Post-Covid Retail and Industrial Opportunities and Challenges

Mall sales are down 28% year to date, and that's after a recent rally.  Though the need for well-executed experiential retail in excellent locations remains, there's a lot of uncertainty about how and when consumers will be able to revisit their favorite restaurants and shopping centers.  From an underwriting perspective, buyers need to assume much higher vacancies, lower rents, and significant repurposing capital expenditures in even the best retail environments.  Fearful enders have retreated ... Read more

Top 15 Reasons to Invest in San Diego Real Estate

Top 15 Reasons to Invest in San Diego Real Estate Most diverse high-tech sector in the nation” - Milken Institute“Best place in America to launch a startup” - Forbes Magazine“Most attractive metro in U.S. for relocation” – APA Survey“Top U.S. travel destination” – Money MagazineRanked 2nd “safest city” in the U.S. with populations over 500,000266 days of sunshine with an average temperature of 70 degreesOver 70 miles of beautiful southern California coastlineSix major universities, including ... Read more

As Homeownership Declines, Demand for Rental Housing Will Climb for Next 5 Years

A drop in homeownership rates will fuel a significant increase in demand for rental housing over the next five years, according to a study released by apartment properties acquisition and management company Middleburg Communities.The June 11 report projects a decline in U.S. homeownership to 62.1%, the lowest rate in more than 20 years, before a partial recovery to 63.6% in 2025. Depending on the effects of the recession, the demand for rental housing will ... Read more

Post-Pandemic Commercial Real Estate Investing

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 ... Read more

Testing Positive for the Coronavirus

Here’s how we can all test positive for the coronavirus: Recognize 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. Welcome this reprieve from daily routines, by relaxing, bonding, healing, meditating, communicating with the divine, contemplating, re-examining and possibly re-charting a course. Find some positives, benefits and meaning from ... Read more

Coronavirus Impacts in the CRE Market

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 ... Read more

Side Effect of Coronavirus: The Great Stock Market Crash and Recession of 2020

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 ... Read more

Best Financing Available Anywhere

Fantastic Financing by Regal Properties! JUST FUNDED -- Neighborhood Shopping Center Loan in Visalia, CA! $5,730,000 Loan 3.85% Fixed for 10 years Interest-only for 10 years 30-year amortization Non-recourse! Read more

Overleveraged — Corporations vs Commercial Real Estate

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 ... Read more

What Does California’s New Rent Control Mean?

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 ... Read more
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