5 at 5: Your Daily Digest for Real Estate Investing, 3/15/21

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© Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 3/15/21

“Gloomy Gus” economics writer all smiley face, big bucks take plunge on big hotelier, new Toys R Us owner plans U.S. revival, reasons for optimism after office exodus, and Airbnb bust.

In Today’s News

17 Reasons to Let the Economic Optimism Begin

A New York Times reporter who’s tracked decades of gloomy trends sees things lining up for roaring growth.

The Millionacres takeaway: Real estate investing doesn’t take place in a vacuum. Here are 17 ways [subscription required] to help inform your thinking about what to do and when to do it as we all look down the road to a (for the most part) vaccinated America.

Blackstone, Starwood Capital to Pay $6 Billion for Extended Stay America

Blackstone Group (NYSE: BX) and Starwood Capital Group have agreed to acquire hotel owner and operator Extended Stay America (NASDAQ: STAY) for $6 billion, taking ownership of a hotelier that has done better than many but still struggled during the pandemic.

The Millionacres takeaway: This big deal is a big deal, not just because it’s the largest hotel sale since the pandemic began, but because of the confidence some of the biggest of the big money is showing in this beleaguered sector.

New Toys R Us Owner Plans to Open Stores in U.S. Again

CNBC reports today that brand manager WHP Global has acquired a controlling interest in Tru Kids, the parent company of Toys R Us and Babies R Us. The new owner says they’ll open physical locations in formats such as flagships, pop-ups, airport locations, or mini stores inside other retailers’ shops. But no malls.

The Millionacres takeaway: WHP Global didn’t say how many locations it plans to open, but this is still reasonably good news for commercial real estate investors (except for the money you might have in mall real estate investment trusts (REITs), of course).

Today on Millionacres

The Pandemic Didn’t Kill Office Property Values

Office REITs have for the most part taken a pounding in the past year, but now might not be the time to dump shares or avoid buying some of the more promising stocks in that sector right now.

The Millionacres takeaway: Our Matthew DiLallo explains why that pessimism might be exaggerated, pointing both to some high-dollar recent sales and the expectation occupancy will pick back up as the pandemic recedes.

Short-Term Rentals See Worst Month in Pandemic, but the News Isn’t All Bad

Short-term rentals (STRs) saw demand plunge in February. According to STR data firm AirDNA, demand for U.S. short-term rentals fell -27.5% over the year. In the 50 biggest cities, it dropped a whopping -55%. It was the worst month since the pandemic began, AirDNA says.

The Millionacres takeaway: Our Aly Yale says there’s good reason for optimism for STR investors. That includes those millions of participants in Airbnb (NASDAQ: ABNB) and its competitors. Bookings are up, rates are rising, and as vaccines roll out and travel restrictions lift, business should continue to strengthen.

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