NAIOP June Coronavirus Impacts Survey Results

Originally published on June 23, 2020 by Shawn Moura Ph.D.

Last week, NAIOP conducted its third survey of its U.S. members on how the novel coronavirus has affected their businesses and local markets. The survey examines the outbreak’s effects on conditions in commercial real estate and evaluates how firms have responded. The June survey results reveal that development conditions have continued to improve since May.

For the first time, NAIOP is publishing data it has collected on rent payments and tenant requests for rent relief over the last three surveys. As with other metrics, these data reveal gradual improvement in market conditions since April.

The survey was completed by 351 NAIOP members between June 15 and 17, 2020. Respondents represent a range of professions, including developers, building owners, building managers, brokers, lenders and investors.

Below is an overview of the survey results with direct quotes from the participants (in italics) followed by raw data from the survey and a profile of respondent characteristics. Results from May’s survey can be found here.

Continued Improvement in Conditions for Development and Acquisitions

Most of the outbreak’s effects on current development projects continue to soften. Two-thirds of respondents (66.1%) continue to report delays in permitting or entitlements since the outbreak, but other measures continue to improve (see chart below). Most notably, fewer respondents report a decline in leasing (49.4% vs. 57.2%) or delays in financing (16.1% vs. 23.3%) than they did in May. Local government restrictions on construction have also eased, with less than one-quarter of respondents reporting a mandatory halt, compared with about a third of respondents reporting mandated halts in May.

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