MetroIntelligence Economic Update by P. DUFFY
Initial unemployment claims dip 19 percent to under 1 million, continuing claims dip 4 percent to 15.5 million
In the week ending August 8, initial unemployment claims were 963,000, a decrease of 228,000 from the previous week’s revised level. Continuing claims during the week ending August 1 were 15,486,000, a decrease of 604,000 from the previous week’s revised level. Continuing combined state and federal claims for the week ending July 25 fell 3 million to 28.3 million.
Zillow: Both urban and suburban areas remain hot sellers’ markets
Are people fleeing the cities for greener suburban pastures? Some faint signals may have emerged in certain places, but by and large, the data show that suburban housing markets have not strengthened at a disproportionately rapid pace compared to urban markets. Both region types appear to be hot sellers’ markets right now – while many suburban areas have seen strong improvement in housing activity in recent months, so, too, have many urban areas.
Office lease concessions rising as net effective rents fall 6.6 percent year-on-year
Office lease concessions in the form of free rent and tenant improvement allowances rose sharply in Q2 2020 as U.S. office demand fell by its biggest amount since 2009. Amid reduced leasing activity, base rents for office space in the largest U.S. markets generally remained stable, falling 1.1 percent year-on-year. Instead, property owners provided more favorable concessions to tenants, causing net effective rents to fall 6.6 percent year-on-year.
Hotel occupancy continues to rise each week, but still down one-third to 49.9 percent year-on-year
U.S. hotel occupancy has risen week over week for 16 of the last 17 weeks, although growth in demand (room nights sold) has slowed. Year-on-year, however, occupancy is still down 32.6 percent to 49.9 percent, the Average daily rate (ADR) is down 24.9 percent to $100.88, and Revenue per available room (RevPar) is down 49.4 percent to $50.37.