NewsPour 8.6.23

Real Estate News Headlines

News roundup of top recent weekly stories include hybrid work reshapes real estate, risk of emerging city doom loops and strip mall real estate heats up.

Hybrid Work Reshapes Real Estate

Hybrid work looks to have permanently changed the real estate landscape. Office attendance has stabilized at 30 percent below prepandemic norms. Up to 7 percent of people in urban cores have left and don’t plan to come back and 20 percent relayed it was possible because of being able to work more from home. People are shifting where they live and shop. Real estate in the suburbs and types of properties including mixed use are benefitting. Watch our discussion in our YouTube video here.

Emerging City Doom Loops

Falling quality of life in U.S. cities with rising crime and other issues is driving migration out of U.S. cities. Fifty-four of the 88 largest U.S. cities reported population losses between 2020 and 2021 according to Brookings Institution. Cities lost some $360 billion due to lost tax revenues from 2020 to 2022 according to the National League of Cities. This is causing concerns of a doom loop where falling tax revenues drive declines in services and more people leave to cause further declines. Watch our discussion on our YouTube video here.

Strip Mall Real Estate Heats Up

As more people shop in the suburbs strip mall real estate is heating up. Leased occupancy at strip centers reached 95% in the first quarter–a level last reached about eight years ago according to real estate advisory firm Green Street. Landlords are signing leases faster than new tenants can move in at higher rent rates. Watch our discussion on our YouTube video here.