Category: News & Market Reports

Eyes on Austin: Texas’ Capital City Tops National Lists for Investors

Posted on by Sarah

When the real estate investment platform CrowdStreet was weighing where to relocate its headquarters from Portland, Oregon, its leaders considered a number of factors such as cost of living, the opportunity for growth, and access to a major research university. After some exploring, the choice was clear: Austin, Texas. “We did a search to understand where a majority of the investors were based. Texas came in at No. 2,” says CrowdStreet CEO and Co-Founder Tore Steen. “When looking at all the projects in the marketplace over the past seven years, the state is number one.” Steen adds that Austin also represents a diverse and highly educated population with a quality of life that is very similar to Portland, something that was important to the CrowdStreet team. “I plan to be the first Portland-based employee to move,” Steen says. “All of our employees have been given an option to continue working with our hybrid model (either in-person or remote as it works for them) or make the move to Austin with the help of a relocation package.” Click to read more at www.rednews.com.

Who’s Next: Amazon Selects La Marque for Delivery Station

Posted on by Sarah

During a year that was a struggle for so many Texas communities, La Marque saw the light at the end of the tunnel earlier than most. “We had quite a bit of behind-the-scenes work that happened, as you can imagine before we could finally make the announcement,” says Alex Getty, Executive Director of the La Marque Economic Development Corporation. That announcement? Amazon chose La Marque as the site of a 180,000-square-foot delivery station, which will power the company’s last-mile capabilities to speed up deliveries for people in and around Galveston County. “We know location is a very important factor when sites are selected for projects like this. Since La Marque is the hub of the mainland, I think it helped Amazon ultimately choose us,” Getty says. The facility is expected to directly contribute about 400 jobs, which pay a minimum of $15 per hour — everything from drivers to primary management positions, to team leads. But projects show it will also contribute to 150 more, such as janitorial suppliers or employees in restaurants built to accommodate the expanded workforce. Another 230 construction workers are needed just to get the building off the ground. “We are excited to continue to invest in Texas with a new delivery station in La Marque that will create hundreds of new job opportunities and provide faster and more efficient delivery for customers,” said Daniel Martin, a spokesman for Amazon. “We look forward to continuing our growth in Texas and want to thank local and state leaders for their support in making this project possible.” Click to read more at www.rednews.com.

Ramsey March: The Struggle Between The Leaders And Followers of Industry “Herds”

Posted on by Sarah

Herd instinct is the inclination of people or animals to behave or think like the majority in the interest of self-preservation. Herd mentality is hard-wired into human behavior and requires great discipline and conviction to override—if it should be overridden at all. It has also long been embedded into corporate and capital markets behavior. In the year ahead, we may witness the most interesting struggle between the leaders and followers of industry “herds” in memory. Alphabet, the parent company of Google, possesses a market cap of $1.35 trillion and employs 135,000 people across 70 offices globally. Even if it did not also happen to control how information flows on the internet, the company’s standing as one of the world’s most influential real estate occupiers is undeniable. So when Alphabet CEO Sundar Pichai had this to say recently as he announced Google’s $7 billion commitment to expanding its real estate footprint in multiple states this year, it captured our attention: “Coming together in-person to collaborate and build community is core to Google’s culture.” Click to read more at www.dmagazine.com.

Top REITs for May 2021

Posted on by Sarah

Real estate investment trusts (REITs) are publicly traded companies that allow individual investors to buy shares in real estate portfolios that receive income from a variety of properties. They allow investors to easily invest in the real estate sector, which includes companies that own, develop, and manage residential, commercial, and industrial properties. Among other requirements, REITs are required to pay out at least 90% of their taxable income as dividends. A key REIT metric is funds from operations (FFO), a measure of earnings particular to the industry. Some big names within the sector include American Tower Corp. (AMT), Crown Castle International Corp. (CCI), and Prologis Inc. (PLD). Many commercial real estate companies that own office buildings and retail space have been badly hurt by the COVID-19 pandemic and economic downturn, both due to layoffs and many corporate employees working from home. However, the U.S. government’s $1.9 trillion stimulus package, passed by Congress in March 2021 could fuel a rapid economic recovery, and along with it, a rebound in commercial real estate. REITs, as represented by the Real Estate Select Sector SPDR ETF (XLRE), have significantly underperformed the broader market. XLRE’s 69.2% total return over the past 12 months is well below the general market benchmark iShares Russell 1000 ETF (IWB), which has provided a total return of 132.4%, as of April 20.2 All statistics in the tables below are also as of April 20. Here are the top 3 REITs with the best value, the fastest growth, and the most momentum. Click to read more at www.investopedia.com.

Understanding Covid-19 Multifamily Trends: What’s Temporary And What’s Here To Stay?

Posted on by Sarah

The Covid-19 pandemic took the economy on a wild ride in 2020, and this is projected to persist well into 2021 as the gradual rollout of vaccinations continues across the U.S. The real estate market was also impacted with many operators having to adjust their business plans to fit a new reality. After a months-long slowdown in investment and development activity, real estate picked up in the latter half of the year, albeit with much of the deal-making and diligence being done remotely. Unsurprisingly, transaction activity has varied between different asset classes, as some (e.g., retail, hotel and office) have been more deeply impacted by the pandemic than others. For its part, the multifamily industry overall has continued to perform, and we’ve seen relatively little disruption in pricing or asset values on the whole based on the trades that are occurring. However, certain market and demographic themes have emerged during the pandemic that are influencing which assets are trading and where. In examining these trends, it appears that some are specific to the pandemic and are likely to revert once it’s passed, while others were emerging prior to the onset of Covid-19, which then only served to accelerate the changes. Here are some of the trends I believe will be temporary and others that are more permanent. Click to read more at www.forbes.com.

Downtown Resiliency Plan Takes Aim at Central Austin Storefronts, Public Spaces, Homelessness Strategy

Posted on by Sarah

Following a year that saw sharp drops in consumer and resident activity throughout downtown Austin, the city’s central economic and cultural district is poised for recovery on several fronts heading into the latter half of 2021 and beyond, according to new analyses from the Downtown Austin Alliance. “The much-anticipated light at the end of the tunnel is burning brightly for Austin and downtown because of the adaptability we have witnessed from business owners, the hospitality industry and signs pointing to a record-setting 2021 for the development of Class A office space in downtown,” DAA President and CEO Dewitt Peart said during an April 21 videoconference. The DAA’s outlook for sustained growth projected in its 2021 annual report comes after a year that saw business and entertainment venue patronage, tourism, and in-person office work and occupancy plummet throughout the approximately 1,100-acre Austin downtown, according to DAA Director of Research and Analysis Jenell Moffett. “Not only is it the central business district, it’s where you hear live music; it’s where you attend your favorite concert or show; it’s where you eat at your favorite restaurant … and the list goes on and on,” she said. “Downtown is truly a place for everyone, and COVID-19 tried to change that.” One of the most visible examples of the pandemic’s effect on the downtown economy is the dozens of spaces that permanently closed their doors through 2020 and early 2021. Moffett said declining activity from residents, commuters and tourists alike contributed to the closures of 10 music and event venues and 88 storefronts tracked by the alliance downtown since last March. Click to read more at www.communityimpact.com.