Dr. Mark G. Dotzour, Real Estate Economist Presents “Economic Rollercoaster: Finding Opportunity During a Bumpy Ride” April 7th

Complimentary REDnews Webinar: Tuesday, April 7, 2020, 1 PM – 2 PM CST

Topics:
Fed Stimulus – -The Boost We Needed?
Does Printing Money Mean Inflation?
COVID-19 and Stimulus Effect On Interest Rates
Where Are Cap Rates Headed?
Will This Be Another Jobless Recovery?
COVID-19 Effect On GDP in US and Globally

Dr. Dotzour is a real estate economist who served for 18 years as Chief Economist of the Real Estate Center at Texas A&M University in College Station. He has given more than 1,600 presentations to more than 295,000 people and has written over 90 articles for magazines and journals. His research findings have appeared in the Wall Street Journal, USA Today, Money Magazine, and Business Week. Todd Phillips, CFO, RE Journals will moderate, bringing his experience with the commercial real estate to the table. Complimentary Registration.

This webinar is one of the 2020 National Series Webinars hosted by REDnews / RE Journals.

A Renaissance Man

Hundreds of Houston real estate professionals gathered at the Briar Club on March 12 for the inaugural REDnews Awards, highlighting the best and brightest of our industry. You can check out the full list of finalists and winners on page 13, but the most significant award of the night went to John Walsh. We honored him with the Lifetime Achievement Award for his decades of service to the Houston community. “I really wasn’t surprised because John has not only been successful, but it’s so well-deserved,” said longtime friend Howard Tellepsen, CEO of Tellepsen Builders. He and Walsh go back 50 years when the two attended Lamar High School together. “He’s very understated. He’s very humble. I’m just so proud that he is receiving this lifetime achievement award,” Tellepsen said. “I saw these characteristics of John in high school.” The pair graduated in 1962, going their separate ways. Walsh attended the University of Texas for undergrad, then received his MBA from the University of Houston before helping form Exxon’s real estate subsidiary, Friendswood Development. Click to read more at www.rednews.com.

You’re Not The Hero

When it comes to building and sustaining your business, storytelling is a crucial aspect of successful prospecting. But in these narratives, you are not the hero — here to save the day for clients desperately in need of your superpowers. Rather, you want to position your potential new clients in the center of their stories, while you fulfill the role of an empathetic, authoritative, understanding guide capable of helping them achieve a happy ending. First, let’s define prospecting, a term that’s thrown around often to describe various networking activities. I used to think about it literally, imagining the old prospectors from the gold rush. But prospecting, simply put, is the act of finding and winning new business. Think of it this way: If you’re good at prospecting, you’re continuously filling your pipeline with new opportunities, increasing the sustainability of your business, and, to some extent, preparing to pick up market share when competition fades. If you’re not prospecting, the inverse is true. The next recession should scare you to death. You should wake up every morning with the realization that you are leaving money on the table.

Pitching Yourself: Your client has been cast as the hero and you’re the wise person to guide them to success, but let’s back up a moment. How can you pitch this movie to a potential client? After all, it’s no use to reframe this relationship unless you can engage with prospects. The value proposition is essential in building relationships and cultivating leads. Click to read more at www.ccim.com.

Tenants ask for rent relief as pandemic shuts down business

Even when business stops, the rent goes on. But with the unprecedented restrictions caused by the coronavirus, building tenants and their landlords are scrambling to deal with the new reality. Retail and commercial building tenants who have been forced to shut down are seeking relief from rent payments that still come due even when their doors are shut. “It’s not just restaurants — there are a lot of businesses that aren’t prepared to go two months without income,” said Tom Lynn, chairman of Dallas commercial property firm NAI Robert Lynn Co. “The companies that haven’t been able to access their properties and run their businesses are calling us to see if they can get some relief.” Even a landlord willing to cut his tenants some slack faces obstacles, Lynn said. His loan agreements may preclude free rent. Plus, some leases in retail buildings can be voided if a large percentage of the tenants in the project close down or pull out. Click to read more at www.dallasnews.com.

How weak of a link is the coronavirus in the supply chain?

There is no doubt that COVID-19 is creating a significant impact throughout the world, both in the short and long term, and the disruption to the supply chain is immense. We are seeing a number of major trends along the supply chain and related industrial real estate areas resulting from the COVID-19 pandemic. First, some good news. China, which is the source of many supply chains, is starting its comeback. As of this writing, factory production in the country is anywhere from 50 to 80 percent back online with some reduced staff (based on recent ISM survey); up from a standstill leading up to the Jan 25th Chinese New Year (CNY) and weeks after. Obviously, the prolonged gap in product flow created from CNY and the outbreak of COVID-19 created a one-two punch lasting 8 to 12 weeks. In addition to reevaluating the shutdown for CNY altogether, many companies were already shifting as much sourcing as possible away from China to other countries in Asia and India, according to a very recent supply chain leader study conducted by the Supply Chain Leaders in Action. According to a survey performed by Institute of Supply Management, 62 percent of manufacturers are seeing delayed orders and 53 percent are having hard time getting information from China. Additionally, 48 percent of manufacturers are seeing slower logistics in China as well as delays at ports while 57 percent report longer lead times from China. Click to read more at www.rejournals.com.

Coronavirus response: How will real estate markets respond?

The novel coronavirus that causes COVID-19 has upended many systems around the world, from stocks to tourism to the convention industry. With this uncertainty hanging over the market, how will real estate investors respond in the short term? What might occur on the broader horizon? As quickly as the new coronavirus crossed China’s borders, the impact on the financial markets has been almost as swift. Fearing a bear market, investors directed their capital reserves to the relative safety of the bond market, resulting in the largest one-week stock market drop since the 2008 financial crisis. The Dow just had its biggest crash since 1987. A special report from Marcus & Millichap points to recent history as an indicator for how long and how far-reaching this market correction might be—as well as the implications for the CRE sector. SARS, H1N1 and other recent pandemics also generated short-term market volatility. While it’s still too early to compare the full health impacts of COVID-19 with those strains, the markets stabilized in the range of three to six months on average during past events. In isolation from this new health scare, real estate supply and demand are largely in balance. It’s fair to assume that—barring a devolution into a far worse global health emergency—job creation and economic growth will both decelerate but remain positive. This should support real estate fundamentals and lead to a relatively stable outlook for the sector over the remainder of the year. Click to read more at www.rejournals.com.