Grocers and malls, picking co-working space survivors, CMBS forbearances adding up, mortgage delinquencies show ominous move, and picking a good real estate stock.
In Today's News
And Let There Be Lettuce: Mall Mogul Eyes Grocers
Simon Property Group (NYSE: SPG) may pursue grocery stores to help light up some dark spaces in its sprawling portfolio. SPG CEO David Simon made the comment during an earnings call on Monday.
Why it matters: SPG is casting a wide net to bolster its business, including buying up bankrupt tenants, too. Real estate investment trusts (REIT) investors and other REITs will be watching to see if following the leader makes sense.
Weighing 8 Co-Working Operators' Chances of Surviving the Pandemic
This National Real Estate Investor piece shows why and how some co-working space operators might make it through after all, taking advantage of the flexibility inherent in their business model.
Why it matters: It does make sense to think that co-working spaces -- which brings strangers together in close proximity -- would become an endangered species about now. They occupy a lot of rented space nationwide, and this list shares what could be actionable insight from investors and landlords.
CMBS Loan Forbearance Tally Continues to Grow
Trepp reported today that the list continues to grow of loans held by commercial mortgage-backed securities (CMBS) that have gone into forbearance because of pandemic-induced business conditions.
Why it matters: It's not dollar amount here that's so illustrative -- about 400 loans worth about $16.6 billion -- but what they're in. About two-thirds are hotel loans and about 25% are for retail properties. Industrial, multifamily, and office building loans account for "only a smattering," the report says, another indication of how those sectors have withstood this economic battering.
Today on Millionacres
CoreLogic Reports Doubling in Delinquent Mortgages
The surge of mortgage delinquencies expected in the wake of the pandemic has apparently begun, and the numbers are stark. According to a report released today by CoreLogic (NYSE: CLGX), 7.3% of U.S. residential mortgages were in some state of delinquency -- ranging from 30 days past due to already in foreclosure -- at the end of May.
Why it matters: Foreclosure follows delinquency unless something is done. And millions of foreclosures in a short span of time is not just disruptive to the real estate market; it's a potential blow to community and national stability.
Are Real Estate Brokerage Stocks a Buy?
Millionacres' Deidre Woollard looks at the down-and-up ride of some key companies in this segment and gives her take on whether to jump in or step aside.
Why it matters: The retail economy may be in malaise, but the stock market has done pretty well of late. Finding some good issues that still have runup in them is always a good idea.