Mick Law, P.C.: Views on Post-COVID Alternative Assets
The negative effects of COVID-19 on the commercial real estate market have been well-documented over the last several weeks, although at this juncture, some assessments may be more speculation than fact. The effects on hospitality, travel, sports, and food and beverage assets are obvious; others, such as data centers and dedicated logistics, may be more muted. The trough in the commercial real estate space will lag the macroeconomic trough by about six months (probably eight or longer given the stimulus Band-Aid). The timeframe for normalization in the aforementioned industries will be significant.

Like most businesses, we have moved fully remote for all of our employees and have suspended all travel. As the health and safety of our employees and clients is always our top priority, we are continuing to monitor and follow all guidance from the CDC as well as local, state and national government.

Bradford Updike, LLM, JD
Mick Law, P.C.
April 15, 2020

On March 25, 2020, the Securities and Exchange Commission’s (SEC’s) Division of Corporate Finance released guidance regarding risk disclosures and other securities law obligations that companies should consider with respect to the coronavirus disease (COVID-19) and its related business disruptions (hereafter “Disclosure Guidance”). This was followed on April 8, 2020, with a Public Statement, whereby SEC Chairman Jay Clayton and Director of Corporate Finance William Hinman reiterated the SEC’s preference for companies to be proactive in their future efforts to inform the public about the specific effects of COVID-19 upon a disclosing company’s operations in filings and in offering related materials.

Let me play the antidote to a lot of “new normal?” questions coming my way. It is important to stay methodical, thoughtful (as in historically curious), and realistic, and avoid those consultants and Twitterati whose role it is to ever pretend (and sell) the next new movement or thing.