Apr 28, 2020
How the Pandemic Economy Has Hit The Hospitality Business in Phoenix
w/ Brandon Brown of the Phoenix Business Journal
- BRT S01 EP12 4-26-2020
Restaurant and Hotel industry in Phx during the Pandemic
Guests: Brandon Brown w/ Phoenix Business Journal
How restaurants are transitioning to takeout business model
Are restaurants that cannot adjust just closing for the spring
Ex – high end restaurant
General mood of restaurant owners – belief things will improve in fall?
Future Projects / Hotel Industry
Future of restaurant projects – what has been put on hold or cancelled
Hotels – what hotels remain open, what capacity
Future of Hotel projects – any cancelled
Guest: Steven Hensley
w/ Belfiore Real Estate Consulting on Phx Real Estate
Phoenix Real Estate Industry
How is the industry reacting to this crisis, is business just on hold
Current projects – on hold, proceeding
Do realtors continue to prospect for future deals
General mood of realtors – belief things will improve in fall?
Future Projects / Commercial Real Estate
Office Vacancy rates, and business not paying rent (could move to Seg 1) *
Future of projects – what has been put on hold or cancelled
Investment – what capacity is slowed down, or are projects years in making so will proceed
How the crisis will affect how companies do business – more virtual short term office space
MB on Covid 19 Health Crisis of 2020 vs the 2008 Financial Crisis
Economy – all data shows worse since early 2009
Stimulus of $2 tril and counting, maybe $400 bil more
26 million unemployment, headed for 15%
Compare to 2008 recession
3% GDP decline, 10-20% overall decline in business in 2020
business down over 50% in some industries
Manufacturing and service down almost 50%
Car – can they recover, will Gov’t bailout? 2009 needed $82 bil loan, is BK likely?
Travel off 85%, Hotel down at least 70-80%
Oil down 50%
Retail – co’s going to online mkt have hope, online up 50%, online was already threatening retail
1 in 4 jobs retail related
15k stores could close, 600k workers already furloughed, and major retailers like JC Pennys, Nordstrom, Gap, Macys, Kohl’s in trouble – expect BK and rent abatement
others will go under – up to 50% of retail could fail, bk as bailout prob will not happen
Macerich – mall operator in trouble with stores closed
NBC News – retail has been on life support 4/7/2020
Real Estate Topic: https://brt-show.libsyn.com/category/Real+Estate
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Business Roundtable with Matt Battaglia
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