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10 Must Reads for the CRE Industry Today (September 17, 2018)

The real estate sector is awaiting the true impact from Hurricane Florence, according to Seeking Alpha. Wells Fargo’s CFO said he expects commercial real estate and commercial and industrial loans to drop from second-quarter levels, the Wall Street Journal reports. These are among today’s top must reads from around the commercial real estate industry.

  1. Real Estate Sector Awaits Impact From Hurricane Florence “The S&P 500 (SPY) climbed 1% on a busy week of economic data and hurricane-related disruptions. Real estate equities were mixed on the week as the housing-related sectors await the impact of Hurricane Florence on the Southeastern US.” (Seeking Alpha)
  2. Wells Fargo’s Problems Spread to Business Lending “Chief Financial Officer John Shrewsberry said at a conference on Friday that he expects two key classes of business loans, commercial real estate and commercial and industrial loans, to fall from second-quarter levels, although he didn’t specify an exact time frame. Wells Fargo’s total loans outstanding at the end of the second quarter were down by $3 billion compared with the prior quarter, driven by declines in consumer and commercial real-estate loans. Commercial and industrial loans rose.” (Wall Street Journal, subscription required)
  3. Dallas Wants to Sell Off Seized Property to Commercial Developers. Here’s How That Could Impact Neighborhoods. “For years, Dallas has had a strategy to deal with vacant lots owned by people long delinquent on their taxes. Acquire the property and sell it to developers. The city sets one condition: the developers must build houses for sale to low-income homebuyers.” (The Dallas Morning News)
  4. This Is Why Americans Are Losing Confidence in the Housing Market “Today, less people are buying houses. According to Fannie Mae, a mere 24% of Americans feel like now is a good time to buy a house. Looking back to 2013, when 54% of consumers were confident in the housing market, it feels like a lot has changed in a small amount of time. It’s clear that the certainty of prospective homeowner is waning.” (MarketWatch)
  5. The Real Reason Amazon’s HQ2 Will Be Near Washington, D.C. “If you're trying to guess where Amazon's second headquarters will be, forget about the complicated analyses of metro-area workforces, education levels, housing costs, colleges and tax rates.” (CNBC)
  6. A Reality Check for Retail “About that retail revival. It might be less powerful than investors think. Strong second-quarter results from many retailers bolstered the optimistic view that industry bulls have been spinning this year.” (Wall Street Journal, subscription required)
  7. Manafort Forfeits $22 Million in New York Real Estate in Plea Deal “Former Trump campaign chairman Paul Manafort pleaded guilty to two counts Friday morning, agreeing to cooperate with special counsel Robert Mueller's investigation. As part of his plea deal, Manafort will forfeit a host of assets, including New York properties worth an estimated $21.7 million.” (NBC News)
  8. Amazon Launches ‘Storefronts’ As It Promotes Smaller US BusinessesAmazon has opened an online store where shoppers can buy specifically from U.S. small and medium-size businesses.” (CNBC)
  9. 7 Things to Keep in Mind When Signing an Office Lease “You’ve found a commercial rental location, you’ve probably completed your commercial rental application, and are now proudly on your way for applying for a real estate lease. Let’s look at several things you must keep in mind when you’re signing an office lease that will keep your business from sinking.” (Baltimore Post-Examiner)
  10. The Rental Market Is Soft. So Why Are Multifamily Deals Piling Up? “New York City rents have been falling for two years, but the Blackstone Group just bet $500 million on the sector. The firm — which already owns Stuyvesant Town-Peter Cooper Village and Kips Bay Plaza — has agreed to buy Parker Towers, a 1,300-unit complex in Queens from the Jack Parker Corporation. Though the deal allows Blackstone to capitalize on a relatively-affordable option for renters fleeing Manhattan, other multifamily investors, too, are looking beyond the current glut of new inventory.” (The Real Deal)
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