Survey Finds May Was Better Than April For Commercial Real Estate Developers
There was only one metric that got worse from April to May: The number of respondents who see delays in financing. Otherwise, coronavirus impacts on projects got slightly better for every metric that the survey measured.
June 8, 2020 | Angela Morris | GlobeSt.com
Compared to April, commercial real estate developers in May saw lesser impacts from the COVID-19 pandemic, although the improvements are slight and developers have come to believe their business interruptions will last longer than first thought.
Those findings were part of a survey from May 18 to 20 completed by 461 developers for the Commercial Real Estate Development Association, which uses the acronym NAIOP, which stands for the group’s former name, National Association for Industrial and Office Parks.
Even though 62% of respondents still say they’re seeing permitting or entitlement delays and 57% are still experiencing lower leasing activities, both of these metrics represent an improvement from the NAIOP survey conducted in April. There’s been a sharp decline developers saying they see delays or shortages in construction supplies: 31% said this in April, and only 19% experienced it in May.
