Mr. Merabi was on a conference call to discuss the pandemic’s impact on commercial real estate leasing and the economy, one of the other panels were Ben Breslau, chief research officer of Jones Lang LaSalle JLL Americas on 4/2/2020.
Some of the panelist expressed Coronavirus puts real estate ‘on brink of collapse’ & “If not immediately addressed, this cycle cascades into chaos”. Mr. Merabi asked if it is true that office building to malls to hotels to warehouses to apartments will collapse then where would you/we live, shop, work or play? These are essential properties in every communities!
A few of the panelist laid out a gloomy outlook in a detailed . The global battle against coronavirus — a medical fight that the entire panel fully supports — has wrecked our industry, one that was in seemingly good health two months ago.
“The economic impact, magnified by widespread total industry shutdowns throughout the American economy, could be exponentially worse than the economic effects of the 1987 crash, September 11th attacks and 2008 recession, combined. The long-term impact on the economy could be catastrophic.”
Mr. Merabi disagreed with those predication,
Mr. Merabi said “I think this pandemic and resulting economic chaos is at best, a grossly overstated risk( Rightfully so) before the pandemic our economy was in great shape and if and when the US is able to get the virus under control so that the economy can start to open back up, and the fed’s stimulus Aid, Relief, and Economic Security (CARES) Act, It is big, it is timely, and it directly helps individuals, businesses, and state and local governments. Naturally we will rebound quickly, and we should stop saying *RECESSION*a recession is defined as two consecutive quarters of negative GDP growth, in which we do not have yet, and will not have. The 2009 American Recovery and Reinvestment Act came with many regulation that killed businesses, CARES is more appropriately thought of as relief—not stimulus.” He added in the last century we have had 7 recession and this is the 8th but it is not because there were no GDP growth, high unemployment numbers, no productivity
but now it is because the virus had brought our activities across the country to a grinding halt. We must remember that : “The prior recession started in the financial markets and affected the real economy; this one has started in the real economy and it is affecting the financial markets,” Mr. Merabi reiterated.
We must keep in mind that the problem right now isn’t subprime mortgages and banks, hedge funds making bets they shouldn’t, or the high price RE or CRE — it’s that the US in the midst of a global health crisis and is taking extreme economic measures in an effort to protect the public’s well-being. “The faster we can get this pandemic under control* flatting the curb*, the faster we can snap back.” so let’s help our local economy ASAP. Mr. Merabi ended his panel advisory speech by :
How can I spend money to help?
If you have extra cash on hand right now and aren’t concerned about parting ways with it, there are plenty of things to do with it to try to help — order delivery from local restaurants and grocery stores, or buy gift certificates for local businesses that you can use at a later date. Amazon is one company not worried about its business right now, so maybe get toilet paper from the market down the street instead. Tip the delivery person generously. Instead of ordering through a delivery app, try calling the restaurant instead. Lower-wage service workers are going to be the ones hurt the most the fastest. “A lot of small businesses that tend to work on fairly small margins to begin with are going to be very hard hit,” said Mr. Kambiz Merabi
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This Article/s Published April 2, 2020 LA, has been Updated & posted at 8:01 AM PCT, April 3, 2020.