5 at 5: Your Daily Digest for Real Estate Investing, 3/12/21
Working from home emphasizes office values, Florida sees people come and go, Mrs. O’Leary’s cow reappears (at least on this house list), Flipper warns of foreclosures, and the Restaurant Revitalization Fund is here.
In today’s news
Stress tests show that the WFH trend could cut Office values in half
GlobeSt.com reports that post-pandemic work-from-home trends can result in a permanent decline in demand for space and can have a significant impact on property values.
The Millionacres Takeaway: This rating was conducted by Fitch Ratings based on eight-year transactions – from 2012 to 2020 – in commercial mortgage-backed securities (CBMS). If employees are actually staying home in droves permanently, the owners of all of this empty office space will really feel the stress.
Ain’t no sunshine when they’re gone Florida sees significant runoff
The Wall Street Journal reports on it [subscription required] – Despite the hype – thanks to hurricanes, heat and blistering property prices, the Sunshine State’s population growth reached its lowest level since 2014 during the pandemic
The Millionacres Takeaway: Many high dollar homes still sell like hot cakes in Florida, but it’s clearly not for everyone. A resident’s comment in this article about watching the storm tracks for weeks hits this South Caroliner too, but I live far inland. On or near the coast? Definitely stressful.
A mansion sale based on the notorious cow myth
A Chicago real estate agent says the son of the woman, whose cow is sometimes blamed for starting the Great Chicago Fire, built her an Englewood mansion, which is now listed for $ 535,770. The New York Times says [subscription required] Historians are skeptical
The Millionacres Take Away: Fun Read Here. We can say “fun” since we weren’t there in 1871 when the fire ravaged 2,000 acres of the cityscape. The lesson is to be careful with claims about a home’s historical past – especially if those claims increase the price relative to the property’s surroundings.
Today on Millionacres
Foreclosures jump 16% in February. A sign of more to come?
Foreclosures rose 16% between January and February and are trending up in 29 states, according to a new report from ATTOM Data Solutions.
The Millionacres Takeout: If you’re a house flipper or a rental investor, this seems like a ray of hope – especially if distressed real estate is your typical port of call. But is it actually a reason to be optimistic? Our Aly Yale offers answers and strategies here.
Massive Stimulus Bill Provides $ 25 Billion in Restaurant Aid
The US bailout plan – all $ 1.9 trillion – signed by President Joe Biden this week sees $ 25 billion in direct aid to America’s food and drink facilities in the form of grants from the Restaurant Revitalization Fund in front.
The Millionacres Takeaway: While this is just a small slice of the pie – even more is being used for housing benefits, for example – if the restaurant recovery is dramatic enough, many CRE investors may not only eat better, but sleep better too . also.