Letter to the Editor of Banker & Tradesman by Jason S. Weissman
The communal, personal and economic effect of the coronavirus has infringed every fabric of our daily lives. This unwelcome disruption has generated a panic that we must quickly transcend. Staying healthy is paramount – both physically and mentally.
We need to be mindful and act responsibly to minimize effected individuals. This includes properly washing hands and listening to the CDC. Companies that are set up with remote access for their employees will experience less impact to their business, and provide the ability to focus on their respective trades and the overall economy.
Still in its infancy in the United States, the economic consequences of the coronavirus epidemic have caused the stock market to crash and the US Treasury bond yields to hit record lows. While I hope the recent volatility diminishes, the market will likely not fully return until the spread of the coronavirus decelerates.
The same panic and speculation have crept into the real estate industry. Please stay calm and recognize that today’s realities are based on an event and not a bubble. Further, and unlike many plays in the equities market, decisions for real estate investments are based on a seven- to 10-year action plan.
Real estate fundamentals are strong. Gateway Cities are expanding in and around CBDs, with an abundance of liquidity waiting to activate their allocated dollars in both urban and suburban markets. Today continues to be a great time to buy a home and invest in high-quality commercial real estate.
While the drivers and circumstances were very different in the 2008 recession, the real estate investors that persevered were the landlords that stayed the course. When many owners froze out of fear, a few proceeded with their planned capex projects and growth strategy. Staying the course positioned their properties to achieve full occupancy and maximize NOI.
Do not let panic paralyze the entire country. Stay the course and stay strong.
— Jason S. Weissman
CEO, Boston Realty Advisors