I sent out 1 March billings covering February 2020 today. It was a very good month. I expect 1 April billings will be down 10% or so, and then 1 May billings to crater 50% or more as clients react and assess their projects.
Lending rates are at an all time low, and residential refi applications are soaring. My Prime -1% HELOC is going to get $200/month cheaper and keep the dogs in kibble. On the commercial end of things, rates may be lower but standards are higher – 70% LTV may be a thing of the past as “value” is re-calibrated.
I think the dream projects in the Casino core will be grinding to a halt if they were ever more than dreams in the 1st place. CAI Investments at Harrahs, Jacobs at 4th and Keystone, Compass Point at 5th and Center. 661 Center? Woolworth’s at 101 NVA is already cancelled (WeWork). T3 has no momentum with nothing happening around it.
I could never figure how you could buy $90/SF land in Downtown and create a viable project, and we have some $200/SF land purchases. In my opinion, the Casino Core is a “run away” sector. I suspect the developers will soon agree.