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10 Must Reads for the CRE Industry Today (October 18, 2019)

The Federal Reserve eyes another rate cut ahead of its meeting in two weeks, reports the Wall Street Journal. Increasing number of skyscrapers indicates the market is potentially near a market top, according to MarketWatch. These are among today's must reads from around the commercial real estate industry.

  1. Fed Eyes Another Rate Cut, Weighs When to Stop “Federal Reserve officials are heading into their meeting in two weeks likely to cut interest rates while debating whether they have done enough for now to vaccinate the economy against growing risks of a sharper slowdown.” (Wall Street Journal, subscription required)
  2. The Skyscraper Indicator Shows We’re Near a Market Top “The same irrational exuberance that persuades mediocre stock investors that everything they touch turns to gold also infects developers who leverage themselves to the hilt with cheap money near the peak of a cycle. And the most visible indicator of that is the skyscraper.” (MarketWatch)
  3. For Landlords, a New Tax Break Comes With Strings Attached “Rental real estate is renowned for its many tax breaks, and the 2017 tax overhaul added a new one. Landlords who want to claim it for 2019 should be planning now, because they may need to send 1099 forms early next year.” (Wall Street Journal, subscription required)
  4. WeWork Could Run Out of Cash by Mid-November — Here’s What Would Happen Next “Last year WeWork boasted about becoming the biggest private tenant in Manhattan, London and Washington, D.C. Those feats have now become an albatross, and WeWork’s biggest investor, SoftBank, is scrambling to keep the coworking space provider from spiraling into bankruptcy.” (CNBC)
  5. How to Capitalize As Millennials Leave Major Cities “Statistics show there is a decrease in younger urban residents than years prior, with many leaving in pursuit of affordable housing, better schools.” (GlobeSt.com)
  6. How Landlords Are Reaping the Benefits of Coworking “Some shared space providers are now taking a different approach. As coworking has become a more permanent solution for some tenants, coworking companies are finding it increasingly advantageous to work more closely with landlords.” (Commercial Property Executive)
  7. CRE Tech Spending Should Continue Through a Recession “Jim Berry, Deloitte’s US Real Estate sector lead, thinks the CRE industry needs to move from the mantra “location, location, location” to “location, experience, analytics.” He says the latter two elements are becoming equally as significant in the real estate decision making process.” (GlobeSt.com)
  8. Industrial Investors Shift Strategies: Report “Industrial investors are not pulling back from the sector because of concerns about a slowing economy and potential impacts from tariffs, but they are shifting strategies and looking to find safe havens, including gearing their portfolios toward core markets and land-constrained markets that provide potential for higher rent growth, according to a new RCM-SIOR industry report.” (Commercial Property Executive)
  9. Major U.S. Metros Added 682 Million Feet of Office Space Over Last Decade “Regional U.S. growth favors urban or suburban, but rarely both.” (World Property Journal)
  10. 3 Reasons to Invest in Real Estate, According to a Financial Planner who Owns 10 Rental Properties “Making money in real estate isn't for everyone. It takes grit, time, and most importantly, cash.” (Business Insider)
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