Industrial is hot and getting hotter, Pennsylvania town waives at potential investors, a surprising pandemic retail success, record pace for CRE-to-residential conversions, housing affordability issues to continue.
Today on Millionacres
Brookfield Puts $1 Billion Into Logistics Real Estate: Is Industrial Getting Too Hot to Handle?
Brookfield Asset Management (NYSE: BAM) is the latest big-name investor to pour money into industrial real estate. The giant alternative asset manager is forming a strategic partnership with Elion Partners focused on logistics real estate, beginning with a major Chicago project.
The Millionacres takeaway: Our Matthew DiLallo looks at this deal and several others of similar magnitude. He concludes that all this money pouring into the sector from smart institutional investors is for good reasons -- and that the good reasons may just go on for a while.
This Pennsylvania Town Waives Back Taxes for Some Real Estate Investors
Our Laura Agadoni looks at what the struggling Rust Belt western Pennsylvania town of Monessen is doing to attract investment into empty homes, stores, and offices, and offers several more examples of the same strategies in place in other cities.
The Millionacres takeaway: Laura notes that while such offers can be tempting, go in with eyes wide open. Renovations are expensive, and there can be rules in place that discourage short-term buying and flipping.
Could This Retailer Be the Surprising Pandemic Winner?
One well-known purveyor of books has managed to beat the odds and thrive during the pandemic. And that's something real estate investors should be very happy about, our Maurie Backman explains.
The Millionacres takeaway: A personal note here: The Barnes & Noble store in my neighborhood is one of two major businesses left in what is now a largely empty mall. They do a great business. Glad to see the whole enterprise is, and here's hoping it lasts and even grows. That'd be good news for café and book lovers alike, as well as the owners of this commercial real estate.
Also in Today's News
Record Number of Commercial Spaces Converted Into Apartments This Year
Commercial space is being converted to multifamily residential space at a record pace nationwide, BisNow reports today [subscription required], citing RENTCafé research that says about 20,100 units that were previously nonresidential will have become apartments this year. That's twice as many such conversions as in 2020 and 2019 combined.
The Millionacres takeaway: The article notes that conversion costs can be 30% or more less expensive than completely new construction but that not all properties lend themselves to that strategy.
Housing Affordability Expected to Decrease in Months Ahead
Rising prices and interest rates, along with limited inventory, will continue to depress affordability and to some degree, sales growth in the U.S. housing market in the months ahead, a GlobeSt.com analysis says today.
The Millionacres takeaway: More of the same going forward, it looks like, and this piece explains why, from the perspectives of the National Association of Home Builders and Coresight Research. Some macroeconomics here for the individual investor.