Arbor’s Ivan Kaufman Discusses Commercial Real Estate Returning to Normal on CNN
Arbor’s CEO Forecasts Commercial Real Estate’s Recovery from COVID-19
Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), was interviewed on CNN Business “Markets Now.” Sharing his views that commercial real estate will emerge from the COVID-19 crisis, he said, “It’s not all doom and gloom. It’s an adjustment.”
In the article “Commercial Real Estate Flounders as Housing Market Booms,” reporter Paul R. La Monica contrasted the pandemic’s impacts on housing compared to other real estate asset classes.
Kaufman noted that the hospitality and retail sectors have taken a devastating hit. However, he opined that people will return to their offices. The article stated, “Kaufman said that many big tech companies, which have done well during the pandemic, are still committed to having people come to physical offices occasionally instead of doing all work remotely.” With major urban markets being some of the most impacted labor markets by COVID-19, this return to offices will help them ease back into normalcy.
“The complete elimination of offices is not happening. Many companies realize they still need them even though demand may be softer,” Kaufman told CNN.
He also predicted that the reopening of schools will be a factor in the return to normalcy. He pointed out parents can more readily return to their offices, after kids are routinely back in their classrooms.
The article covered more of retail’s challenges, with Brookfield Property Partners laying off 20% of its retail division due to the decline in shopping malls. However, La Monica also reported that essential retail with strong online, takeout and delivery services, along with the industrial sector, are thriving.