CRE Industry Reacts to $900B Relief Package

By Barbra Murray

In general, by supporting the economy temporarily, the bill will support commercial real estate, giving people funds to help continue paying rent for their apartments and providing businesses with loans that can assist with lease payments. “There are several industries that will see direct support such as retail, where enhanced unemployment benefits and direct payments will bolster consumer demand,” Spencer Levy, chairman of Americas Research & senior economic advisor with CBRE, told Commercial Property Executive. “Many businesses will also be able to receive an additional round of funding via the paycheck protection program, some of which can be used to pay rent. This could be especially important for businesses like restaurants and smaller accommodation services companies.”

John Chang, senior vice president & national director with Marcus & Millichap Research Services, also pointed to the legislation’s ancillary benefits for commercial real estate, noting that the $600 stimulus checks will give a much-needed boost to retail sales that have been softening in recent months, potentially bolstering the retail and industrial sectors. “The inclusion of the Paycheck Protection Program will help keep personnel employed and companies operational over the next few months, supporting office and industrial demand,” Chang told CPE.

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