5 at 5: Your Daily Digest for Real Estate Investing, 3/4/21
The city is rising again (at least property prices), the REIT mall near Chapter 11, Disney is closing 60 stores, Smart Windows are going SPAC, and commercial real estate is going into the pot.
In today’s news
Redfin: Price growth in cities is outpacing that in suburbs and rural areas
For the first time since the pandemic broke out, four-week growth in property prices within city limits in urban areas has surpassed that of suburbs and rural areas, the online real estate service said today.
The Millionacres snack bar: what goes “round” ends up going round. Whether this is a reverse of the “head for the hills” mantra that has dominated residential real estate history for months remains to be seen, of course.
Mall REIT Washington Prime is said to be on the verge of bankruptcy
U.S. shopping mall owner Washington Prime Group (NYSE: WPG) prepares to potentially file for Chapter 11 bankruptcy protection as the operator of about 100 shopping malls across the country is on the verge of defaulting its debt, reported CNBC today.
The Millionacres Takeaway: Today’s news follows troubled Real Estate Investment Trust (REIT), which was missing an interest payment of $ 23 million last month, and is another indicator on the long trail of bad news Owners and harass investors in the country’s shopping malls.
Disney closes 60 stores in the US and Canada
The entertainment and theme park giant plans to close about 35% of its locations in the US and Canada, CNN reported today.
The Millionacres Takeaway: Et tu, Mickey? The closings of small stores that have been the mainstay of malls for years has been a constant during the pandemic recession, but it’s still especially poignant to see Disney (NYSE: DIS) take such a powder.
Today on Millionacres
Smart glass company is listed on the stock exchange via SPAC
View and its smart window technology will be listed on the stock exchange through a Special Purpose Acquisition Company (SPAC). Real estate operators of various types are already using these windows to optimize natural light and control heat and glare. Each window has its own relationship with the Internet of Things (IoT).
The Millionacres Takeout: Our Jeff Piltch explains that while the broader SPAC trend may be the figurehead of the speculative mania we see in the market today, technology solutions that provide landlords with energy efficiency and ROI impact are sure to become tomorrow and moreover be here.
3 Ways Legal Marijuana Could Affect CRE Markets
The rise of legalized marijuana for both recreational and medicinal use continues to create opportunities for the Commercial Real Estate (CRE) market and its investors.
The take away from Millionacres: New tenants for retail and warehouse space are just around the corner, but there are also hurdles for banks and zones that can stand in the way of an easy way forward.