Urbanexus Update - Issue #98
Urbanexus Update - Issue #98
H. Pike Oliver compiles this weekly update of real estate and community development news focused primarily on the USA. The inclusion of an article does not imply endorsement. And please note that some links may lead to items that are behind a paywall.
Retail
Modell’s Sporting Goods to close all 153 stores
Modell’s Sporting Goods has filed for Chapter 11 bankruptcy. The fourth-generation, family-owned retailer will close all of its 153 stores throughout the northeast of the USA. The firm was founded in 1889. It began liquidation sales on Friday, March 13 and plans to continue operating its online platform.
Coronavirus impacting retail supply chains
According to a research report from JLL, while retail supply chains have already been affected, the health of retail as whole depends heavily on how long the pandemic lasts. Certain sectors have already been impacted, and those in the industry can model their current economic outlook on the course SARS (severe acute respiratory syndrome) took in 2003. However, whether that model will hold as the pandemic evolves remains to be seen.
Hospitality infuses retail shopping
Peng Liu, associate professor at the Cornell School of Hotel Administration, looks at how the hospitality industry can better serve retail shoppers by giving them enjoyable experiences.
Office
Aside from this being a pandemic, and public safety crisis, it's also impacting business in an unexpected but important way. The Coronavirus is accelerating the adoption of remote work by force and it has become a global experiment that will likely prove to sustain itself moving forward.
Housing
Coronavirus eviction and mortgage relief
In light of COVID-19, Miami-Dade County is temporarily suspending eviction notices, and San Jose, Calfornia's city council is looking to do the same. This comes on the heels of FHFA and FHAreminding servicers that mortgage relief options exist as coronavirus spreads. Fannie Mae also sent out an email on March 5, reminding borrowers about forbearance opportunities if they are impacted by COVID-19.
Where will quarantined Coronavirus patients go? As Covid-19 cases climb, cities may face a shortage of locations to quarantine and isolate people. In the U.S., it’s a uniquely local problem.
A tornado lures home speculators In the wake of a severe tornado, local housing activists fear that a wave of speculators could prey on North Nashville’s vulnerable homeowners.
According to ATTOM Data Solutions' U.S. Home Flipping Report, 245,864 single-family homes and condos in the United States were flipped in 2019, up 2 percent from 2018 to the highest point since 2006. The number of homes flipped in 2019 represented 6.2 percent of all home sales in the nation during the year, an 8-year high. That was up from 5.8 percent of all home sales in 2018 and from 5.7 percent in 2017.
While flipping activity rose, profit margins continued dropping. Homes flipped in 2019 typically generated a gross profit of $62,900 nationwide (the difference between the median sales price and the median paid by investors), down 3.2 percent from $65,000 in 2018 year and 6 percent from the post-recession peak of $66,899 in 2017.
Single-family rental community in Las Vegas
MODERNE Communities has purchased 14-acres in the city of North Las Vegas and plans to build a gated community with 185 single family homes offered for rent. MODERNE at Centennial will be the first purpose-built, single-story single-family rental home community in Las Vegas. The development will include a mix of one-, two-, and three-bedroom units, ranging from approximately 640 to 1,225 square feet.
Another plan to build denser housing in California
State Sen. Scott Wiener’s SB902 would essentially eliminate single-family zoning across the state by allowing multifamily housing in nearly all residential neighborhoods.
Should you buy a house in 2020?
Homebuying is not just about making a sound investment. Increasingly, it’s about the right way to put down roots, if that is what people want to do.
Regional and metropolitan dynamics
The geographic disparity in tech jobs grows The number of U.S. tech opportunities is increasing. But to stop their concentration in a few cities, some policy experts are now calling for government intervention.
Millennals find new hope In the heartland
In “Millennials Find New Hope In The Heartland,” Heartland Forward Senior Fellow Joel Kotkin and his contributors address a fundamental topic for future economic success in the Heartland: Will Millennials return and remain at higher rates? The answer to this question is critical as Millennials are the largest generation, eclipsing the Baby Boom generation, and they represent the largest portion of the American workforce. The economic ramifications have made this cohort a highly prized demographic target. If Millennials do not find the Heartland more attractive, even the most well-conceived and articulated economic development strategies will be rendered mute.
Portland’s growth attracts investors an — www.connect.media Demand continues to drive the Portland apartment market to new pricing highs, and despite new local regulations, cap rates compressed for a record 8th year in a row and average price per unit continued to rise. Kidder Mathews reports there was $2.3 billion in apartment sales in 2019. Transactions in the Portland Metro and the Willamette Valley dipped 5%, yet overall volume increased by 30%.
Transit use declines in L.A. areas with the best service
In Los Angeles County, the nation’s most populous and core of the nation’s most densely populated urban area, transit commuting is dropping fastest in areas with the most comprehensive transit service. This is illustrated by an examination of the 5-year trend from 2008-2012 (middle year 2010) to 2013-2017 (middle year 2015) for Public Use Microdata Areas (PUMAs). The experience of Los Angeles County — with its dense urbanization and ideal weather — should be a warning to those, in California and elsewhere, who assume that high density, “transit oriented development” and substituting transit for driving alone naturally go together. In fact, they do not.
Real estate transactions
A preliminary title report (PTR) will list some very key information, including the legal description of the property and ownership vesting. Another key element within the PTR is the list of title exceptions, which are items that the title company will not insure against. And some of these exceptions are referring to recorded documents – sometimes referred to as “underlying documents”.
Environment and resilience
Over time, infectious diseases have been humanity's constant companion.
Buildings can make you sick or keep you well
Proper ventilation, filtration and humidity reduce the spread of pathogens like the new coronavirus (COVID-19.)