Hampton Roads November 2020 – Key Take-Aways

• Industrial and Multi-family remain the darlings, but suburban office deals are heating up.
• The attorneys are all focused on what can be done (depending on Landlord or Tenant representation) to shore up force majeure clauses.  Tenants are asking for automatic rent reduction mechanisms, but Landlord are reluctant to agree.  Currently, existing relationships between landlords and tenants are working together to bridge the short term gaps.
• Colliers reports they will have their best year in the multi-family sector and are likely to see more deals close by year end, and expecting a strong 2021.
• On the lending side of multi-family, Freddie Mac has advised with their backlog not to expect feedback before 75 days, which is up from the norm.  In the Hampton Roads region, Fannie Mae is a little more skittish as they have historically been in military concentrated areas.
• Reports are that the number of applications coming across regional planning commissions are up two to two and a half times.
• There is a lot of discussion about plans for changing office environments for social distancing, but no long term changes are being seen yet.
• Dollar Bank reports heavy activity in the multi-family space with phase 3 of a project underway (after phase 1 and 2 consisted of 100 units each)