Why Sam Zell's paying retail; five-day office stays going away, except maybe at law firms; apartment rents on the rebound; and why you should care about SoCal warehouse emissions.
In Today's News
No Grave Dancing for Sam Zell Now. He's Paying Up for Hot Properties.
Sam Zell, who made a fortune buying distressed commercial properties, isn't finding many bargains these days. Instead, the storied real estate investor is doing something he usually avoids: following the pack and spending big on something safer, The Wall Street Journal says today [subscription required].
The Millionacres takeaway: This piece underlines the argument that it might not be worth waiting for a lot of beaten-down properties to come onto the market. That ship may never set sail, despite predictions it would. Bargain hunters in the housing market may well say the same thing.
Americans Are Done With 5 Days A Week in the Office: The Economic Impact
This Bloomberg interview with a Stanford economist takes a look at what the good professor says is the emerging "donut" effect, in which city centers are hollowing out while surrounding suburbs fill up.
The Millionacres takeaway: Think pieces like this are recommended reading to help real estate investors keep sight of the forest while investing in trees. The big picture, you know. It matters.
Law Firms Lead the Way in Dropping WFH Strategies
Law firms are among the first office-using tenants to reduce or eliminate their WFH strategies, according to a new report from Colliers cited today by GlobeSt.com.
The Millionacres takeaway: Colliers experts predict that two-thirds of all law firms will be more than 50% occupied by the end of the year, but many are also reducing their office footprint. Like so much in today's roiled, recovering office space market, the outlook is partly cloudy.
Today on Millionacres
Rents Finally Rebounding: Where They're Improving Most
We've all seen the headlines: Rent growth slowed considerably during the pandemic. And in many urban cores? They actually dropped for a time. That's changing.
The Millionacres takeaway: Our Aly Yale points out where landlords can expect to see the most growth, both in terms of geography and property type. Good to know if you're in that biz or are thinking about getting in.
New Emissions Rules Could Change Warehouses: What Investors Need to Know
While they're specifically aimed at trucks not buildings, at least for now, new emissions rules for Southern California warehouses may well be just the beginning.
The Millionacres takeaway: Our Maurie Backman puts the new SoCal rules in context. Major players like Walmart and Amazon already are on the zero-emissions bandwagon, and as more jump in, the retrofitting and construction costs to comply will rise. Now's the time to get it done, if you're directly involved, or check to see if those managing the properties you've invested in are doing it themselves.