Retail

Retail rent trends are hard to predict and could vary between essential and non-essential retail tenants.

Investor activity in the net lease space has remained strong for necessity-based uses, publicly-traded companies with strong financial positions, and uses such as quick-service restaurants with drive-thrus.

FSRs tried to pivot to save their businesses by ramping up delivery programs, streamlining their menus, and repurposing their parking lots as temporary drive-thru's, however, the shift to service their customers off-premises was difficult and costly.

"Now that a second surge of COVID cases is sweeping the U.S. and authorities are re-issuing social distancing measures, the retail market could continue to suffer over the next few quarters until a vaccine is developed," the report says.

The Allen Matkins-UCLA Anderson survey shows office demand decreasing due to work-from-home policies, industrial only moderately decreasing due to online shopping, retail continuing its downward spiral and multifamily only moderately decreasing.

With amenities such as a conference center and wet labs, the repurposed development Pegasus Park will open in early 2021 and feature four components: a biotech plus hub, a social impact hub and entertainment/dining venues.

SRS closed a VCA Animal Hospital in Fountain Valley at a record-breaking cap rate, just one example of the demand for essential-use properties.

Of the respondents who replied that they were able to pay some of their rent, 53% said they were able to pay half, while 29.8% expected to pay less than half.