What's the Latest with the Commercial Real Estate Market
September 15, 2020
Here's the newest edition of our continuing series on What's the Latest with the Commercial Real Estate Market.
To dive deeper into the state of the commercial real estate market and the economy here and abroad, keep on reading. (We have graphs!)
TL;DR - We're taking a look back at some of our previous posts in this series to see where we stand on some key issues affecting the commercial real estate market.
Part I: Restaurant Patronage
In my post from April 2, I examined what was happening to number of seated diners at restaurants across the country. That number plunged to virtually zero for just about everywhere in the country a few weeks after the pandemic began to spread in the US.
From the chart above, we see that the number of seated diners has certainly gone up from where we were back in April. However, for most of the country, restaurants are only experiencing about 50% of the business at this time last year. Plus, September and October are notoriously slow months for restaurants. So while this is good news compared to six months ago, it’s nowhere near great news.
Part II: City of Tampa Building Permits
In my post from June 1, I examined what was happening with the number of building permits being pulled in the City of Tampa. While the three weeks after the lockdown was enacted saw a dip in the amount of permit activity, within a month the level of building permits being issued was back to pre-lockdown levels.
From the chart above, we can see that the number of building permits pulled in the City of Tampa increased to their highest levels in the last calendar year. The early part of this bump could be attributed to a make-up of the lost permitting activity due to the shutdown. But, the last two months have seen continued sustained permit activity which means that the construction activity previously planned is still well underway.
Part III: Coronavirus Cases in Hillsborough County
In my post from June 15, I examined what was happening with the number of Coronavirus cases being reported in Hillsborough County. No surprise to see that the number of cases increased as more of the state re-opened. What concerned me then was about the future expectation of the number of Coronavirus deaths.
From the chart above from the State of Florida's Health Department, we see that the number of deaths from the coronavirus have not increased with the rate of increase for new cases. Without a doubt, one death from coronavirus is one too many. Every effort should be made to maintain social distancing and to wear masks by everyone in order to curb the spread. However, as of September 13, Hillsborough County had recorded nearly 40,000 cases with fewer than 600 deaths.
Here's to the Fundamentals.