We continue to monitor the market and remind everyone to stay safe. The confirmed cases continue to grow per John Hopkins COVID website. The daily increases from 3/30 to 3/31 did decline and shows a lower than one growth factor; however, we will want to see this trend to continue to understand if we are at the inflection point.
Our office continues to be active in the commercial market and keep a pulse on trends. As we mentioned in the last blog post, retail and restaurants make up a good portion of the Northern California economy. However, the jobless claims numbers show staggering figures and clearly reflects the abrupt impact to the entire economy. See the graph below for the jobless claims numbers, which is difficult to see the spike at the far right, but is shows 6.648 million people filing for unemployment. The rise in the last recession looks mild in comparison.
Even with these record figures in our Country, the recent Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allocated $350 billion for new SBA loan program one called the Paycheck Protection Program (PPP Loan). Contact your lender or other local banks to apply for these loans. The PPP loan is forgivable with parameters and will help the majority of small businesses affected by these unprecedented times. Here is a great resource page from Certified Commercial Investment Member (CCIM): https://www.ccim.com/covid19/
Our office continues to address concerns from Tenants and Landlords. We have many resources from our numerous associations. Here are some great resources for both parties and it is highly recommended to understand both sides.
Resources for Tenants and Landlords;
CCIM – Landlord Strategies for Handling Rent Relief Request (older article but useful)
The below webinar aired yesterday and was on point with the current times for landlord/tenant concerns;
Unfortunately, the data for our local community lags behind to help analyze the true impact to small businesses and our local commercial real estate market. However, the pulse in the local community is still positive and strong. Our office continues to discuss the long-term outlook with clients, and everyone is working together to get the economy back to the upward trend we were originally on at the start of this year.
Continue to stay safe and positive!