Video Index (with direct links)
0:00 Win an awesome Supercuts hat! (Don’t worry, not the one I’m wearing)
0:41 Gov. Newsom threatens to shut down the state again
1:51 Yelp will help you find a restaurant that is following proper protocols
2:01 Don’t forget to apply for your EIDL free money grant!
2:27 Senate Bill 939 is dead. Hooray!
3:11 Inland Empire housing market is HOT!
3:56 Amazon warehouse burns down
4:22 Stats on Inland Empire leasing volume and vacancy rates, and future forecasts
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Will California shut down again? That’s what Gov. Newsom is threatening to do, if we don’t wear masks and keep our social distance. Coronavirus cases in the state are on the rise, the percentage of positive tests is going up, and the rate of hospitalizations is increasing.
When looking at existing home sales, volume in the IE is down 10% versus last year, as compared to negative 15% for LA and OC.
This is great news for the Inland Empire, whose population has grown by 5 times the number of people as LA and OC over the past 5 years. The IE economy has continued to remain strong, due largely to the IE being the hottest market in the country for warehouses and distribution. Amazon is the largest private employer in the IE and has 14 warehouses in the Inland Empire. Well, 13, after one burned down in Redlands earlier this month. Job losses in the IE have been the lowest in Southern California, and 97% of residential rents have been collected during the pandemic, which is the fourth highest among national markets tracked.
So, the Inland Empire has weathered the coronavirus storm better than most markets and we hope for continued growth.
Retail Leasing activity in the first two quarters of 2020 has been the lowest it has been in 10 years. In addition, the fourth quarter of 2019 was the third lowest quarter of leasing volume in the past 10 years, so perhaps there was a slowdown coming anyway that was just accelerated and magnified by the coronavirus.
What’s going to happen in the future for retail leasing? Costar predicts that we will continue to see an increase in the vacancy rate through the first half of 2021 up to about 7.25%, and then as spaces get filled, vacancies will gradually decline and level off at around 6%.
Let’s hope that these predictions by Costar are worst case scenarios and that retail can rebound even sooner. I know we’re all itching to go shop and eat without fear of getting sick.
See you next week!
How to fill out the EIDL Application
ONT Airport drive-in movie tickets:
Article on the Explore America stimulus program
SF Chronicle article on permanent moratorium on evictions
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