Avison Young – 2020 Expectations

EXECUTIVE SUMMARY
• Positive job growth, low unemployment and increased population contribute to Houston’s healthy economy.
• The metro’s industrial market is experiencing record construction
levels with land prices prompting “out migration” from parts of the city.
• Major retailers are expanding e-commerce operations into larger
warehouse and distribution centers due to the area’s growing consumer base.
• Following a global trend, developers are incorporating new technology into buildings as tenants seek both efficiency and amenities to recruit and retain top talent.

Innovation and technology are increasingly important economic drivers as Houston’s research community expands in the healthcare and aerospace industries. Click to read more at www.avisonyoung.com.

Bed Bath & Beyond shares jump on real estate deal that gives the retailer $250 million

Bed Bath & Beyond shares jumped nearly 5% on Monday after the retailer said it had completed a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital, netting it $250 million in proceeds. The embattled company’s new CEO, Mark Tritton, who just took the reins in November, said the deal, which entailed selling real estate and leasing it back, “marks the first step toward unlocking valuable capital … that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.” Bed Bath & Beyond said in a press release that the properties it has sold represent about 2.1 million square feet of commercial real estate, which includes stores, office space, and a distribution center. Bed Bath & Beyond, which also owns Buy Buy Baby and Harmon drugstores, has roughly 1,500 locations in total. The company said it is continuing to work with outside financial advisors to review its real estate and determine the best uses “to optimize its asset base and enhance shareholder value.” Click to read more at www.cnbc.com.

Demographic shifts in the workforce will make winners and losers of some markets

A new research report from Cushman & Wakefield, “Demographic Shifts: The World in 2030,” analyzes the effects that this generational swing, along with other demographic transformations, will have not only on the workforce of tomorrow but real estate occupiers and investors. “These demographic trends will drive the pace of growth in cities around the world,” said Dr. Dominic Brown, head of insight and analysis, Asia Pacific at Cushman & Wakefield. “Cities will need to establish themselves as ‘places’ to attract the highest quality workers and in turn create the greatest real estate opportunities for occupiers and investors alike.” Cushman & Wakefield looked at the progression of GDP and labor force in more than 130 cities around the world. Unsurprisingly, those cities with high growth in both categories are positioned to experience strong real estate demand while the prospects are low for markets exhibiting slow growth in the two categories. The report notes that Gen Z (those born in the mid- to late-1990s) came of age during the War on Terror, and with the Great Recession—the worst financial crisis since the Great Depression—occurring during their formative years. Though it is too early to know exactly what to expect as this next generation enters the workforce, they may have a lot in common with the Silent Generation, those who matured during the Great Depression and therefore exhibited more frugality and showed a greater desire for stability than the Boomers who followed. Click to read more at www.rejournals.com.

6 Ways Federal Income Taxes Will Be Different in 2020

With 2019 coming to a close, it will soon be time to start preparing to file your 2019 tax return — the one that’s due by April 2020. That return will differ from the last one you filed in several ways, though. Many key aspects of federal income taxes — from standard deductions to retirement account contribution limits — can change every year due to inflation. Additionally, some aspects of the 2017 federal tax reform law didn’t take effect until 2019. So, following is a look at some of the ways in which your 2019 tax return will differ from your prior return.

1. No individual mandate penalty

Most of the tax code changes stemming from the Tax Cuts and Jobs Act of 2017 took effect in 2018. One exception is the change to the shared responsibility payment, which took effect in 2019. The shared responsibility payment — commonly referred to as the individual mandate penalty — had applied to folks who were required to have health insurance under the Affordable Care Act but who didn’t get coverage and didn’t qualify for an exemption. Click to read more at www.moneytalknews.com.

Year-End Apartment Report: It Wasn’t Cheap To Rent In 2019

Renting an apartment in 2019? It was pretty expensive, a monthly rents for both two-bedroom and one-bedroom units rose throughout the year. ABODO recently released its 2019 annual rent report, finding that the national median monthly rent for one-bedroom apartments rose 4.1 percent last year, hitting $1,078 in December. The national median monthly rent for two-bedroom apartments rose to $1,343 in December, a 5.5 percent gain from the same month one year earlier. This jump came even though develoers brought more than 330,000 apartment units online during the year. That’s a sign that demand for apartment living remains strong. The increase in rents was consistent throughout the country, according to ABODO. The comany reported that monthly rents increased in 39 states, including the District of Columbia, and droped in just 12. Detroit ranked as the city with the biggest percentage gain in average rents for one-bedroom units last year. The city ended 2019 with an average monthly one-bedroom rent of $866, an increase of 7.48 percent. Cleveland ranked second, seeing its average monthly one-bedroom rent jump 3.85 percent to $782. Click to read more at www.rejournals.com.

Commercial/Multifamily Mortgage Debt Increased $75.7 Billion in the Third Quarter of 2019

WASHINGTON, D.C. (December 19, 2019) – The level of commercial/multifamily mortgage debt outstanding rose by $75.7 billion (2.2 percent) in the third quarter of 2019, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Total commercial/multifamily debt outstanding rose to $3.59 trillion at the end of the third quarter. Multifamily mortgage debt alone increased $40.6 billion (2.8 percent) to $1.5 trillion from the second quarter. “Strong property markets, low interest rates and low mortgage delinquencies continue to draw more capital to commercial and multifamily mortgages,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Every major capital source increased their holdings of commercial real estate debt during the third quarter, led by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA). The growth of investor-driven lenders is also evident, with mortgage REITs on pace to soon become the fifth largest source of capital for commercial and multifamily mortgages.” The four major investor groups are: banks and thrifts; federal agency and government sponsored enterprise (GSE) portfolios and mortgage-backed securities (MBS); life insurance companies; and commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO), and other asset backed securities (ABS) issues. Click to read more at www.mba.org.