The delta variant and downtown real estate, industrial space demand draws more big bucks, a Millionacres look at "hygiene theater."
The Delta Variant and Big-City Real Estate
Delta Variant Threatens Small Businesses as It Slows Return-to-Office Plans
Thanks to the delta variant, many big employers now intend to keep staffers home after Labor Day, in a new blow to the shops, retailers, and restaurants that rely on workers in the office, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: This could be dire news here for those tens of thousands of businesses just hanging on, and for the owners of the commercial real estate they occupy -- not to mention office space owners.
Are Renters Returning to Big Cities?
The situation looked pretty dire for big-city landlords last year, but finally, it seems things are turning around -- and maybe even surpassing historical norms in some areas, our Aly Yale reports.
The Millionacres takeaway: Aly cites RentCafé data that shows rent recovery and people moving back into a number of our major cities, so maybe that can help some of that CRE that’s suffering from lack of day worker traffic.
Today in Industrial RE Demand
Equity Commonwealth Boosts Bid to Best Starwood Capital for This Industrial REIT
The bidding war between Sam Zell and Berry Sternlicht -- who are battling it out over industrial REIT (real estate investment trust) Monmouth Real Estate Investment (NYSE: MNR) -- is intensifying, our Matthew DiLallo reports today.
The Millionacres takeaway: Since this is a publicly traded stock and the battle isn’t over yet, this might be one of particular interest to individual investors who might want to take a stake of their own in this battle of titans.
KKR Sells Warehouses to Oxford in $2.2 Billion Property Deal
Canada’s Oxford Properties Group agreed to buy a portfolio of industrial properties from KKR & Co. for about $2.2 billion as online shopping continues to drive investors toward warehouses, Bloomberg reports today [subscription required].
The Millionacres takeaway: This deal is for 149 distribution properties in 12 U.S. markets and adds to the fast-growing list of transactions by private and public companies alike. The last mile for this vertical’s rally may not even be near.
Also Today on Millionacres
What is Hygiene Theater, And Should Property Owners Engage?
The term "hygiene theater" has been coined to refer to the practice of making a big show over how much cleaning is being done to make others feel safe, but with little or no actual benefit.
The Millionacres takeaway: Our Nell McPherson observes that most people want to feel that any accommodations they're staying in that have been frequented by others have been heavily cleaned and sanitized. So, when it comes to hygiene theater, she says, vacation rental investors may do well to raise the curtain and let the show go on.