Your Daily Digest for Real Estate Investing, 09/28/2020

Multifamily market signals, survey shows improvement in small biz gloom, Colony Capital bails out on hotels, how to handle pesky tenants, and the return of the cubicle.

In Today’s News

Berkadia: 3 Numbers Signal the Future of Multifamily Real Estate

This blog post by the Berkshire Hathaway (NYSE: BRK-B) brokerage and services outfit says to watch multifamily sales volume, rent payments made, and consumer confidence scores. They paint a somewhat promising picture.

Why it matters: The Berkadia research shows that multifamily deals comprised the largest share (40%) of CRE deals in August, reflecting that segment’s resilience, and that while investment sales activity has declined during the pandemic, “there is little data to support the narrative that we will see a trend of investors fleeing primary and coastal markets.”

Small Firms Now Somewhat Less Apocalyptic About the Pandemic

Sixty percent of business owners said they will be able to remain open for more than half a year, up from April’s figure, a new survey shows.

Why it matters: Losing 40% of your tenants doesn’t sound very good, but it’s better than the 54% who said they couldn’t make it six months when the same survey was done in April. CRE landlords will take what they can get at this point.

Colony Capital Sells $2.8 Billion Hotel Portfolio for $67 Million

The sale of 197 properties gets the real estate investment trust (REIT) some cash but a lot more debt relief. Highgate Holdings will assume $2.7 billion of debt in its purchase from Colony Capital (NYSE: CLNY).

Why it matters: Colony apparently now will focus on data centers and digital infrastructure, according to this Bisnow report. That’s another reason to update yourself on a REIT that’s holding and planning when you’re considering a buy. They can change a lot and often.

Today on Millionacres

My Tenant Calls Over Every Minor Thing. What Can I Do?

Tired of dinner time calls about a closet light bulb burning out or some other minor inconvenience that looms large to crises-minded tenants?

Why it matters: Millionacres’ Laura Agadoni used to have that issue with her properties. She shares how she solved the problem in ways that protect the tenant, the landlord, and the property.

The Return of Cellular Office Space

Classic cellular office design — think cubicles — has been replaced in recent years by all kinds of semi-open to wide-open layouts thought to encourage collaboration and community. Then there was a pandemic.

Why it matters: Millionacres’ Lena Katz revisits the idea of cellular office space and lays out why, in one form or another, it’s probably back for good. But not in the exact same form. Check out this piece for where she sees the balance between safety and togetherness.

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