Election unrest makes some cities' CRE projects uninsurable, no-go on California rent control repeal, Pennsylvania adds LIHTC, a K-shaped recovery, and REIT bankruptcies that make shareholders go bust.
In Today's News
CRE Projects May Struggle for Insurance Until Election Is Settled
GlobeSt.com reports that several of the nation's largest commercial property insurers have put moratoriums on new insurance policies and renewals due to potential election-related "civil unrest," especially in some notable big markets.
Why it matters: It's nothing new to not write new policies when, say, a hurricane is approaching, but because of elections? By the way, there's a potential hurricane on the way, too. Google "tropical storm Eta."
California Rent Control Relief Narrowly Fails, Property Tax Hike Uncertain
Bisnow reports that California voters appear to have rejected Proposition 21, the second attempt in three years to relax statewide restrictions on rent control, while Proposition 15, which would raise property taxes on thousands of commercial properties in the state, remains too close to call.
Why it matters: Golden State voters made clear their preference at the top of the ballot, but the results for these two measures will go a long way, too, toward defining the new normal for property owners and managers in a state economy that's bigger than most nations'.
Pennsylvania Governor Signs Bill to Create State LIHTC
Gov. Tom Wolf did something else on election day. He signed into law a bill that establishes a low-income housing tax credit in the Keystone State that mirrors the existing federal incentive.
Why it matters: Taxable gains deferrable programs aimed at redeveloping struggling areas are popular on both sides of the aisle, it seems. This piece from the Novogradac consultancy adds that five states have bills pending that would create their own state-level LIHTCs.
Today on Millionacres
What Would a K-Shaped Recovery Mean for the Real Estate Market?
Millionacres' Deidre Woollard looks at the ramifications of an economic recovery where the tide only lifts some of the boats.
Why it matters: Whether it's a V, U, or K is not just semantics. The kind of bounce back we see once the pandemic is past will go far to determine the economic fortunes, at least in the near term, of most Americans, including real estate investors.
CBL and PREIT File Chapter 11: What's Next for These Mall Operators?
Millionacres' Matt Frankel lays out how these two real estate investment trusts (REITs) are now selling for pennies on the dollar, and could soon be worth less than that.
Why it matters: Matt not only points out why CBL (NYSE: CBL) and PREIT (NYSE: PEI) shareholders are stuck with the short end of the creditors' stick, he shares some insight on what to look for in REITs in the same business but with very different portfolios and balance sheets. That makes all the difference.