economy

Temporary Continues to Become Permanent

As more and more of the economic impact of the COVID recession become permanent, the length of the recovery will be longer.

Yelp is reporting that 60% (!!!) of closures are now permanent. That is a huge hit to the small business community that will likely take decades to recover from. This is also bad for CRE of course.

I expect more business closures this fall. Although restaurants have been able to survive due to outdoor seating, not many people will be able to eat outdoors in 2 months in many parts of the US.

By Christopher Schwarz, ago

Come Fly with Me! (And Maybe Work and Learn)

Many people are working remote and now students are learning remote as well. I was always curious what would happen when things started to reopen in terms of productivity.

Well, let’s take a look at TSA passenger data.

Typically after Labor day air traffic drops as the summer vacation season ends.

Well, not this year! In fact, we are now having another ramp up in air traffic as people take advantage of remote work and learning. This is bullish for the airlines as this helps fill the gap for business travel that probably hasn’t ramped up.

Of course, the question is how much work and learning happens on the beach…. I’m guessing not.

By Christopher Schwarz, ago