How do you guys think Corona Virus will affect Leasing/Sales?
Curious what others thoughts are. I've read that it may not affect this industry as much as people think due to the pace of deals, etc.
[{"id": "fjnn8ip", "text": "We\u2019ll see.  I\u2019m in the middle of a few large hotel transactions.  Everyone is sort of trying to keep an objective lens on the situation.  The more this gets hyped by the media the worse it gets for businesses, though.", "replies": [], "depth": 1}, {"id": "fjnpv87", "text": "Short term, we will see draw downs in leisure and tourism tenants. \n\nLonger term, I think many landlords got used to rents only going up and lots of deals underwritten at a 5 cap rate wont pencil out when rents start to decline in the next year or two. \n\nThis will lead to a contraction in new development and a crash in land prices. Land always is the first to get hammered so it is the one I am watching most closely", "replies": [], "depth": 1}, {"id": "fjnr28k", "text": "Leasing could really slow down due to potential users\u2019 reluctance to visit buildings. On the other hand, it might be a good time to get existing tenants to commit to a renewal rather than considering a move.  \n\nFor sales, I think it could slow down the due-diligence process because so many buyers use national companies now that fly in inspectors, appraisers, surveyors, etc. \n\nI\u2019d recommend buyers using companies in the same metro area as the property. With the exception of NYC, most US consultants could drive to local properties in their own cars and work from home without much contact with the public. \n\nI\u2019m not sure how bank/lender and title/settlement employees are set up to work from home, which is another factor. Hopefully their IT departments are setting them up with laptops and VPNs now if they are not already. \n\nOne concern that I have thought of is wondering if this will push some medical practices to use telemedicine temporarily, and they will find they like it, therefore  question the need for physical practices in Class A office space to see most patients going forward. Obviously depends on the specialty. \n\nI look forward to hearing others\u2019 thoughts.", "replies": [{"id": "fjnrkzv", "text": "I didn't even think about the DD process. Many of my clients recently have, in fact, used almost 100% out of town companies (lender, surveys, etc). Will have to start finding local ones for this reason.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjns8fk", "text": "In the last recession,\n\nEverything stopped. So...\n\nHopefully this one is really just virus related disruptions, but seems to be the end of the bull market. Yield curve has been inverted for a bit now..", "replies": [], "depth": 1}, {"id": "fjo0ejh", "text": "I think it\u2019ll definitely affect sales because it\u2019s affecting financing. Our CMBS platform is on hold right now.", "replies": [], "depth": 1}, {"id": "fjoloov", "text": "In the short term a lot of companies are about to do a work from home experiment.  Whether that works or not for them could have a lot of impact on future office markets.  If its a disaster not much changes there, if it goes well expect companies to reduce their physical footprints.", "replies": [], "depth": 1}, {"id": "fjoq4l4", "text": "Asking the real questions", "replies": [], "depth": 1}, {"id": "fjsgu8d", "text": "My dad already had a client hold off on leasing space to due to unknown affects corona could have on their operations ( he does office/industrial).\n\nI\u2019m in retail and I can see the struggling tenants in our portfolio potentially see an even further decline in foot traffic.", "replies": [], "depth": 1}, {"id": "fjup7il", "text": "It will be the end of handshake deals.", "replies": [{"id": "fkeng1e", "text": "lol", "replies": [], "depth": 2}], "depth": 1}]