10 Must Reads for the CRE Industry Today (September 12, 2018)

CoreLogic says Hurricane Florence could cause $170 billion of property damage, MarketWatch reports. Northern Las Vegas, the center of the housing bust, is booming again but the recovery has been uneven, according to The New York Times. These are the top must reads from around the commercial real estate industry today.

  1. Florence Could Mean $170 Billion of Property Damage, CoreLogic Says “As Hurricane Florence bears down on the southeastern United States, nearly 759,000 homes are in the storm’s path, and a worst-case rebuilding scenario could cost more than $170 billion, according to an estimate from real estate data provider CoreLogic.” (MarketWatch)
  2. The Epicenter of the Housing Bust Is Booming Again. (That’s a Warning Sign.) “This quiet working-class town, just beyond the glitz of the Las Vegas Strip, helped spark the global financial crisis 10 years ago. The fallout was inescapable: Nearly one in three homes went into foreclosure. Today, the community of North Las Vegas, encompassing the 89031 ZIP code, is the model of the recovery that has swept the nation. The economy is growing, companies are hiring, and the housing market is hot, with this suburban enclave spreading farther into the Mojave Desert.” (The New York Times)
  3. Investors Finally Embrace Big Single-Family Rental Companies a Decade After the Financial Crisis “A decade ago, when the U.S. housing market collapsed and millions of homes went into foreclosure, a new class of real estate investors was born. Large-scale, institutional firms began buying up tens of thousands of properties. They rehabbed them and put them up for rent.” (CNBC)
  4. Worried About the Impact of Trade Wars? Keep an Eye on the ‘Three R’s’ “When President Trump kicked off the escalating trade wars last year, many doomsayers pontificated about catastrophic consequences leading to the reversal of today’s global economic expansion, while Pollyannas brushed off negative economic consequences as short-term pain for long term gain. Between the doomsayers and the Pollyannas lies a more balanced perspective for lenders, developers and other participants in the construction industry.” (Forbes)
  5. Tax Breaks for Luxury Towers Spur Redevelopment, and Backlash “Twenty years ago, it was unimaginable that a new residential high-rise would ever adorn the modest skyline of downtown Kansas City, Mo. But in the last three years, two luxury apartment towers have opened, and a third is planned. The buildings are part of a revitalization effort in the city’s core, but some officials are questioning whether tax abatements and other incentives given to the developer, Cordish Companies of Baltimore, are appropriate for residential projects that cater to the affluent.” (The New York Times)
  6. Zara’s Upbeat Outlook Eases Concerns About Online Competition “Zara’s parent company on Wednesday said it would continue to expand online as it reported upbeat first-half results versus competitors and gave a positive outlook, helping the world’s largest fashion retailer allay investor concerns it can’t keep pace with online-only rivals.” (Wall Street Journal, subscription required)
  7. The Housing Market Is ‘In an Absolute Perfect Storm for Demand,’ Real Estate CEO Says “Millennials seem to want homes just as much as older generations — and that spells a boon for housing demand, Century 21 CEO and president Nick Bailey told CNBC on Tuesday.” (CNBC)
  8. Why Boise Real Estate Is Irresistible to West Coasters Seeking Escape “Boise, Idaho, a bustling Northwest city of 227,000 people, is increasingly becoming a favorite destination for West Coasters seeking an affordable place to put down roots. In the past decade, Boise has added 20,000 people to its population, and earlier this year, Forbes named it the fastest-growing metro area in the U.S.” (Bankrate)
  9. Ken Horn Plans Tower on Upper West Side Church Site “Ken Horn has paid $158 million for the Upper West Side development site being sold by the West End Collegiate Church.” (New York Post)
  10. Bar Association Says City Lacks Authority to Establish Commercial Rent Control “The city lacks the legal authority to establish commercial rent control, according to a report released Tuesday by the New York City Bar Association, so a pending bill to give retail tenants power over lease renewals would likely be overturned in court if it became law.” (Crain’s New York Business, subscription required)
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