How COVID-19 is Affecting Key EB-5 Industries

The COVID-19 pandemic rages on, and as the number of infections rises, so too does the unemployment rate. The crisis has particularly impacted certain industries, such as real estate and hospitality, although most industries are reeling from the sting of COVID-19. Since real estate and hospitality are two of the biggest EB-5 industries, investors in the EB-5 Immigrant Investor Program should prepare for uncertainty and setbacks in their projects. It’s recommended to keep up to date on the developments in the industry of your EB-5 project, and below are a few of the best resources for keeping up with the market.

How COVID-19 Is Affecting the Commercial and Multifamily Real Estate

On April 1 and 2, Yardi Matrix held two different webinars: the first on the ways COVID-19 is affecting multifamily real estate and the second on its effects on commercial real estate. Any EB-5 investors who are paying members of the site may download the recordings, which offer practical and focused information.

For additional information, head over to CBRE and browse the flash calls the organization has held to explore the impacts the novel coronavirus has been having on the real estate industry. Recordings and notes from the flash calls are available for download on the CBRE website, free to anyone. The March 18 call regarding how the virus is impacting commercial real estate and the two March 27 calls—one about COVID-19’s effects on multifamily real estate and the other about the things occupiers should concentrate on during the pandemic—are particularly informative. EB-5 investors and project developers alike are encouraged to listen to both CRBE’s and Yardi Matrix’s opinions and forecasts for the real estate industry.

How COVID-19 Is Affecting the Hotel Industry

STR is keeping EB-5 investors up to date on the developments in the hospitality sector through its various webinars. It provides a comprehensive overview of the global hotel industry, with episodes covering regions around the world. Every Thursday, STR publishes a webinar looking at the updates in the U.S. and Canadian hospitality industries.

For a specialized report on the hotel industry during the coronavirus outbreak, take a look at Marcus & Millichap’s Coronavirus Hospitality Special Report: 2020 Outlook. The report details the hotel industry’s struggles and the governmental relief efforts aiming to assist the hospitality sector.

Finally, an article titled The Importance of Financial Relief for the Hotel Industry, published by HVS on March 20, 2020, also provides useful insights into COVID-19’s impact on hotels. Through the article, readers can gain a clear understanding of how different types of hotels generate revenue and how COVID-19 severely threatens their cash flows.

Project-Specific Resources

EB-5 investors and project developers from all over are following the developments of COVID-19 closely to determine how it will impact their projects. To fully determine the effects this situation will have on a project, however, it is strongly recommended to check analyses and updates from the EB-5 project’s specific state, county, and municipality as well as the broad industry. Not all states have implemented the same measures against COVID-19, meaning some are seeing less of an economic impact, and some have introduced their own financial aid packages to boost local businesses. Even outside of the COVID-19 pandemic, an EB-5 project’s region has a strong influence on its performance, so investors should always consider location-related factors in their EB-5 due diligence when selecting a project for investment.

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