With more than a million confirmed cases in the United States alone, the COVID-19 pandemic continues to take its toll on the commercial real estate industry. While the economic repercussions remain difficult to quantify, it's clear the coronavirus will have far-reaching consequences for all aspects of the global economy—and commercial real estate is no exception.

To help you navigate these uncertain times, Reva has searched far and wide to bring you the latest news on COVID-19 and commercial real estate. Here are this week's top stories.

CRE at large

MarketWatch: Disruption creates opportunity, at least for those with enough capital to act on it. Ariel Maidansky, CEO of design/staging marketplace Envizzo, believes the pandemic is a perfect recipe for consolidation. As co-working, co-living, and vacation rental operators face a precipitous decline in demand, depressed valuations make them prime acquisition targets for well-capitalized landlords—unless, that is, landlords decide to get into the business themselves.

NMHC: After successfully securing an extension for taxpayers conducting Section 1031 like-kind exchanges, industry trade associations are asking the Treasury Department to clarify and expand this relief. Deadlines to identify a replacement property or to close an exchange transaction that fell on or after April 1st have already been pushed out to July 15th, but the latest request would extend these deadlines even further and grant taxpayers the ability to retroactively revise their identified replacement properties.

Propmodo: With COVID-19 shuttering businesses across the country, commercial real estate insurers are under pressure from lawmakers to pay claims on business-interruption policies, many of which were rewritten to exclude pandemic-related losses after the 2002-2004 SARS outbreak. While lawsuits are inevitable, there is also growing concern that, without government intervention, the resulting payouts could bankrupt the insurance industry.

Broker Resources

CBRE — COVID-19 Resource Center
C&W — COVID-19 Recovery Readiness
JLL — Coronavirus (COVID-19) Resources for Real Estate
NAR — Coronavirus Guidance for Commercial Real Estate

Other CRE Resources

CCIM Institute — Coronavirus (COVID-19) Resources and Guidance
NAREIT — Coronavirus Market Commentary
ULI — COVID-19 Industry Insights

Multifamily

NBC News: The apartment industry is bracing for what could be the largest rent strike in decades, as residents of New York, Los Angeles, and Philadelphia prepare to withhold their May rent. Leaders at the NAA and NMHC argue that a rent strike will devastate millions of small landlords and industry employees—and some activists agree, insisting that the government step in to relieve both owners and renters. Championed by California Rep. Maxine Waters, a sweeping legislative package that calls for a $100 billion rental assistance fund could be the answer they've been waiting for.

NMHC: Trash is piling up at apartment communities across the country, an unexpected side effect of current shelter-in-place orders. Operators like Camden Residential are seeing trash volume rise by as much as 40%, increasing the cost of doorstep valet collections and bulk trash haul-aways.

Forbes: Well-versed in the art of anticipating consumer preferences, Miami's top real estate developers are once again rethinking their amenitization strategy in an attempt to future-proof their properties. Health and hygiene are the new top priorities, with touchless technologies, antiseptic materials, and open-air spaces now emerging as tomorrow's "must-have" amenities.

Multifamily Resources

NMHC — Coronavirus (COVID-19) Hub
NAA — Coronavirus Resources and Guidance
Fannie Mae — Multifamily COVID-19 Support
Freddie Mac — Multifamily Business COVID-19 Updates

Retail

CNBC: A new report from Green Street Advisors predicts that over 50% of department stores anchoring U.S. malls will close permanently by the end of 2021. As these closures trigger co-tenancy clauses that allow in-line tenants to reduce their rent or even break their leases entirely, the ensuing ripple effect has the potential to wipe out all but the best-prepared mall owners.

Bloomberg: Still burdened by debt from its 2011 leveraged buyout, J. Crew is set to be the next retail domino toppled by coronavirus. The struggling apparel chain—whose stores are all closed due to the pandemic—is preparing to file for Chapter 11 bankruptcy, though the company maintains that its plans could change as market conditions evolve.

CNBC: With some of its national tenants reporting a 200% increase in curbside pickup orders, shopping center REIT Kimco Realty believes the trend is here to stay. Kimco, which owns more than 400 retail and mixed-use developments, is adding designated pickup spaces to the parking lots of 23 Texas shopping centers—and the rest of Kimco's portfolio will follow suit in the coming days.

Retail Resources

ICSC — COVID-19 Information & Resources Center

Office & Industrial

Wall Street Journal: New York's office landlords are, not surprisingly, facing numerous headwinds due to COVID-19. According to the firm's Q1 earnings presentation, Empire State Realty Trust collected only 73% of its April office rents. While competitor SL Green Realty Corp. fared better in terms of collections, NYC's largest office landlord is looking to strengthen its balance sheet by selling off non-core properties and discounted debt. Other office REITs, including Boston Properties and Vornado Realty Trust, are scheduled to report earnings in the first week of May, and analysts are eager to see just how deep the damage goes.

Wired: The reign of the open office layout is finally at an end. As businesses seek to reconfigure their workspaces in response to coronavirus, the humble cubicle is poised to make a comeback. Following in China's footsteps, U.S. offices may soon find themselves outfitted with a host of pandemic-fighting features, including plexiglass dividers, hand sanitizing stations, temperature checkpoints, and disposable desk covers.

Business Insider: With co-working companies among the hardest hit by coronavirus, the future of flex-office just got a whole lot more interesting. In the near term, experts foresee more layoffs and more consolidation, with many landlords choosing to partner directly with operators as opposed to leasing them space. But the long-term trend towards remote work—accelerated by COVID-19—may give rise to a co-working renaissance, in which large companies shift to a decentralized workforce spread across many flex-office locations.

Commercial Property Executive: In spite of the pandemic, brokers are giving industrial real estate a "positive prognosis," but some markets stand to benefit more than others. The abrupt transition to e-commerce is amplifying the need for warehouse space, with major distribution hubs and point-of-entry markets among the more obvious winners. On the other hand, while many tertiary markets will see a surge in demand for last-mile logistics, those that are already overbuilt will need more time for existing inventory to be absorbed.

Office & Industrial Resources

NAIOP — CRE Response to COVID-19