Highlights

  • AEW expects rolling regional infection surges to continue until an effective Covid-19 vaccine or other treatment is found. Nothing gets fully back to “normal” until the virus is no longer a concern.
  • The contraction phase of the current recession was sharp and swift, with real GDP declining at annualized rate of nearly 33% during the second quarter. Economic data for May and June showed a sharp increase in activity, which has now largely flattened.
  • Second quarter property market data is only beginning to show the impact of reduced economic activity, with vacancy rates moving up, net operating income growth weakening, and transaction volumes plummeting.

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