COVID-19 relief package moves closer, jobs report shows slow recovery, CEOs see little office space demand, real estate agents and the vaccine, and CoreLogic sells itself.
In Today’s News
Both chambers of Congress have now passed a budget resolution, a key procedural step that sets up the ability for Democrats to pass President Joe Biden’s sweeping $1.9 trillion COVID-19 relief package without the threat of a filibuster from Republicans who oppose it.
Why it matters: That package contains multiple items of real estate investor interest, including $25 billion in rental assistance and a continuing eviction moratorium, for starters. The whole thing is dubbed the American Rescue Plan. We shall see.
U.S. employers resumed hiring in January, but the weak pace of job gains suggested a long road remains for the recovery, The Wall Street Journal [subscription required] reports.
Why it matters: Well, at least it’s a jobs gain. In December, that metric was in the red for the first time since the pandemic began.
A survey of more than 100 corporate chief executives found only 4% with plans to add office space. And 75% said they’ll need less office space in the future, Fortune says.
Why it matters: It’s hard to see this as anything but more bad news for office space owners and investors, and it goes beyond that to the retailers and everything else that’s part of the urban work life infrastructure.
Today on Millionacres
Property data giant CoreLogic (NYSE: CLGX) has been sold to equity investors Stone Point Capital and Insight Partners for about $6 billion in cash, but there could be more to come.
Why it matters: Other suitors say they may not give up, and the bidding war for this company reflects the value that investors are placing on real estate data companies, and their stocks, in general.
The last couple of weeks on Wall Street have gotten a little crazy, specifically noting the short- squeeze mania. Mall real estate investment trusts (REIT) like Macerich (NYSE: MAC) got caught up (and then down) in the melee. But there was one giant Macerich investor that made a big change, and it’s worth thinking about that move if you own the REIT or any of its peers.
Why it matters: Millionacres’ Reuben Gregg Brewer provides some penetrating analysis here on what’s happening with this mall REIT and how that can inform investment strategies around that whole troubled sector.
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