Biden’s Plan Could Offer Retail Relief

The number one priority for the Biden administration is clear. It’s moving a COVID recovery package forward.

“There is no question what the number one priority is for the Biden administration, and that’s COVID,” says Jake Fingert, general partner, Camber Creek and a former member of the National Economic Council during the Obama administration. “That is abundantly clear.”

Fingert thinks COVID legislation could offer a lot of relief to the hard-hit retail sector. “There are a few things that we’re expecting to see either in this initial package or a follow-up package that will have an impact on retail,” he says.

For starters, the package will include another stimulus check. “There should be a check that goes into people’s pockets,” Fingert says. “That in and of itself will have an impact on retail. If people have more money, then they’ll go and they’ll spend. Some people will use that money to buy groceries, but other people will use that money to buy new clothes or buy other things.”

Widespread vaccinations could have a compounding effect. “People are going to be eager to get out of the house, and at the same time, they’re getting a substantial check from the government,” Fingert says. “So those two things combined will have a positive impact on the retail sector.”

Also, there may be packages for small businesses that could boost retailers. “That [small business] has been a clear focus of the Biden administration,” Fingert says. “They seem to be very committed to supporting our small businesses throughout the country.”

But there are questions about how a small business plan will look. For instance, it could provide additional loans. With an injection of more capital, retailers should be able to help small businesses pay rent and keep them in business.

“Regardless of where it lands, my expectation is that they will do something, and there will be a meaningful push to support small businesses,” Fingert says. “That should have a positive impact on retail.”

Fingert is also tracking how the new administration will support urban areas and inner-city communities.

“There has been a lot of discussion around things like innovation clusters,” Fingert says.

During the Obama administration, the Smart Cities Initiative was created to help put money and technology into cities, whether through infrastructure like Wi-Fi, electric vehicles or transit.

“There are a lot of things that these innovation clusters can do to help promote a more tech-forward real estate industry,” Fingert says. “That is another piece that we’re watching closely.”

Fingert expects that it will be months before the Biden administration lays out a concrete plan about how dollars will be spent and what the goals will be. When that happens, “folks can start to actually operationalize their business and adjust their business accordingly,” according to Fingert.