4A — August 14 - 27, 2020 — DelMarVa — M id A tlantic Real Estate Journal
www.marej.com
D el M ar V a Commercial-Industrial Realty Council Great CRE Events...Cont. Education...Speakers...Networking www.CircDelaware.org
2 0 2 0 d i r e c t o r s — O F F I C E R S — President: Robert Stenta Pettinaro Management, LLC Vice President + Program Chair: Jay L. White , MAI, CRE® Apex Realty Advisory Treasurer: Barton L. Mackey, Jr. Patterson-Woods Associates Secretary: Bayard Snyder , Esq. Bayard & Associates — D I R E C T O R S — Education Chair: Cynthia Fleming Jones Lang LaSalle
Commercial Real Estate Post COVID-19 Outlook Panel by: Robert Stenta (CIRC President) and Jay L. White,MAI CRE (CIRC Vice President)
“W ithout the ability to meet in person at our monthly membership meetings, on June 25 th we hosted our first-ever CIRC Zoom meeting, with an es- teemed panel of commercial real estate professionals and over 150 industry attendees. Here is a brief summary of what was discussed and what we learned. The COVID-19 business shutdown was swift as it spread over the local econo- my, drastically changing consumer behavior and forc- ing area landlords, brokers, and economic development
COVID-19 has changed many things, including our industry. But after dealing with adversity and adapting to the "New Nor- mal," hopefully with a vaccine over the mid-term, the market uncertainty will surely diminish and, eventually, we can resume business and economic gains. Hopefully we will be able to look back on these days with pride in the way we worked together to get through it safely. But until that day, we have a lot of work to do, so let’s get to it!” Look for CIRC's upcoming events in the fall, starting September 9. Meet the Presenters (1st Row - Program organizers): Robert Stenta , Pettinaro Jay L. White , Apex Realty Advisory Janet Pippert , Landmark Sci. & Eng. (Lorraine Sheldon, Emory Hill- not shown) (2nd Row, Moderator & Panelists): Bill Russell , Wye Realty Advisors (Mod.) Jeffrey Flynn , City of Wilmington E.D. Robert Buccini , Buccini/Pollin Group (3rd Row, Panelists): Neil Kilian , SIOR, CCIM, NAI Emory Hill Pamela Scott , Esq., Saul Ewing CIRC Sponsors Polls 1. Should Rob Stenta shave the COVID- Stash and get a haircut? 67% - No, I like the Wyatt Earp look! 33% - Yes, it's got to go! 2. How much do you think local commercial real estate values have changed since COVID-19 began? 3. What is your outlook for local office leasing demand over the remainder of 2020? 55% - Absorption will be flat 30% - Absorption will decline 15% - Absorption will increase 4. What will our economic recovery look like? 72% - "Nike Swoosh" (slow & gradual) 55% - Downward by < 10% 11% - Downward by > 10% 30% - No change/held flat 4% - Increased
Membership Chair: James Manna BrightFields, Inc. Past President:
professionals to adapt to the uncertainty of the market as well. Most of the com- mercial landlords have reported the need to provide some sort of rent relief to a portion of their tenants, primarily to re- tailers. Typically this relief has been in the form of rent deferrals as opposed to rent reductions or abatements. Retail tenants have clearly been the most impacted, with restaurants, day cares, salons, and, of course, fitness centers being the hardest hit. While some office tenants have been adversely impacted, most have been able to proceed smoothly with their employees working from home, and, while they aren’t excited about paying for space they aren’t using at the moment, they have continued to pay their rents, largely, on time and in full. On a positive note, residential multi- family leasing activity and rent collec- tions have remained strong, while hotels are slowly, but surely, recovering after a significant and painful drop in their occupancy rates that occurred when almost all business and personal travel came to a screeching halt in March. The “shining star” in all the commercial real estate sectors, post-COVID, has been industrial. With its important place in our world when it comes to the manufac- turing, storage, and delivery of essential products and goods, demand for indus- trial space has increased and shows no signs of slowing down. In Delaware, construction was deemed essential during the shutdown, allowing major construction projects to continue with new safety guidelines. Amazon’s
massive (3.8 million square foot) distri- bution center on a portion of the former GM Boxwood plant at Del. 141 was one of the most visible projects we have watched proceed rapidly during the shut- down. In addition, the demolition of the former DuPont Barley Mill Plaza office complex was also completed during the shutdown, continuing to pave the way for a mixed-use complex which will include Delaware’s first Wegmans. In short, our panelists, and most of CIRC’s membership, have kept very busy combating the impacts of the virus in its own unique ways. Whether it is by help- ing a company get its paperwork together to apply for a federal PPP loan, working through a rent deferment plan, retrofit- ting offices to promote more social dis- tancing, or ensuring office buildings have enhanced cleaning/janitorial services to fight the virus and make it safe for people to return to the office. There is so much we are doing to help our community through these challenging times. With more projects pushing forward as our industry looks to the future, the com- mercial real estate community is banking on people desperately wanting to get back out into the world. Whether for a face-to-face meeting with a client after months of “Zoom Fatigue,” or shar- ing a great meal with friends at a favorite restaurant, commercial real estate will always be a very important part of all of our lives.
Donald Robitzer The Commonwealth Group Benjamin Berger, Esq. Berger Harris, LLC Carmen Facciolo NAI Emory Hill Michael Hahn 44 Business Capital Jim O’Hara , Jr. NAI Emory Hill-Retail Division Lorraine Sheldon NAI Emory Hill Daniel Wham DSM Commercial Real Estate Ryan Kennedy Harvey Hanna & Associates — E X - O F F I C I O — Business Manager: Janet S. Pippert Landmark Science & Engineering
Legislative Lobbyist: C. Scott Kidner C. S. Kidner & Associates Legislative Affairs Chair: William Lower Harvey Hanna & Associates Economic Dev. Liaisons:
Robert Chadwick , NCCC EDC Joseph Zilcosky, Div. Small Bus. Kurt Foreman, Del. Pros. P'ship Jeff Flynn, City of Wilmington c o n t a c t u s Janet@circdelaware.org (302) 633-1705 www.circdelaware.org
16% - "W" recovery 12% - "V" recovery
5. How optimistic about the future are you after hearing from our panelists?
51% - More optimistic 47% - About the same 2% - Less optimistic
Made with FlippingBook - professional solution for displaying marketing and sales documents online