Specialized asset classes gain allure; Macy's shows some muscle; commercial real estate, inflation, and rents; Prologis poised to pounce; short-term rental demand trails supply.
In Today's News
Specialized Asset Classes Attract Growing Share of Investor Capital
Investment in specialized asset classes like lab and life science, cold storage, and medical office has risen significantly as the lack of opportunities in traditional options like industrial and multifamily has driven interest toward niche alternatives.
The Millionacres takeaway: Laboratory, cold storage (think the "last mile of food"), and single-family rentals are particularly noted as attractors of venture capital money in this GlobeSt.com article on a Colliers report.
Macy's Credits Speedy Vaccinations, Pandemic Relief for Quarter's Rebound
Macy's (NYSE: M) today signaled recovery from the pandemic, reporting a 56% year-over-year first quarter sales bump to $4.71 billion and a revised outlook that CFO Adrian Mitchell said reflects "cautious optimism."
The Millionacres takeaway: Retail Dive notes in this report that e-commerce grew 34% over 2020 and 32% over 2019. But a lot of that rebound is in-store, too, and either way, Macy's is an iconic name in retail, a pandemic survivor, and perhaps a harbinger of more retail recovery to come.
Investors Bet on Commercial Real Estate, Undeterred by Empty Offices and Hotel Rooms
The Wall Street Journal reports today [subscription required] that by most measures, the U.S. commercial real estate market is in remarkably solid shape. Prices fell far less than after the 2008 financial crisis and are already rising again. The number of foreclosures barely increased. Pension funds and private-equity firms are once again spending record sums on buildings.
The Millionacres takeaway: Here's a key point: "And with the prospect of inflation fast becoming the financial community's biggest worry, more investors in the future could turn to commercial properties with leases that include rent increases (emphasis ours) that keep pace with inflation." Below is a Millionacres look at one big player who has just that in mind.
Today on Millionacres
Prologis' 2 Can't-Miss Insights for Real Estate Investors
Given its mammoth size and global scale, Prologis (NYSE: PLD) knows the industrial real estate market better than anyone. That's why investors should listen to what its management team has to say about what they see in the sector.
The Millionacres takeaway: Our Matthew DiLallo cites this sector giant's ability to raise the rent -- and its income -- in a market the company expects to remain in a strong upward trajectory as a reason to take a good look at its stock.
Short-Term Rental Demand Surpasses 2019 Numbers -- but There's 1 Problem
According to the latest data from AirDNA, a short-term rental data firm, demand for short-term rentals is now up 66.4% over 2020's numbers as of April 2021 and 5.4% compared to 2019. The only problem? There's just not enough supply to meet it.
The Millionacres takeaway: Our Aly Yale lays out here that for investors, the high-demand, low-supply scenario presents a prime opportunity, especially as the summer heats up.