5 at 5: Your Daily Digest for Real Estate Investing, 1/14/21

Unemployment rising again, national affordable housing initiative, opportunities in reverse logistics and New York, New York.

In today’s news

Big step in the wrong direction: Unemployment claims rise

The Department of Labor reported today that an additional 965,000 Americans filed for unemployment benefits for the first time last week, most in several months as the pandemic worsened.

Why it matters: With President-elect Joe Biden inaugurated in less than a week, according to CNN, Thursday’s report hammers home again that the new administration’s first priority must be more incentives. Indeed, real estate investments of all kinds, perhaps the entire economy, depend on the results.

Company announces $ 3.5 billion initiative to tackle housing inequalities

The National Affordable Housing Nonprofit says their Equitable Path Forward initiative includes a mix of loans, grants, and tax incentives that leverage the New Markets and Opportunity Zones tax credit.

Why it matters: Corporations are just one of several organizations – some private, some public, some quasi – that are involved in this type of lending and development. It will be interesting to see where, under a new administration, investment opportunities arise that have different priorities than outgoing policymakers.

Reverse logistics facilities are becoming more and more attractive as an investment option

What is good for the goose can be bad for the viewer, as increasing numbers of product returns can be costly for e-commerce vendors, but it only increases the need for logistics warehouses to handle the return flow.

Why It Matters: This report from WealthManagement.com sums up well what experts from some major commercial real estate agents and other stakeholders see as a real opportunity for this type of industrial property.

Manhattan Bargain Hunters Achieve 94% Leases Up

Bloomberg [subscription required] It was reported today that Manhattan apartment leases nearly doubled in the past month. This is a sign that falling rents and freebies for landlords are attracting tenants to New York’s most expensive neighborhood.

Why It Matters: People moving back to the big city seem to be going against the tide, but this is one way to make it happen. And some rents are better than none.

Today on Millionacres

New York Government Plans To Convert Empty CRE Into Residential Properties: Should Investors Cheer Or Whine?

Governor Andrew Cuomo this week proposed law that would open a five-year window for converting Manhattan office buildings and hotels into residential buildings.

Why It Matters: Hotel and property trading groups are on board, and backers say this could lead to encouraging work-live-play developments, especially in the 24/7 space in the heart of the Big Apple. A development to be observed. If they can do it there, I suppose they can do it anywhere.