Real Estate Development Firm Layoffs
Hi just asking to see if anyone has heard anything about layoffs from Major Development firms.

Already seen a few regional firms lay-off part of their staff. 

Also wondering what you guys think is going to happen to Development firms (especially multifamily) that have product being delivered now or this summer that are in the lease up phase.
[{"id": "fngz8nn", "text": "I\u2019d be curious as well as I was very close to applying to some last year.", "replies": [], "depth": 1}, {"id": "fngze25", "text": "Of the two regional firms I work with, so far no Layoffs. One is based in Minneapolis and the other is based in Miami. Both have taken advantage of the SBA loans to keep them afloat. \n\nI think anything delivering over the next 12 months is going to struggle with leasing up. I think lenders will stop originating construction loans for the next 12 months. But after that, there should be pent up demand and lower labor costs which will create another run for development. \n\nLong term: we have a housing shortage in this country, this crisis is only going to exacerbate that.", "replies": [{"id": "fnhawbr", "text": "Housing shortage is good for our business though! I'll tough it out for 12 months to have another 10 year boom on the back end.\n\nDo you do consulting? I was working for MF developer in Boca and was laid off. Looking to do consulting if I can.", "replies": [{"id": "fnhd39h", "text": "Yes I know, that's why i think this will be good for development long term. Things were getting heated, this is a nice recalibration.\n\n&amp;#x200B;\n\nI am not in consulting. I work in real estate private equity, we invest in core, value-add, and opportunistic deals across the US.", "replies": [{"id": "fnhgh2q", "text": "Nice. What size deals do you invest in?", "replies": [{"id": "fnirr6x", "text": "We try to write equity checks anywhere from $10m-$20m. So total cap on projects range around $40m-100m", "replies": [], "depth": 5}], "depth": 4}, {"id": "fo9i6u0", "text": "Being in PE RE do you know if your firm got any of that sweet sweet PPP?", "replies": [{"id": "foa51zy", "text": "Our property management companies did, we partner with small operators who handle the day to day. they got the loans.\n\nWe are a 10 person shop. But our LP investor asset management fees remain unchanged, so we can\u2019t really argue that we are impacted.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fnhaqqn", "text": "I work(ed) for a multifamily developer in South Florida. I've been with them for 5 years. The development team laid off 3 including me (out of 8), construction cut 4 and management cut 1 so far. I've been keeping in contact with some of my buddies over there and there haven't been anymore layoffs yet. \n\nI have been calling everyone - vendors, recruiters, other developers I know - looking for work. No one is hiring. I was shortlisted for a different development company in Miami back in early March; nothing, they just ghosted me.\n\nI have moved on to my trade of architecture for the time being to get money coming in. I feel like development is going to go through a rough patch for at least 6 months to a year (if not longer). \n\nJust for context on my layoff: I was a Development Manager which focuses primarily on the front end and getting the deal to construction. We had construction managers that ran the day to day of the job once it started construction so my involvement was more oversight at that point. Once I got a permit and GMP, I moved on to other new projects. The company cancelled 4 of the new jobs I was working on and I had gotten 2 to permit. Another 2 were pretty far along in construction. So pretty much, no new jobs = no need for someone who exclusively works on new jobs... Just like that, with no warning, I was laid off.", "replies": [{"id": "fnhbmfu", "text": "I have 75% cashout of completed price (ARV) for recapitalization for builders of unfinished homes.  If the punch work isn't done, it's ok.  No appraisal, close in 10 days or less.", "replies": [], "depth": 2}, {"id": "fnhdsqp", "text": "It's funny, i was talking with a group about a (multifamily) Development Manager position in Miami prior to all of this, they went silent as well.\n\nOut of curiosity, does your former firm focus exclusively on south florida development, or are they more geographically diverse? I feel like south florida was hit especially hard, relative to other US cities.", "replies": [{"id": "fnhgqx7", "text": "We did deals in South Florida and Central. We'd venture out from time to time but not often. One deal in Austin and a few in the Carolinas before I came around.", "replies": [{"id": "fnhhcgo", "text": "Yeah central and south Florida in general are just getting hammered. The firms I had mentioned in my comment where geographically diversified, which might be why they are not laying off (yet). Hopefully fundamentals in Florida remain strong, there is definitely a housing shortage.", "replies": [{"id": "fnij27j", "text": "Well I definitely think after all this stuff settles down, a lot more New Yorkers will be moving down to the south Florida area.", "replies": [{"id": "fnijqe1", "text": "Due to the virus? I don\u2019t think behavior will change that much, there have been previous pandemics and life has gone back to normal pretty quickly.", "replies": [{"id": "fnjv22e", "text": "I don't think New Yorkers will move to SoFL because of the virus - it'll be because of the extremely high taxes and over-regulation.  But this is a catalyst.", "replies": [{"id": "fnkme8k", "text": "Ah yes, I agree on that. Starwood already made that big move, I\u2019m sure more is to come.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fnhb9qf", "text": "I\u2019m with a national big box industrial developer and we have not let anyone go. Granted, industrial should fair relatively well during this recession...hopefully.", "replies": [], "depth": 1}, {"id": "fnhivo0", "text": "The development firm I worked for laid off 15% of staff and I was included in that. They also cut everyone\u2019s salaries and aren\u2019t giving any PTO now. I heard another lay-off is coming as well. Companies that aren\u2019t laying people off are freezing hiring or cutting salaries", "replies": [], "depth": 1}]