Current Concerns - Investors

[Savannah Kennedy]

I have noticed a decline in the amount of investors during the COVID-19 situation. Investors, what are your main concerns during this time? I'd love to hear feedback!

[Benjamin Aaker]

My main concern is for commercial properties, especially those doing retail. I have a few apartment buildings and April has been status quo for rents. May might be different but hopefully there is enough government stimulus for tenants by then. There is not much for retail and service businesses yet. Further, the government is essentially telling people to not go out and shop, which continues harm to these businesses (while helping the public health). If you are in the market for a commercial property you should take a hard look at how long you think people will be staying home. If we are able to 'flatten the curve' that will be great for hospitals and health, but to flatten it means to lengthen it, too. People will be staying in longer and businesses will continue to suffer.

On the multifamily side, people will still need places to live. I think that the government eye will be on helping the individual tenants for the foreseeable future. I think those able to weather a few months of decreased rents will be in a position to buy multifamily at a discount. In fact, I put in an LOI on a 16 unit today.