Covid Pandemic Impact to Real Estate Investment Owners and What You Should Do Next
Let me begin by saying we're all in this together. Like you, Elizabeth (my wife) and I own and operate middle-core income property in addition to running Media Realty. There’s no knowing how deep or broad the corona pandemic impact to real estate and our day-to-day operations will be.
As we try to maintain a healthy space for our families to remain safe during our stay-at-home order, we find ourselves thinking about our connections in business and how we can all work together to get through this.
Remember, that Media Realty is here to share information and knowledge with you. You may contact us at any time and ask any question(s). We are in uncharted territory and I think it’s important to know the facts.
Beginning in China and sweeping through Europe and now America, the coronavirus has had a significant impact on the world economy. Struggling supply chains, the volatile stock market, the closing of nonessential businesses, school closures and the shelter-at-home order has had serious implications on our lives and our businesses.
How Will the Virus Affect Our Real Estate Businesses?
It’s too soon to determine what the long-term implications of the coronavirus will be on real estate. That being said, many pundits predict a slowing housing market in the very near future. Owners of mid-core apartment buildings are fearful that many tenants will not have the ability to pay rent on come April 1st. After all, our tenants have been laid off.
For those who own commercial property, the same holds true as many commercial tenants have been ordered to shut down.
National and Local Measures to Combat the Effects of Covid-19
To combat the severity of market volatility as well as an ability to weather this storm, the following are the measures that we’re seeing on a national (macro) basis as well as at the state and local (micro) levels.
- Nationally, the Federal Reserve in its effort to shore up the economy dropped the interest rates by .05%. Additional rate cuts may follow.
- Nationally, the Federal Housing Administration (FHA), Fannie Mae, Freddie Mac and the Federal Housing Finance Agency have declared a moratorium on tenant evictions and foreclosures for assets under their purview.
- Locally, Miami-Dade County Police Department announced that its officers would cease to enforce evictions across the county. We expect this to be the case through all South Florida and the state.
- Locally,Businesses and hotels in Miami-Dade have been ordered closed. The same is true for Broward County and the Keys.
- Nationally, Washington DC is seeking to boost the economy through a stimulus package of between $850 billion to more than $1 trillion. This package could include $200-$300 billion for direct relief to small businesses and $250 billion could be directed towards US citizens. As of last evening the package has yet to be approved Congress and the Senate.
- In Florida State Gov. DeSantis is launching an emergency bridge loan program to assist small businesses. Click the hyperlink to view Broward County’s Small Business Loan Programs.
- Congress has passed the "Families First Corona Response Act" providing support to American workers, families, and businesses. Click here for more information.
- Nationally, the National Association of Realtors have petitioned the Treasury Department to include deadline relief for 1031 like kind exchanges and opportunity zones.
- Nationally, Companies like Publix, Walmart and Amazon, that are hiring. We are sharing all hiring information with our tenants
Media Realty is a brokerage firm that specializes in mid-core assets and we are here as a resource during the days to come. We'll be navigating the pandemic impact to real estate, to the local South Florida metro area, and to your investments and the weeks unfold. We are all in this together and we believe that together we will get through it. Please call on us any time as we continue to provide commercial real estate services, support, disseminate information and work as a liaison between the market, your tenants, and yourselves.
If you have information that is important to Mid-Core property owners, please contact Media Realty and we will get the message out.
We wish you and yours, health and safety as we navigate these trying times and we appreciate your continued support.
In health, professionally,