Some of the lasting impacts of COVID-19 and George Floyd on workplaces, retail, media and real estate

By Mike Sunnucks | Rose Law Group Reporter

The COVID-19 pandemic and George Floyd protests are poised to have generational impacts on the economy, workplaces, technology, and consumers.

Those changes include short-term trends such as working at home because of COVID becoming more lasting and moves to make sure businesses and workplaces are prepared for the next pandemic or another Coronavirus wave.

“I don’t know if we will ever purchase a non-laptop computer in the future,” said Glendale City Manager Kevin Phelps.

Phelps said Glendale learned it needed more laptops and VPN access during the COVID lockdown.

Other cities, such as Goodyear and Tempe, are developing new protocols and programs to ensure healthy safety and build confidence with residents and employees as offices, parks, sports facilities and other venues open.

The city of Goodyear, for example, is working with Arizona-based HealthyVerify Certification, to develop health safety policies and programs and to train employees on best practices as it reopens recreation centers and programs, parks, and governments offices.

“It’s a great program,” said Goodyear Mayor Georgia Lord during Rose Law Group’s New Economy (Virtual) Power Lunch on Friday.

The Arizona company – which works with physicians and public health experts from Arizona State University — has also worked with Goodwill of Central and Northern Arizona on its health safety standards and training when its reopened stores.

Tempe City Manager Andrew Ching said his city is installing plexiglass panels at government offices to help curb the spread of COVID and build confidence with employees and residents.

Protective panels along with medical masks are commonplace at grocery, big-box, and retail stores as they navigate new normal from COVID-19.

Retail stores, including department and apparel chains as well locally owned shops, have been hit hard by the pandemic. They are also getting hit hard by some of the unrest and looting stemming from the police killing of George Floyd.

Retail stores in New York City, Santa Monica, Seattle, Minneapolis and Scottsdale were vandalized, and in some cases looted during the unrest.

That could have a lasting impact on retail in downtowns and urban areas. They could also be the death knell for already struggling retail chains previously hit by Amazon.com and e-commerce.

“I think it’s the ongoing nail in the coffin for retail,” said John Graham, chairman and CEO of real estate firm Sunbelt Holdings during the Rose Law Group virtual forum.

“The dark days of retail are getting darker,” Graham said.

The likes of J.C. Penney, J Crew and Neiman Marcus have filed for Chapter 11 bankruptcy. Macy’s, whose flagship store in New York was hit by looters, has reported massive losses due to the pandemic. Nordstrom is closing its store at Chandler Fashion Center permanently.

Traditional and urban retail is not the only industry seeing its evolution quickened by the upheavals of 2020.

Newspapers and magazines, already struggling to monetize their online and social media footprints, saw advertising and other revenue hit by the COVID-19 shutdowns and economic worries. Gannett, which owns USA Today, the Arizona Republic and other papers, has furloughed workers. The Tribune Company, which owns the Baltimore Sun, Chicago Tribune, and New York Daily News, have also furloughed workers, and cut pay. The likes of the New York Post, CBS News, and newer ventures such as The Athletic, Vice and Quartz have also cut jobs.

The focus on racial injustices are also putting a focus on diversity in newsrooms as well as other industries and organizations.

Early projections of a steep drop in new homes sales have not materialized, including in the Phoenix market.

“For us May became a month of extreme recovery,” said Harry Lourimore, division president of Mattamy Homes.

Lourimore said first-time home buyers and other current renters have not been dramatically deterred by the pandemic.

“We are seeing fairy healthy number of folk coming out of the rental segment,” he said during the Rose Law Group virtual forum.

Lourimore and other home building executives also note the pandemic has prompted a bigger and expected lasting focus on virtual and self-guided tours of model homes to help insure social distancing.

Graham also expects to see more workers to expect and more employers to offer work at home options after COVID.

“Just think if you can recover 10 hours a week just not driving across town,” Graham said.

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