MEDICAL OFFICE LOOKS FOR REOPENING REBOUND TO END 2020

USDA SEES LITTLE MOVEMENT ON LAND VALUES

NEARLY 5 OUT OF 6 NYC RESTAURANTS UNABLE TO PAY FULL RENT IN JULY

HOTELS FORECASTED TO LOSE $ 75B IN REVENUE

Seven months after the initial shock of the coronavirus pandemic to the American economy , real estate analysts are now offering insights into where certain sectors may go in the near future . For the medical office market , the final few months of 2020 look to be slightly soft , according to the U . S . Office Market Report from Transwestern and Devencore .

The report suggests activity may struggle to keep up with 2019 levels , as tenant walk-throughs , leasing , and development are projected to decline slightly . But 80 percent of respondents to a survey expect asking rents to remain at pre-COVID-19 levels , while 70 percent expect more robust concession packages . The long-term outlook for the medical office sector also remains bright , thanks to pent-up demand and a growing need for medical facilities ( in addition to telehealth services ).

Despite the recent national economic turmoil , average farm real estate values held steady in 2020 compared to the previous year . The average cost of an acre of land is $ 3,160 , according to the United States Department of Agriculture ’ s National Agricultural Statistics Service annual report . The average costs for an acre of cropland and pasture also remained unchanged in the past year , holding at $ 4,100 and $ 1,400 , respectively .

While states experienced slight variations in average prices for land , no single area saw dramatic increases or contractions . The Midwest , for example , saw slight decreases in Wisconsin ( down 2 percent ), Iowa ( down 1.7 percent ), and Michigan ( down 0.2 percent ), while Illinois ( up 1.6 percent ), Indiana ( up 0.3 percent ), and Ohio ( up 1 percent ) realized modest gains .

Restaurant and bar owners in New York have had plenty of restless nights since the COVID-19 pandemic hit in March . A new report from the NYC Hospitality Alliance found that 83 percent of these establishments were unable to pay full rent in July . Additionally , 37 percent of bars and restaurants paid no rent at all .

Surveying nearly 500 owners and operators of these businesses , the NYC Hospitality Alliance found slight increases in missed rent obligations from June , where 80 percent were unable to pay full rent and 36 percent pay no rent . Indoor dining was prohibited throughout July , with outdoor dining and takeout / delivery options unable to make up the lost revenue .

Respondents cited difficulty in reconfiguring leases as a continuing challenge . Nine of 10 bar and restaurant owners / operators said landlords would not formally renegotiate leases , while 61 percent declined proposed rent deferrals .

One of the first casualties of COVID-19 , hotels are looking at $ 75 billion in lost revenue in the next year , according to Magid ’ s HTL Forecast Tracker . While parts of the national economy start to show signs of life , such as retail and office , hotels are faced with difficult prospects as travel and leisure lag . The pandemic is projected to result in a 29 percent decline in room occupancy in the 12 months following the report ’ s release in mid-August .

The research included a survey of consumers that paints a bleak picture , where consumers are becoming less likely to stay at a hotel in the near future . In the next two years , only 71 percent of respondents expected to stay in a hotel , down from figures of 74 percent in June and 89 percent in March . Looking a year ahead , 56 percent of consumers planned for a hotel visit , compared to 62 percent in June and 79 percent in March .

This page , left to right : Westend61 , huang Wang , Emily Keegin , James C Hooper