Your Weekly Wrap Up Newsletter #3

Weekly Wrap-Up CRE Newsletter #3

Please enjoy Prosperity CRE’s weekly newsletter designed to keep you informed and engaged with timely commercial real estate issues and data, and other points of interest.

Office Use and Leasing Recovering Throughout US
Office use is growing steadily as businesses and employees return to the office. Up 4.4% Year-over-year in September. Some markets, like Austin, Texas, are up over 10%. Q3 2021 office leasing is up 19.4% nationwide Year-over-Year. https://pcre.xyz/23m

Office Leasing in Q3 Alone = 2 Years of Lease-Up Pre-Covid
The nation’s office market net absorption lease-up in Q3 2021 totaled 11.8 million square feet. This is equal to two entire years of lease-up in a pre-Covid strong economy, which had a 5-year average net absorption lease-up of 65.5 million square feet. https://pcre.xyz/pbe

New JLL Report Shows Strong Investor Demand for Value-Add Office
“As part of this rotation back to office, value-add is definitely back on investors’ radar reinforcing the investment community’s confidence in the long-term stability of the office market,” said Coleman Benedict, senior managing director and co-head of JLL’s National Office Practice. https://pcre.xyz/c7b

Retail Coming Back Strong
Retail sales are up 14.9% Year-over-Year. With a strong job market and unemployment below 5%, consumers flush with capital from pandemic relief bills & the broader economic recovery, people are hitting the stores and spending more. And it’s not just online now that stay-at-home orders are lifted. People are back out shopping and dining. Brick & mortar retail vacancy dropped another 20 basis points to 5.3%. https://pcre.xyz/qwb

Free Due Diligence Manual

We have a new property that we are working on acquiring, but we can't say anything about it just yet. We promise you'll be among the first to hear about this exciting (and profitable) opportunity.

However, the team just got back from the first due diligence trip yesterday and Zach & Mark wanted to give newsletter subscribers free access to the policies and procedures we are using for our due diligence on this California Office property.

This is our 31-page no-fluff working manual with legal, financial and physical nuggets of truth so you invest as smart capital does.
Get your free copy by CLICKING HERE
(no email required)

Capital Corner

Last week we talked about inflation which is still weighing heavy on many American minds and checkbooks. The November passage of the $1.2 Trillion infrastructure bill represents a much-needed infusion into America's roads, bridges, highways and digital connectivity to help shore up the existing crumbling infrastructure but also help make the US more competitive. This amount, however, represents about $160 Billion in new deficit spending, according to the CBO, which may or may not be a consolation for those hypersensitive to the sticker shock of the bill's price tag.

Infrastructure spending is key when considering the type of spending which will create new American jobs throughout the country over the next several. Higher paying domestic jobs, capital investment, competitiveness all go very long into offsetting inflation, while increasing the country's GDP.

Indeed, Mark Zandi, the chief economist at Moody's Analytics had this to say about the just-passed infrastructure bill and the upcoming (and highly divisive) Social Spending bill: "The bills do not add to inflation pressures, as the policies help to lift long-term economic growth via stronger productivity and labor force growth, and thus take the edge off of inflation." https://pcre.xyz/uj9 We've yet to see how both play out and how they affect the commercial real estate landscape.