(The Center Square) – Most people think of oil or cattle when they think of Texas. But real estate has been an undervalued frontrunner in Texas’ economy. Commercial real estate construction and investment were higher in Texas last year than in any other state, generating more than $54 billion according to the National Association of Industrial and Office Parks (NAIOP). NAIOP measures commercial real estate construction and investment, estimating how much it contributes to the economy in terms of both finances and labor. Their report shows that in 2019, investment and development of office, warehouse, industrial and retail buildings sustained 9.2 million jobs and contributed more than $1 trillion to the U.S. economy. “The U.S. economy is in nearing 11 years of expansion, growing consistently since July 2009 and making it the longest in American history,” Thomas Bisacquino, NAIOP president and CEO, said in the new report. “Despite slowing global and U.S. fiscal growth, the economy’s expansion is expected to extend beyond 2020. This is good news for our industry, as steady demand will drive new construction and development.” Click to read more at www.thecentersquare.com.

In light of these down markets, let’s say this virus launches us into a recession. A recession not caused by overblown real estate values. What do private equity/debt funds do in an environment like this? How does the strategy change? Is it a just wait it out and see? This doesn’t seem like a situation where there’s be boatloads of NPL portfolios hitting the market, maybe not as many distressed properties to buy up, but I guess I could be wrong there. What’s the play? Maybe someone who was in repe during the dotcom bubble could enlighten us on RE plays through that crash. Click to read more and comment at www.wallstreetoasis.com.

The new decade brings unique challenges and opportunities for CRE investors. The U.S. is well into the longest economic expansion in history, and the U.S. economy, financial markets, and capital markets are forging ahead into 2020. Forging ahead can mean either “moving slowly and steadily” or “moving with a sudden burst of speed.” While the former definition is applicable to current economic growth and overall CRE space market fundamentals, the employment situation, industrial sector performance and secular changes impacting the CRE market are aligning with the latter definition. Economic data, in general, show support for continuing economic growth in 2020, albeit at a modest pace. Click to read more at www.nar.realtor.

On January 1, Illinois became the 11th state, along with the District of Columbia, to legalize marijuana for adult recreational use. There’s interest across the country as well, with voters in as many as 10 states finding the question of legalized recreational marijuana on their ballots later this year. A look at tax revenues in states where legalization has occurred explains some of the interest; Washington took in $319 million in 2018, followed by $300 million in California and $266.6 million in Colorado. Overall in 2018, legal marijuana was a $1.4 billion industry in the U.S. There is “tremendous opportunity” in cannabis retail, says Wendy Berger, principal of WBS Equities, LLC, in Chicago. “This industry is exploding. We describe this often as Prohibition 2.0, and the question is: How does the real estate industry play a role in this tidal wave of demand?” Cannabis, notes Berger, “is one of the very few areas of brick-and-mortar that’s growing at a rapid pace so that alone has attracted attention. If you’re a developer and own a building with a vacant storefront or a broker and you have focused on retail, you have to ask: What’s the next growth industry?” For cannabis consumers, she says, “my feeling is that they want to do this legally. They want a safe, consistent experience; they want laboratory testing; they want a regulated product. They want to be able to go into a retail store and get educated, so the retail environment matters. These are not the head shops of our youth. These are beautiful, well-lit open spaces. They’re places where you can get comfortable with a product that maybe you’re unfamiliar with at some level.” Click to read more at www.ccim.com.