Lights, cameras, Regal back in action; why cash-out refinancing is different this time; restaurant closings: the impact; a strong year for rentals unfolding; retailers and on-demand warehousing.
Today on Millionacres
Last October, Cineworld Group (LSE: CINE), the parent company of Regal Cinemas, shut down all of its U.S. and U.K. movie theaters. Now, our Maurie Backman reports, around 500 theaters are welcoming movie fans back this month at limited capacity. In most cases, that means 25% to 50% of seats can be filled, depending on local guidelines.
The Millionacres takeaway: There’s a Regal theater in my neighborhood, and I’ve got this gift card gathering dust. But will I use it? That kind of question times a million or so more is what will determine the fate of this important segment of commercial real estate.
Homeowners in the United States are taking cash out of their homes at a pace last seen just before the Great Recession. Cause for concern?
The Millionacres takeaway: Our Matt Frankel, a Certified Financial Planner and long-time stock market investor, says he knows “this time it’s different” is a perilous phrase. But here he explains why this time, it actually is.
It’s estimated that more than 10% of U.S. restaurants have closed their doors since the coronavirus outbreak hit in March 2020, according to food service research firm Datassential. That figure includes full-service and limited-service restaurants as well as food trucks.
The Millionacres takeaway: Food trucks have actually seen proportionally the biggest damage, as people no longer populate workplaces as they did pre-pandemic thanks to remote work. And overall, as our Maurie Backman, points out, the resulting long-term vacancies and lower property values can damage communities for years to come, unless there’s serious legs to that quick turnaround that could be unfolding now as vaccinations take hold.
Also in Today’s News
Yardi Matrix says the average U.S. multifamily rents in March increased $6 to $1,407. In addition, Yardi says multifamily rents had one of the strongest first quarters in a few years, with rents up 0.8% from the previous quarter.
The Millionacres takeaway: This piece in Real Estate Investing Today notes headwinds and tailwinds for landlords: stimulus payments aimed at catching up on back rents and extensions of eviction moratoriums. The wind blows both ways.
Companies that provide “on-demand” warehousing in the form of short-term contracts have experienced an uptick in demand as a result of the pandemic, which industry analysts say is explained by supply chains looking for agility and flexibility in their operations, Retail Dive reports.
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