Dear Radix Friends,

I hope this week finds you healthy and you are still managing through working from home and the new “normal.”  We are almost a month since most states started lockdowns and we are seeing reverberations across all markets. Also, leading indicators such as traffic and leases that declined precipitously have started stabilizing and indeed are slightly higher overall than last week. With occupancy and leased percentage trailing YoY trends, we have seen Net Effective Rents come down as well and erased the lead from the same time last year.

We are seeing an accordion effect with leading indicators slowing down quick and fast (traffic and leases) which are now indeed improving as different operators figure out ways to drive traffic and leases virtually. NER declines were more gradual, but are likely to persist as macroeconomic headwinds are very strong with continued lockdowns and unemployment increasing to record levels.

Please let me know if you have any questions or feedback.

Thanks and stay healthy,

Blerim