1 Unique Real Estate Stock With Tremendous Long-Term Potential

It’s tough to describe what Howard Hughes (NYSE:HHC) does in a sentence or two, as it is one of the most unique and long-term focused real estate companies in the market. But in this Fool Live video clip, recorded on June 14, Fool.com contributor Matt Frankel, CFP, along with colleague Toby Bordelon, explain why this interesting business could be worth adding to your watch list.

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Darden Restaurants CEO Says Speculation is Pushing Real Estate Prices Up

Customers will arrive at the Olive Garden location at Darden Restaurant in San Antonio, Texas, USA on Thursday, June 14, 2018.

Despite the number of permanent closures of the restaurant by the pandemic, Darden Restaurant is currently not seeing many real estate deals.

“There is speculation that the real estate market will push prices up,” CEO Jean Lee told analysts at the company’s quarterly earnings briefing Thursday.

Lee didn’t elaborate on what speculation meant for Darden. However, the restaurant chain that survived the recession was hoping to receive more accommodation from the landlord, such as getting a closed place at a discounted price or getting permission to build a drive-through lane.

Industry tracker Black Box Intelligence estimates that 12% of US full-service restaurants that were open before the pandemic were closed.

Private equity funds and other investors stormed and bet on commercial real estate. The Wall Street Journal reported in May that commercial real estate prices have risen since July, clearing almost half of the pandemic’s decline. Click to read more at www.texasnewstoday.com.

Are Consumers Ready to Return to Physical Stores? That Depends on What They’re Buying

As COVID-19 restrictions have been lifted across the United States, will consumers return to in-person shopping? The answer might depend on what kind of shopping consumers are doing.

Lucidworks, a San Francisco-based provider of software and cloud technology, recently surveyed 800 consumers in the United States and U.K. about their shopping behavior. The survey results indicate that the pandemic might have given online shopping yet another boost.

According to the survey, a third of U.S. respondents said that they plan to avoid in-person shopping as much as possible, even as pandemic-related restrictions are lifted. An additional 31 percent of U.S. respondents said that they plan to visit in-person stores less often than they did before COVID-19.

There are certain types of shopping, though, that consumers are more likely to do in-person. Lucidworks said that while 65 percent of shoppers across the United States and U.K. currently buy at least some of their groceries online to have them delivered, 63 percent said that they plan to primarily buy their groceries in person as restrictions lift.

Compare that, though, to the electronics category. Lucidworks found that more than one-half of respondents said they currently order electronics online, and only 35 percent plan to purchase electronics primarily in-person as COVID restrictions are dropped.

But how can retailers best convince shoppers to make a purchase, whether these consumers are buying online or in-person? According to the survey, product recommendations — positive reviews posted on a company’s website or on sites such as Amazon or Walmart — are key.

Lucidworks’ survey says that 85 percent of U.S. shoppers interact with product recommendations always or often. Even more impressive, two-thirds of U.S. respondents said that either every visit to an e-commerce site or often they buy recommended items that they didn’t initially plan to purchase.

A total of 68 percent of U.S. shoppers said they prefer to do research on products by reading reviews on a company’s website. Almost half of all U.S. shoppers said they research by reading reviews at third-party marketplaces like Amazon, Google Shopping and eBay.

And what about safety measures? Do consumers want COVID-era protocols to remain in place as the pandemic eases?

Again, that depends. According to the Lucidworks survey, most shoppers in the United States and U.K. want stores to operate largely as they did before the pandemic hit. But they also want retailers to retain some COVID safety measures, including physically distanced lines and contactless payments.

“The shopper inhabits multiple personas,” said Peter Curran, general manager of digital commerce for Lucidworks, in a written statement. “To create a great customer experience, you have to understand the consumer’s goal in the moment. The ability to harness first-party data and in-session inferences are the keys to delivering a great experience. Brands must connect the dots between all of the actions a shopper takes to understand their goal and deliver the most relevant experience from research, to purchase, to support and back.”

NAI Partners Introduces Partners Real Estate Company

NAI Partners today announced the public introduction of Partners Real Estate Company (www.partnersrec.com), the organization that serves as the holding company for three entities: NAI Partners, a commercial real estate firm that offers Brokerage, Property Management, Appraisal, and Project Services; Partners Capital, a real estate investment fund platform; and Partners Development, an in-house development company delivering ground-up, build-to-suit, and development investment projects.

“Our external news and announcements that feature NAI Partners’ service lines will continue to be communicated in that fashion,” said Jon Silberman, Managing Partner of Partners Real Estate Company and NAI Partners. “The introduction of Partners Real Estate Company reflects the evolution of our organizational structure and better aligns with our growth strategies and branding initiatives.”

As the organization’s brokerage transactions will still be under the NAI Partners banner, audiences will begin to see messaging examples like the below implemented across the company’s communications.

Mineral and Royalty Interests – The Perfect Complement to a Traditional Real Estate Portfolio

When many real estate investors hear the terms oil and gas mineral and royalty interests, they might cringe and possibly even run the other way. The unusual thing is the asset profile is very similar to that of a commercial real estate portfolio, yet delivered in a way that tends to be uncorrelated with traditional real estate yields and valuations. This is why an often misunderstood product set can be a perfect diversification tool to a traditional real estate portfolio.

Mineral Interests and corresponding royalties are considered subsurface real estate and are eligible as replacement real property for 1031 exchanges. The mineral royalty owner (MRO) owns a tract or fraction thereof from the surface of the earth downward. A portion of commodities extracted from the land by an operating lessor (OpCo) is paid to the owner in the form of a royalty. This is similar to a landlord/tenant relationship in a busy shopping center where the landlord negotiates for a portion of the gross sales earned by the tenant.

MROs receive royalties in units of actual commodities, such as barrels of oil as an example, which are then marketed for them by the OpCo as opposed to a portion of revenue from the OpCo. The royalty units are considered property of the MRO once the commodity reaches the earth’s surface at the wellhead. This mitigates the MRO’s counterparty credit risk exposure to the OpCo and generally makes the mineral royalty investment bankruptcy remote to the OpCo. Click to read more at www.rednews.com.

Tech Adoption Is Key To Organizational Resilience For Property Management Teams

For an industry that relied heavily on in-person interactions, the property management world had to adapt quickly to remote pandemic realities over the past year. The shift to remote work, virtual leasing and the types of communications needed to relay messages to residents all created an urgency in the property management world to find technology solutions that would best help them navigate business disruption caused by the pandemic.

However, the acceleration of tech adoption in property management is not something that starts and stops with a remote reality. Technology was gaining traction before the pandemic, and the acceleration of tech adoption is going to continue to rise, even when our environment starts to feel a little more “back to normal.”

Mineral royalty interests do not possess any liabilities which are present in traditional real estate. These are assumed by the OpCo including environmental, mechanical, and maintenance. Ultimately, if a well is drilled and there is a cost overrun, it is completely irrelevant to the mineral holder and 100% the operator’s responsibility. Click to read more at www.forbes.com.