145 Million Americans Own REITs, Are You One?

Quote for Today:

“You said I was weak. You said I couldn’t do it. Thank you. You gave me everything I needed to prove you wrong.”

– Steve Prefontaine

(Source)

There’s some interesting – though perhaps not surprising – commercial real estate data coming out these days.

For instance, many hotels are being snapped up at very good prices and then converted into apartments. That’s not an easy switch to make, yet that’s the money-making trend these real estate investors are following.

No doubt (or at least hopefully), they’re aware that major tech hub cities saw double-digit declines in rental prices. That’s especially true in the Chicago, New York City, San Francisco, Santa Clara, and Boston areas.

Office buildings aren’t doing nearly as bad as hotels, collectively speaking. But that hardly means they’re operating at optimal capacity. Motley Fool’s MillionAcres might sum it up best when it mentions how:

“In 2019, law firms accounted for 5.9% of all U.S. office leases, according to CBRE. And in strong markets like Manhattan, they ranked fifth from the top for the largest office leases signed that year.

“But law firms haven’t exactly been rushing to re-sign leases. Quite the contrary – new leases in the legal sector have largely been put on hold, reports Cushman & Wakefield (CWK), and firms that are renewing are limiting themselves to short-term agreements. Meanwhile, those who are entering into longer-term leases are downsizing their office space by anywhere from 10% to 40%.”

Apparently, that last part is due to expectations of permanent layoffs. Cushman & Wakefield found in a recent survey that law firms are looking to let 15%-30% of their staff go soon enough.

Everyone needs to interpret that information as they see fit according to their personal risk assessments and financial positions, of course. For my part though, I’m still busily – and successfully – building up a beautiful REIT paradise in the middle of all this.

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Brad Thomas is the Editor of the Forbes Real Estate Investor.

Disclaimer: This article is intended to provide information to interested parties. As ...

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