Landlords are girding for the very real prospect that the $81 billion owed to them in rent payments, according to Bloomberg, will fall far short as tenants of all kinds struggle to find the cash. … READ MORE >
Housing was set to soar. Then the coronavirus hit.
Housing starts fell 1.5% in February, to a seasonally adjusted annual rate of 1,599,000, which is less than anticipated as forecasters projected a 4.3% decline. … READ MORE >
As coronavirus spreads, pain goes beyond the hospitality and travel industries
As the human and economic toll of the coronavirus mounts, the real estate industry in North America is wondering where it can safely place its bets. The hospitality industry has taken the brunt of the hit so far, but other sectors of the economy have been nervously watching as the events unfold. … READ MORE >
The new tech economy is all about location, location, location
Economic output in the United States is increasingly revealing a geographic divide, with a greater share of gross domestic product being concentrated in the nation’s largest metropolitan areas. … READ MORE >
Betting that size matters: Macy’s closures on trend in retail
Retail closures are not always related to underperforming stores or the downsizing of operations. In many cases, a retailer closes a location because the real estate no longer suits the intended use of physical space now and in the future. … READ MORE >
Americans face housing affordability crisis as paltry inventory sends costs higher
The decline in housing numbers reported for December on Wednesday is tied to the dwindling available supply of housing for purchase. While low unemployment and modest wage growth are driving strong demand, housing inventory is lacking. … READ MORE >
Housing to start 2020 with a bang
November housing starts rose by 3.2% to a seasonally adjusted rate of 1.365 million in November, exceeding expectations. The news kept on rolling with housing permits, a leading indicator of future starts, rising to 1.482 million – the highest in 12½ years. … READ MORE >
Is the next mortgage bubble imminent? Not so fast, the debt data tells us
There’s no denying that U.S. consumer debt is high. But despite headlines about a pending mortgage crisis not unlike the one that preceded the Great Recession, data shows that the U.S. economy is not yet ready for a “back to the future” scenario, writes RSM Senior Real Estate Analyst and Partner Troy Merkel. … READ MORE >
Low treasury rate is a boost for home builders, neutral for commercial real estate
Bonds have been declining in recent weeks following a 25-basis-point rate cut from the Federal Reserve and expectations of further cuts amid rising concerns over an impending recession. Recession concerns were escalated by the inversion of the U.S. and U.K. two- and 10-year yield curves and the fall of 30-year Treasury yields to 2.07%, a record low. While this trend in the bond market will likely drive down the 30-year fixed mortgage rate and translate to more purchasing power for home buyers, it will do little to juice the market for commercial real estate. … READ MORE >
Homebuilder confidence indicators rise but still lag 2018
The homebuilder confidence index rose to 65 in July, according to the National Association of Homebuilders, as a dovish Federal Reserve is expected to reduce interest rates later this month and, potentially two more times by the end of 2019. … READ MORE >