-foot industrial property in Romeoville, Ill., in a $98 million deal. The seller of the property is Macquarie Real Estate.