Wall Street tech giants anchor the office space business, rental concessions gone wild, FHFA boosts loan-purchase limits, Small Business Saturday could bring gloom, amusement parks may soon again zoom.
In Today's News
Amazon, Google, and Facebook Drive Commercial Real Estate
The Wall Street Journal reports today that the biggest U.S. tech companies are providing a jolt to the slumbering commercial real estate business, emerging as major tenants and acquirers of office and other space -- while many nontech firms are trying to tear up their leases.
Why it matters: Where these massive employers set up shop, employees follow, helping drive the market there for housing, retail, and more.
Rental Concessions Go Wild as City Living Loses Luster
Rental Beast says the surging coronavirus and new lockdowns, expiring government stimulus programs, and colder weather has set off a rental concessions bonanza in U.S. markets, as property managers, owners, agents, and tenants struggle to navigate continued volatility while securing housing plans before year's end.
Why it matters: We're talking free air fryers and a year of internet in some markets -- such as Boston -- where from the property managers' perspective the situation has become desperate. Landlords and real estate investors may need to follow prospective tenants out of these cities.
FHFA Announces Conforming Loan Limits for 2021
The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae (OTCMKTS: FNMA) and Freddie Mac (OTCMKTS: FMCC) in 2021. In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, a 7% increase from $510,400 in 2020.
Why it matters: That's a big jump in one year, but it's because the limits are determined by the agency's house price index. House prices have jumped dramatically, and this move by the FHFA means more of them can be bought up by the federal guarantors that help underpin all this activity for homeowners and investors.
Today on Millionacres
How This Small Business Saturday Will Be Different
With Small Business Saturday coming up on Nov. 28, local establishments across the country are crossing their fingers and hoping for a busy shopping day. But this year, Small Business Saturday is apt to look a lot different -- unfortunately, not in a good way.
Why it matters: Millionacres' Maurie Backman says capacity limits and staffing restrictions are just two impediments facing these particularly challenged contributors to our economy during this pandemic-stifled holiday season. Small businesses are also the tenants for untold numbers of landlords who, too, depend on their income.
What's Going on With Amusement Parks Right Now?
As another wave of COVID-19 is forcing lockdowns, some states are reevaluating their rules just as people plan for winter holidays. All of this is putting tremendous pressure on companies that own these properties.
Why it matters: Millionacres' Deidre Woollard posits the positive here, noting that a vaccine-powered post-pandemic surge of business could help salvage these iconic destinations -- and the local economies that depend on them.