Positive flow of office returns, CRE delinquencies decline, buying real estate with crypto, a look at Invitation Homes and three other REITs.
In Today’s News
Return of Office Workers Reaches Pandemic High as Employees Trickle in
A widely anticipated surge in employees returning to the office after Labor Day never materialized. But as COVID-19 infection rates fall again, workers are trickling back to the office at the highest rate since the pandemic began, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: The reasons for the returns vary: Vaccine mandates and the beginning of a new school year are two big ones. With so many companies leaving open the option to work remotely, and many workers participating in the Great Resignation, whether office space and the retail businesses it supports recover strongly enough to again profit real estate investors remains in question.
CRE Loan Delinquencies Continue Steady Decline, but Winter Uncertainties Subdue the Celebration
Commercial real estate (CRE) loan delinquencies have been steadily dropping this year, even during the delta variant surge. Bisnow reports [subscription required] that the shrinking number of borrowers behind on commercial loan payments reflects improvements even in the hardest-hit property types, retail and hospitality, experts say.
The Millionacres takeaway: But those same experts warn that the potential for delinquencies to rise remains real in the face of a logistics-challenged holiday season and still-slow business travel. CRE delinquencies can affect all manner of real estate investments, from mortgage REITs (real estate investment trusts) to individual small-business lenders and landlords.
Today on Millionacres
Show Me the Bitcoins! Can You Invest in CRE With Crypto?
Our Kristi Waterworth takes a look at some condo and retail space sales that are taking place with cryptocurrencies as the currency of trade. Even a big mortgage company is getting into the act.
The Millionacres takeaway: The wildly fluctuating values of Bitcoin and the like make crypto an awkward fit at best with the conservative nature of CRE investing, as Kristi explains. She doesn’t see that trend gaining much traction anytime soon.
Is Invitation Homes a Buy?
Home prices are soaring, but investing in rental properties is often a laborious process, and real estate isn’t necessarily the most liquid investment out there. But there are alternatives.
The Millionacres takeaway: Our Brent Nyitray lays out why investors who want to gain exposure to this sector without buying a property should take a look at Invitation Homes (NASDAQ: INVH), which has the advantage of stock market liquidity and real estate returns. It’s not necessarily the stock for him, Brent concludes, but it could be for you.
3 REITs You Need in Your Real Estate Portfolio
Marijuana and the full reopening of college campuses go together here (but not in the way one might think), plus the power of indexing.
The Millionacres takeaway: The two REITs and the Vanguard ETF we highlight here are just three of hundreds of possibilities out there for investors who want to diversify their holdings in ways that can lower risk while providing good prospects for continued capital appreciation and a nice dividend yield.