Analysis provided by The Pisaneschi Group & CoStar provide insight into how COVID 19 has affected Industrial, Multi-Family, Office & Retail asset classes.
Here are my high-level notes for those not wanting to go too deep:
Probably the safest asset class to invest in right now. Cap Rates are in the mid 6s generally. Growth trends towards e-commerce have been hyper-accelerated due to COVID. Inventory in PBC is low and most vacant land prices are to high to consider Industrial / Warehouse development.
Multi-family has held strong during COVID. PBC slightly lags behind the industry average of on-time rent payments for recent months, due mostly to lost hospitality jobs. The unemployment rate in PBC is 20%+ and continues to climb. The worst may be yet to come this fall. White-collar, remote-capable workers will be preferred renters for a while.
Lots of positive & negative speculation about the state of Office going forward. Bottom line: it will remain stable, but have to evolve. A radical downsize trend is coming. The smallest spaces (<5k SF) & the largest spaces (50k+) are most at risk. However, the smaller sub-5k spaces are probably ok due to “incoming” downsizers.
COVID is hyper-accelerating the current retail e-commerce trend, making industrial investments great, but retail investments uncertain. Brick-&-mortar will have to continue to evolve into making shopping more experiential. Look for the creation of new restaurants that have no seating and are available by delivery only.