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Factors that bode well for homebuildings include record low mortgage rates and a limited home inventory coupled with increased demand from residents who continue to work from home.
Given demographic trends RCLCO forecasts much greater demand than the current pace of production, which could result in a significant supply shortfall.
Irrespective of scenario, we expect tough sledding ahead for the economy … as job gains continue to slow, business failures persist, and wage growth and spending remain challenged.
"A standoff with tenants could result in tenant default and eviction, or it could lead to more constructive negotiations between tenant, owner and lender," according to NAOIP.
Due to the coronavirus pandemic, the U.S. economy had its worst performance in the second quarter in its history -- but it was in line with experts' predictions.
The sale of distribution warehouses accounted for a third of the second quarter deal volume among industrial properties, according to Real Capital Analytics.
"We're more likely to see a good recovery in the second half of this year or probably the first half of next year as the pandemic comes more under control."