Bitcoin gets battered; SoCal warehouse emissions law emerges as CRE issue; house price bubble? No bubble here; housing starts take a spring dip; a 1Q20 look at mall REITs.
In Today’s News
Bitcoin Falls as Much as 30% as Investors Sour on Cryptocurrencies
The rapid drop led to billions of dollars of bullish bets being wiped out on offshore cryptocurrency derivatives exchanges -- a sign that investors playing with high degrees of leverage may have helped the crypto market up in the first place, The Wall Street Journal said today [subscription required].
The Millionacres takeaway: Conventional wisdom has been growing around cryptocurrency becoming more mainstream, including examples of landlords and other real estate businesses taking bitcoin for payment. Is that wise?
Southern California Warehouse Emissions Law May Be New Challenge for CRE
Under this new rule, GlobeSt.com says, warehouse operators seem to become responsible, at least in part, for the types of trucks that appear at their facilities.
The Millionacres takeaway: The rule only covers parts of four counties in Southern California, but they include some of the largest concentrations of warehouses in the country, and it could be a sign of more such regulations to come on this particularly hot segment of the commercial real estate industry.
Today on Millionacres
What Goes Up Must Come Down -- Or Must It?
Soaring housing prices understandably sparks talk about a possible rapid retreat. The Great Recession, after all, wasn’t that long ago. Is there a bubble forming now?
The Millionacres takeaway: Four industry experts told Millionacres that the underlying factors that drove the housing collapse that bottomed out a decade ago no longer exist. Proceed, but with caution.
Housing Starts Take a Spring Dip: What’s the Skinny for Investors?
The housing starts report out this week indicates that new home construction starts fell sharply in April, showing that building material and labor woes are beginning to drag that market.
The Millionacres takeaway: Real estate investors factoring in a growing supply of new homes to ease supply woes may want to reconsider that part of their thinking. And price pressure won't likely be easing, either, at least not from this segment.
Mall REITs: 2020 is Over -- Now for the Hard Work
Coronavirus vaccines and reduced economic and social restrictions suggest that 2021 will end up a much better year for this major property niche. However, "better" is a relative term. Indeed, here's why the hard work is just beginning for mall REITs (real estate investment trusts).
The Millionacres takeaway: Our Reuben Gregg Brewer explains that while the first quarter brought a material amount of good news for mall REITs -- most notably the fact that customers are coming back -- there are still very big issues out there, and it will take some time for the sector to really recover.