When ascertaining the impact the coronavirus will have on investment real estate, it is critical to determine the connection between the impacts of the crisis and the type of tenancy in any particular property. Real estate has no intrinsic value, only the use of real estate has value. And this is dependent on demand. Here is what we foresee given the current situation:
• Apartments - The spike in joblessness will seriously impact occupancies. A ...
Here’s how we can all test
positive for the coronavirus:
the coronavirus demonstrates how CONNECTED we all are, regardless of country,
race, religion, gender, sexuality, social-economic status and political
affiliation. We are all connected by our
humanity, our health, biology, genetics, spirituality, shared planet, and our individual
need for compassion, empathy, love, understanding, nourishment and healing.
this reprieve from daily routines, by relaxing, bonding, healing, meditating,
communicating with the divine, contemplating, re-examining and possibly
re-charting a course.
some positives, benefits and meaning from ...
As we predicted, the coronavirus
sparked a meteoric drop in the stock market last week, including a more than
4,000-point plunge in the Dow. The question now is how much of that contagion
will spill over to impact commercial real estate?
So far, CRE capital markets have
been less reactionary than the stock market. Lenders have widened spreads to
reflect the volatility and heightened risks, but capital is still flowing. For
example, CMBS spreads have widened about 15-20 basis points at ...
A deep economic recession,
triggered by a stock market crash, looms over 2020 for 2 reasons: (1) the stock
market has not factored into pricing the impact of the Coronavirus, and (2) diminished
corporate stock buybacks during falling earnings are leaving the market
unsupported and employees vulnerable to massive layoffs.
Although stocks have thus far
resisted coronavirus concerns, commodities have not. The demand for oil has
collapsed following the outbreak, and the price is trailing. China is the world’s second largest ...
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Many corporations continue to binge on cheap debt to inflate their stock prices -- enriching their current executives and shareholders at the expense of future growth and earnings. However, when interest rates inevitably rise and/or earnings fall, stock prices will plummet and workers (i.e. consumers) will be fired so those companies can continue paying the interest to avoid default on their debt. This explains why the Fed keeps dropping the rates despite full employment ...
California lawmakers passed a statewide rent control bill to
address a worsening housing crisis in the state where millions of people are
paying more than half their monthly income in rent. The bill is meant to address rising costs in
cities like San Francisco, where rent has risen steadily for years and peaked
at 6% annual growth in 2015, according to CoStar Analytics. The bill affects an estimated 8 million
renters as it prohibits landlords from hiking rents more ...
Recession indicators which overwhelmingly signal a major economic
slowdown brought on by slower growth abroad and Trump’s escalating trade war
with China include:
The U.S. bond market and the inverted yield curve -- the yield on the benchmark 10-year Treasury note has fallen below the 2-year yield multiple times in the last month, and this inversion has preceded the last 7 recessions.
Gross domestic product in the U.S. is slowing. The economy expanded by 2% in the second ...
Online retailer Amazon has spent the past two decades luring
shoppers out of stores and onto the internet, leading a retail transformation resulting
in a wake of dead malls. Now the Seattle-based company is buying more of those
empty shopping centers, converting them into warehouses for processing
deliveries to consumer doorsteps. The
company plans to open two more Ohio warehouses, including one at the site of a
closed mall in Akron, the third shopping center in northeastern Ohio the
company has ...
Data from the National Association of Realtors suggests a
housing bubble may be on the verge or bursting in some markets, like coastal
California. Overall, U.S. home prices in the second quarter were up 4.3% vs. a
year earlier to $279,600, with 16 markets posting declines. That’s a slight
appreciation dip from averaging 5.5% annual gains in 2016-2018, a period when
just eight U.S. markets were losers. Silicon
Valley prices in California took the nation’s second-biggest loss in the
quarter: a ...