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Webinar: COVID-19 Implications for Multifamily Investors

Kristina Garcia • 4/16/2020

Multifamily Webinar Replay (image)

Watch Cushman & Wakefield’s webinar to learn about the impact of COVID-19 on the multifamily space and implications for investors.

Topics included:

  • Economic and policy update from Rebecca Rockey, Economist, Global Head of Forecasting
  • Multifamily sector fundamentals and impact from Kristina Garcia, Associate Director of U.S. Multifamily Capital Markets Research
  • Property management perspective with commentary from Rick Graf, President & CEO of Pinnacle
  • Capital markets discussion from Robert Given, Vice Chairman, Capital Markets

Multifamily Webinar (image) Multifamily Webinar (image)

Key Takeaways: Economy & Policy

  • A sharp decline in economic activity in Q2 is expected and a V-shaped recovery is less likely than a U-shaped recovery.
  • Initial claims data set three records in a row in March: job losses are mounting quickly.
  • Income risk from job losses is the single largest threat for multifamily.
  • Policy responses are explicitly targeting household cash flow, which should be supportive for multifamily.
  • Actions by the Fed also benefit Agency-backed and AAA-rated private CMBS markets.

Key Takeaways: Multifamily

  • Multifamily remains relatively resilient with no fundamental changes to underlying drivers of demand in the long-term after digesting near-term shocks to NOI.
  • The increase in delinquency rates in April are not as pronounced as the market had feared. The true impact will begin to surface in May and June. 
  • Early mitigants to COVID-19-related declines in traffic, leasing, and collections include PropTech, virtual marketing practices and e-payment platforms that have been well-established.
  • Transactions began to pause in mid-March as the debt markets destabilized and investors wait to see the impact on operations in April, May and June.

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