Thinking about store closures and retail real estate, housing prices seen staying on the rise, headlines from the industrial sector, co-working in the 'burbs.
Today on Millionacres
How to Think About Store Closures and Retail Real Estate Now
The pandemic-fueled epic wave of store failures may be fading into memory, but the slow drip of brick-and-mortar closings began before COVID-19, and the struggles can be expected to continue.
The Millionacres takeaway: Our Maurie Backman explains why that is, and which kinds of physical retail might be in more trouble than others.
This Analyst Says Housing Prices Could Rise Another 16% Before the End of 2022
If you think houses are expensive now, brace yourself. Goldman Sachs Research predicts home prices will go up another 16% by the end of next year. And that comes after home prices have already risen 20% from last year.
The Millionacres takeaway: The situation doesn't look good for homebuyers for the foreseeable future. But national trends can be deceiving, as local markets are what really dictate whether an investment in real estate makes sense, says our Laura Agadoni, an experienced Atlanta Realtor herself.
In Industrial Real Estate News
They're Not Horsing Around: Equus Places Billion-Dollar Bet on Phoenix Industrial
Equus Capital Partners has just paid $1.15 billion for an industrial portfolio comprising 7.3 million square feet in 342 buildings across 74 business parks in and around Phoenix and Tucson, Arizona.
The Millionacres takeaway: The Equus purchase is a diverse lot that speaks to the breadth and durability of the industrial real estate business. All that space is 98% leased to tenants in 22 different industries, including e-commerce, logistics, manufacturing, and both business-to-business and business-to-consumer providers.
Complaint by Carson Residents Against Prologis Highlights Growing Pains for Industrial Developers
A lawsuit filed against Prologis (NYSE: PLD) this month by residents in Carson, California, highlights headwinds for the industrial sector as it faces growing pains, specifically in residential neighborhoods, Bisnow Southern California reports [subscription required].
The Millionacres takeaway: It's no secret that industrial space is a white-hot segment now -- and Prologis is the biggest of industrial real estate investment trusts (REITs). This development is a reminder that there can be problems on the ground that can impact an individual project and its backers.
Also in Today's News
Why Co-Working Spaces Are Betting on the Suburbs
Start-ups are betting that the pandemic has spawned a new kind of worker who wants an office space closer to home, without the long commute, The New York Times reports [subscription required].
The Millionacres takeaway: Real estate investors alert to opportunities in their markets can capitalize on this trend for a lot less cash than, say, building a warehouse.