5 at 5: Your Daily Digest for Real Estate Investing, 10/15/21

Retail sales rise, raising hopes for holiday cheer; a message for mREIT investors; Iron Mountain shakes off the rust; ULI report; and CRE’s societal responsibilities.

Reckoning With Retail Sales

Retail Sales Rise, Showing Resilient U.S. Consumers

Spending increased last month despite supply constraints and the delta variant, reflecting both healthy demand and higher prices, The Wall Street Journal reports today [subscription required].

The Millionacres takeaway: Consumer spending has long been recognized as the prime driver of the U.S. economy. Inflation, of course, means people are spending more for the same stuff, but the resilience of spending in the face of supply shortages is showing, too.

Holiday Spending Could Rise by 5%: Will It Save Retailers?

Our Maurie Backman wraps up the multiple reasons for encouragement this year for brick-and-mortar retailers as the holidays approach.

The Millionacres takeaway: Consumers are not only willing to spend more this year; they seem to be willing to do it in person. That, indeed, would be a gift for all that commercial real estate wrapped up in retail.

Today on Millionacres

Dangers Lurk for These 3 REIT Dividends

The big threat for the mortgage real estate investment trust (mREIT) sector these days comes courtesy of the Fed, our Brent Nyitray explains.

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The Millionacres takeaway: mREITs are especially attractive to income investors because of their yields. They also have their own unique vulnerabilities. Brent provides food for thought here for folks like me who invest in them, and for those considering it.

Where Will Iron Mountain Be in 10 Years?

Real estate investment trust (REIT) Iron Mountain (NYSE: IRM) currently offers investors a fat 5.8% dividend yield. But before getting sucked in by the massive dividend, you need to step back and understand that Iron Mountain is making big changes to its business.

The Millionacres takeaway: Our Reuben Gregg Brewer explains that Iron Mountain is the undisputed leader in physical storage today but is undergoing a transition to digital that is both necessary and challenging.

Also In Today’s News

CRE Leaders Growing More Alarmed By Climate Crisis, Other Social Problems

Hot sectors and rising markets typically highlight the Urban Land Institute’s (ULI) annual Emerging Trends in Real Estate report, Bisnow reports [subscription required], but the 2022 edition also emphasizes other major shifts in commercial real estate.

The Millionacres takeaway: “The real estate industry is now being called to participate in the improvement of society,” says a PwC consultant who worked with the ULI. Doing good while doing good is an ever-growing imperative, and emerging ways to profit from purpose will be worth watching.

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The Motley Fool has a disclosure policy. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from Millionacres is separate from The Motley Fool editorial content and is created by a different analyst team.

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