Dropping apartment rents, LA malls can reopen, outlet center traffic, the resilience of neighborhood shopping strips, housing bubble or not?
In Today’s News
Apartment Rents Have Dropped in Nearly Half of the Top 100 Markets
Today, GlobeSt.com talks about a new report from the Apartment List that shows rents have declined in 41 of the top 100 markets in the country since the pandemic started in March.
Why it matters: San Francisco, New York, and Seattle had the sharpest drops in rental rates. The biggest gains were in Boise, Idaho; Toledo, Ohio; and Greensboro, North Carolina. See a pattern here? Demand is growing in smaller markets.
Los Angeles Shopping Malls, Nail Salons, Playgrounds Can Reopen
The Los Angeles Times reports that after months of closure, shopping centers and nail salons in Los Angeles County will be allowed to resume indoor operations. Nail salons and indoor malls will be allowed to reopen at 25% capacity, but per state guidance, mall food courts and common areas will remain closed.
Why it matters: LA is the nation’s second-largest market. Allowing businesses to resume to some semblance of normal is good news for investors and landlords, too.
Traffic Returning Faster to Outlet Centers Than Malls
This National Real Estate Investor piece notes outlet centers have not been spared the pandemic’s toll but says their open-air locations and focus on value are major advantages.
Why it matters: Headwinds remain for the sector though, and this article notes that as far as one major REIT goes, Tanger Factory Outlet Centers (NYSE: SKT), analysts aren’t impressed with its prospects.
Today on Millionacres
One Small Shopping Center Operator on the Future of Retail
A key executive from a privately held CRE firm that invests in small neighborhood strip centers says they have special strengths.
Why it matters: Millionacres’ Deidre Woollard shares the highlights from an interview on The Motley Fool's live show with Todd Laurie of Fund Services and Baceline Investments. His optimism on the future of those properties focuses on their role as host to restaurants, salons, and other services that help make a neighborhood a good place to live and invest.
3 Reasons We Might Be in a Housing Bubble, 3 Reasons We Aren’t
During a time of high unemployment and economic uncertainty, we are seeing record home prices across the country. Some experts are warning we're in another housing bubble, while others are confident we're not.
Why it matters: Millionacres’ Liz Brumer lists factors at play on both sides of the argument. Her takeaway: Making an informed decision based on need, not speculation, is likely the safest approach.