Going bankrupt like it's 2008, credit unions stepping up for CRE, slowing rents in urban areas, presidential housing politics, and some free advice from CBRE.
In Today's News
Retail Bankruptcies Approach Great Recession Levels
The U.S. economy took a decade to really recover from the Great Recession and only a few weeks to really collapse. S&P Global Market Intelligence says the U.S. is on track to have the highest number of retail bankruptcies in a year since those dark days.
Why it matters: More than 40 major retailers have filed for bankruptcy so far in 2020, and a poor back-to-school buying season could add to the list. And then there are all those independent shops trying to hang on. These are all tenants for investors in commercial real estate property, and many may need help to hang on -- if it's not too late.
Credit Unions Are Making a Bigger Play for CRE Loans
This piece just posted by National Real Estate Investor looks at how credit unions have been building their piece of the pie while other capital sources have been pulling back.
Why it matters: Member-owned financial cooperatives -- that's what credit unions are -- can have more flexibility and often offer lower rates than competing banks and other financers. Its regulator -- the National Credit Union Administration (NCUA) -- has loosened some restrictions on business lending, and many cooperatives are expanding from multifamily housing into commercial small business lending.
More Tenants Eyeing Suburbs May Be Slowing Urban Rent Growth
Massive job loss caused by the coronavirus pandemic may have hit renters harder than homeowners as a whole, according to a new Zillow (NASDAQ: Z) (NASDAQ: ZG) survey, and rent growth seems to be stronger in the suburbs than downtown.Why it matters: Landlords seeking to charge what the market will bear need to know this kind of data as they maximize their earnings potential, and investors need to keep up with these trends, too, as they decide where to commit next.
Today on Millionacres
Where Do the Political Parties Stand on Housing and Real Estate?
President Donald Trump and former Vice President Joe Biden have been tweeting and touting their own visions for housing, and they couldn't be more different.
Why it matters: You can ignore politics, but they won't ignore you. Taxes and regulations are often guided to a great extent by ideologies, and there are some real differences this time around. Vote with your eyes open. Even if your own views don't jibe with every plank in your man's platform, at least you'll know.
6 Key Takeaways From CBRE's Earnings Call
What's a property worth now? How should it be configured to keep employees safe and clients happy? What segments are doing the best right now? These are some of the takeaways from CBRE's second-quarter earnings call.
Why it matters: CBRE is the 800-pound gorilla in the room when it comes to commercial real estate services. What they see and do can provide guidance to much smaller operators who don't want to monkey around when dealing with the same concerns.