New York and California reopen, retail sales and growing pains, cash-for-visa real estate deal may end soon, investing ahead of a housing bust, another mall REIT bankruptcy.
In Today’s News
New York and California Reopen: Let the Recovery Really Begin?
California and New York both marked the lifting of most of their coronavirus restrictions today, a milestone for two of the nation’s most populous states (first and fourth, respectively). “Remember June 15. Remember today because it is the day New York rose again,” Gov. Andrew Cuomo said.
The Millionacres takeaway: For his part, California Gov. Gavin Newsom said, "This state is not poised to recover; it's poised … to come roaring back." Now we will see how the unmasking of America and lifting of capacity restrictions will affect such critical real estate investing sectors as retail, office, and hospitality.
Retail Sales, Factory Data Show Growing Pains for U.S. Recovery
An onslaught of economic reports on Tuesday added to evidence of a U.S. recovery in full swing, yet one experiencing growing pains, Bloomberg reports [subscription required].
The Millionacres takeaway: While retail sales in May fell more than forecast, the report says that Americans may simply be shifting more of their spending to services such as travel and entertainment. All those are sectors where the pandemic hit hard, and jumps in consumer engagement are indeed welcome everywhere at this point.
Cash-for-Visa Program Looks to Be in Jeopardy
A cash-for-visa program that has raised more than $40 billion for U.S. real estate projects and other enterprises, funding major developments like New York City’s Hudson Yards, is in danger of going out of business, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: The EB-5 program provides a foreigner a green card for putting at least $900,000 into U.S. entities that create jobs. An urban slant and fraud concerns are snarling negotiations in Congress. These projects bring in new money and create spinoff investment, so this is worth watching.
Today on Millionacres
Forewarned and Forearmed: How to Invest Ahead of a Housing Bust
We recently asked some industry experts if they thought a housing bubble was forming -- like the one that burst when the global economy went bust, now more than a decade ago -- and their consensus was that it seemed unlikely. But what if there is?
The Millionacres takeaway: Just in case, we talked to three other stakeholders about how to invest if you do believe there’s a bust on the way. Well-placed, well-priced homes were on the to-do list. So were housing real estate investment trusts (REITs). Bitcoin and homebuilder stocks? Not so much.
Washington Prime Files Chapter 11: What It Means for Investors
The coronavirus pandemic has done a number on malls, and several major operators have filed for bankruptcy in its wake. CBL & Associates (NYSE: CBL) and Pennsylvania Real Estate Investment Trust (NYSE: PEI) both filed for Chapter 11 in late 2020. And now, another mall operator has joined their ranks.
The Millionacres takeaway: Our Maurie Backman writes that the good news is that as the public increasingly gets vaccinated, health-related concerns should stop being a barrier to entering malls. But, she adds, whether that's enough to make mall REITs a profitable real estate investment going forward is yet to be determined.