Category: Real Estate

Macy’s and Other Retailers Are Pressured to Sell the Land Beneath Them

by Randybaconin Real EstateLeave a Comment on Macy’s and Other Retailers Are Pressured to Sell the Land Beneath Them

Retailers are coming under renewed pressure to cash in on their real estate as property values soar. But the approach has a mixed track record and poses risks at a time when chains are rapidly retooling their stores to support online operations.

Macy’s Inc. is the latest to wrestle with the option. The department-store chain is facing pressure from activist investor Starboard Value LP to spin off its property, a move the fund, which hasn’t disclosed the size of its Macy’s investment, thinks could boost shares in Macy’s by more than 70%. The retailer has said it is evaluating spinoffs and other property moves.

Read entire Wall Street Journal article here.

Should Congress Trade in 1031 Exchanges?

by Randybaconin Real EstateLeave a Comment on Should Congress Trade in 1031 Exchanges?

The Real Estate Roundtable, campaigning to dissuade Congress from abolishing a stipulation under the U.S. tax code that’s critical to the real estate market, has some new ammunition in its arsenal. The organization has just come out in support of “The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate,” a new study detailing the benefits of retaining the provision and the negative consequences of eliminating it.

To read the entire article at Commercial Property Executive click here.

The Oil Impact on Commercial Real Estate

by Randybaconin Real EstateLeave a Comment on The Oil Impact on Commercial Real Estate

Perhaps more so than any other industry, oil and its pricing volatility impacts all elements of the U.S. economy, both positively and negatively. Looking at it from a macroeconomic level, higher oil prices are good for some industries, and yet bad for others—and the same goes for lower prices. So overall, how does oil and energy affect the commercial real estate profession? Well, almost in the exact same way, if you break it down.

According to recent statistics from the U.S. Energy Information Administration., U.S. oil production will grow to 9.31 million barrels daily by 2016, so the industry is still healthy production-wise. But for the past few years, prices have remained low and are expected to remain steady or even decline for the foreseeable future. Where this has the greatest impact for commercial real estate is in the retail sector. It’s a simple equation: Reduced gas prices cause a boost in discretionary income and the end result is additional spending for the country. Money that would be typically earmarked towards filling car and home gas tanks now remains in the wallets of U.S. consumers and retailers are the clear beneficiaries.

To read entire article published at National Real Estate Investor click here.

Big Ideas About Small Spaces Could Transform Housing

by Randybaconin Real EstateLeave a Comment on Big Ideas About Small Spaces Could Transform Housing

Small living space
We’re nearing the end of National Homeownership Month and from where things currently stand, the good and bad news for the housing industry is, unfortunately, the same news.

To make housing more affordable for millennials who eventually would like to form their own households, the housing industry must be more creative in the housing it creates, and local housing policies must be more flexible about the types of housing that can be built in communities, especially in desirable urban neighborhoods.

Read the entire article here.

New Legislation Could Hinder EB-5 Financing Options

by Randybaconin Real EstateLeave a Comment on New Legislation Could Hinder EB-5 Financing Options

Proposed new legislation could mean big changes for EB-5 money, a small, but growing segment of the commercial real estate financing market.

In early June, bipartisan legislation was introduced in the U.S. Senate that would both reauthorize and reform the 20-year old Immigrant Investor Program known as “EB-5” that is set to expire on Sept. 30, 2015. The EB-5 program provides visas for foreign nationals who meet criteria for investing a minimum amount of capital in the U.S. economy and create a set number of jobs.

EB-5 has seen tremendous growth in recent years. From 2010 to 2014 there has been a 504 percent increase in the use of EB-5 financing, with nearly $9 billion in capital invested in the U.S. from fiscal year 2005 to 2014.

Read the rest of the article here