ETFs get an “A,” office flex concept gets five-city suburban push, gas woes complicate office return, Denver licenses landlords, reasons to think green in residential investing.
In Today’s News
Real Estate Is the Year’s Top-Performing Sector
While bitcoin bangs the drum loudest in raw returns, it’s actually small-tilted real estate exchange-traded funds (ETFs) that rule the risk-adjusted roost, according to this analysis posted today by WealthManagement.com.
The Millionacres takeaway: This article also serves as a nice roundup of some ETFs to consider as a way to round out a real estate investing portfolio.
Suburban Office Stalwart Launches Flex Office Brand in 5 Cities
Bisnow Atlanta reports that a nationwide owner of suburban office properties is rolling out an in-house flexible co-working operation to try to take advantage of the shifting nature of the workplace.
The Millionacres takeaway: This subsidiary of Bridge Investment Group is taking a tack -- offering flexible office space in the 'burbs -- as a way of attracting corporate tenants no longer in need of acres of downtown office space. If it works, this could be a bad sign for those center-city properties and good news for savvy investors who find their own ways to capitalize on this trend.
Today on Millionacres
Could a Gas Shortage Threaten the Return to the Office?
As if there’s not enough for corporate decision-makers to think about -- how much space is needed in a socially distanced new normal, whether vaccinations should be required, and how to even get them to come back now that they’ve worked at home, just for starters -- it turns out that there’s a shortage of fuel truck drivers that could complicate that commute.
The Millionacres takeaway: Oh, and now a ransomware attack has shut down nearly half of the gasoline pipeline on the East Coast. That’s further driving concerns of a price hike. That just adds to the headwinds facing a massive reverse flow back into office space that was filled pre-pandemic.
This Major City Will Require Rental Licenses: A Growing Trend?
The concept of getting a license isn't new to real estate, as several cities already require landlords to have a rental license for income properties. But now, Denver is imposing such a mandate, and that's actually a mixed bag for landlords.
The Millionacres takeaway: Our Maurie Backman notes that landlords already must follow certain rules and standards, so it's easy to argue that requiring them to obtain a license isn't such a big deal. But the cost of obtaining licenses could eat into revenue, she says, and that's something investors will need to prepare for if more cities opt to follow Denver's lead.
How the NAR Sustainability Report Can Help Guide Investors
The National Association of Realtors (NAR) recently released its 2021 residential sustainability report and found these three major things: 32% of Realtors say they helped buy or sell a property in the last year that had eco-friendly features, more than a third say their local MLS has fields specifically for those features, and 65% says promoting energy efficiency in listings is valuable.
The Millionacres takeaway: What goes up must come down, but maybe not temperatures. The housing market, however, is likely to cool off, and when it does, sustainability is likely to remain a consideration for buyers. Properties that speak to that sensibility are likely to sustain a lot of interest and a good price for investors in rental properties and flips.