Rural prices on the rise, who's paying the rent, hotel loans in the red, some recession-proof real estate investing advice, and the pandemic vs. legal precedent.
In Today's News
Homebuyer Interest in Wide Open Spaces Drives July Price Hikes
Redfin (NASDAQ: RDFN) says house prices are rising faster in the suburbs and beyond as buyers seek out larger homes in less-populated places.
Why it matters: The national listing service says its records show median sale prices for homes in rural areas are up 11.3% year over year in rural areas, 9.2% in the suburbs, and 6.7% in the cities. That's healthy growth all around but does show that bargains could soon be harder to find for investors seeking good deals where the green grass grows.
10 Retailers Who Have -- and 10 Who Haven't -- Paid Their Rent
24 Hour Fitness, Victoria's Secret, Foot Locker (NYSE: FL), and AMC Theaters (NYSE: AMC) may be very different businesses but, now they have one thing in common: They're way behind on their rent.
Why it matters: This rundown of big names in trouble gives a slideshow view of the dire straits that many iconic American businesses, and the property owners who house them, are in right now. It's interesting to see who's been keeping up, too. Check out this list from National Real Estate Investor.
CMBS Report Shows Hotel Loans at Record Delinquency Levels
A new Trepp report shows just how battered the hotel market is, at least as far as commercial mortgage backed-securities (CMBS) loans go. Among the metrics: The percentage of loans that are 30 or more days delinquent is 23.4% as of July 2020. That's the highest on record.
Why it matters: Of course, not all hotel loans are held by collateralized securities like this, but if this is an indication of what's happening more broadly, the hospitality industry is in for a long, rough ride because of the pandemic. In one market alone, Houston, two-thirds of the CMBS hotel loans are in the red, the report says.
Today on Millionacres
These Real Estate Investments Are Built to Survive a Recession
Millionacres' Liz Brumer shares some insight on several sectors and some stocks within them that offer promise for riding out rough times and growing when the going is good.
Why it matters: Finding investments that provide security and safety, especially during times of economic trouble, is an important part of creating long-term wealth.
Force Majeure and COVID-19: Precedent Versus the Pandemic
Force majeure is an old French term that has taken on new meaning for many a property manager and office tenant in the wake of the pandemic.
Why it matters: Tenants who argue they shouldn't pay their rent because events beyond their control, like COVID-19, kept them from using their space may find that force majeure won't really help them. But it can, and some say should, make its way into their next lease.