IKEA moves on U.S. mall market, record mortgage volume, nimbleness yields CRE opportunity, tumbling office rents, and smoke gets in their eyes.
In Today's News
IKEA Apparently Picks San Francisco Site for Its First U.S. Mall
The purchase of the property by the iconic furnishings retailer is a first, but negotiations were also reportedly underway in New York, Chicago, and Los Angeles a couple of months ago.
Why it matters: The Swedish firm's Ingka Centers operation already has 45 malls open across the world and about 50 Ikea stores around the U.S. Buying a mall that was built but never opened in San Francisco could be the start of something promising for real estate investment trusts (REITs) and other investors in commercial real estate.
Black Knight Reports Largest Quarterly Mortgage Volume Ever
More than $1 trillion in first-lien mortgages were originated in the second quarter of 2020 in the midst of a pandemic that's killing Americans by the thousands and an economy that's seeing rampant joblessness and rising delinquencies.
Why it matters: This week's report from Black Knight (NYSE: BKI) underscores the power of rock-bottom interest rates: Refinancing accounts for about 70% of the activity. Still, one must wonder if this is a bubble about to burst or the beginning of a long bull market in residential sales.
How Staying Nimble in Commercial Real Estate Has Led to New Opportunities
Mortgage bankers in Berkadia's Irvine, California, office hold forth on how low loan rates, troubled assets, and flexibility are helping them and their customers execute on good opportunities in a turbulent market.
Why it matters: This is an interesting read from the financing side as these two leaders at this Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) subsidiary say where and why they're seeing deals happen at the intersection of low rates and willing sellers who properly price.
Today on Millionacres
Office Buildings May Not Recover Until Late 2022
A buyer's market could be emerging as office vacancy rates are expected to reach 18% by the middle of 2022, according to a report from Cushman & Wakefield (NYSE: CWK), and rents are likely to drop by 10% to 15% at the same time.
Why it matters: Millionacres' Maurie Backman explores the ramifications here, including how it's good news for businesses looking to trim expenses but more trouble ahead for commercial landlords.
How to Protect Tenants From Air Pollution
As people many, many miles from the devastating West Coast wildfires can attest, what's in the air outside can get inside. Here, Millionacres' Maurie Backman shares four tips on how to protect air quality inside your rental properties.
Why it matters: Besides being the right thing to do, following these basic measures can protect property owners from liability and other issues, such as tenants breaking leases because of livability issues.