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Seven Must Reads for the CRE Industry Today (Feb. 1, 2022)

Extended stay hotels have been among the clear winners in the pandemic, reports The Wall Street Journal. looks at how M&A activity is affecting corporate real estate holdings. These are among today’s must reads from around the commercial real estate industry.

  1. Extended Stay Hotels ‘Print Money’ for Investors in COVID-19 Downturn “Leisure travel flourished after Covid-19 lockdowns eased. Business travel is still depressed. But one type of lodging has filled rooms throughout the pandemic: extended stay hotels. These properties, which cater to guests staying a week to three months, were popular with first responders, nurses, military and construction workers during the early months of Covid-19. As the pandemic wore on and more Americans began to travel, they attracted vacationing families, project managers and information technology workers.” (The Wall Street Journal)
  2. How the Fed’s Policy Shift Is Rippling Through the Housing Market “The Federal Reserve’s decision to end its era of easy money is rippling through the mortgage market, driving up the cost of buying a home. The central bank had been the biggest buyer of pools of home loans since the start of the pandemic. Now it is reversing course, winding down its purchases and laying the groundwork to shrink the $2.7 trillion stockpile it has built up. These mortgage-backed securities, hot investments for much of the pandemic, are now selling off.” (The Wall Street Journal)
  3. How Increased M&A Activity Is Affecting Corporate Real Estate “Last year, merger and acquisition activity increased significantly, and experts expect the momentum to continue in 2022. Real estate is the second or third largest expense on a company’s balance sheet, making it a top priority during a corporate merger. Companies undergoing a merger or acquisition will not only look to consolidate a real estate portfolio, but they will also look at operations, leases and technology. Rob Raymond, a managing director in the Real Estate practice at FTI Consulting, has seen real estate account for as much as 16% to 22% of general and administrative expenses.” (
  4. Why the AI Revolution in Real Estate May Never Happen “Few things in the tech world get people more excited than artificial intelligence. AI research has been around for decades, but we’ve seen endless hype about it in the past few years. Elon Musk made headlines (as he always does) in 2018 when he said super-intelligent AI poses the greatest existential threat to humanity, more so than climate change and nuclear weapons. Various studies and reports lately claim AI will massively boost the economy, followed by the predictable headlines that robots are coming for our jobs.” (Propmodo)
  5. Evergrande Finale “Last September, Evergrande, once the largest property developer in China, was reported to have racked up debts of more than $300 billion. The home builder brought in external advisers to devise a plan to repay creditors, suppliers and institutional investors. Since then, the world has been awaiting a “Lehman moment” for China — i.e., a financial market implosion similar to when the investment bank’s collapse in 2008 helped topple the U.S. economy, and much of the world’s.” (Commercial Observer)
  6. Paris Baguette Debuts Neighborhood-Inspired Store Design “Paris Baguette is giving itself a brand makeover as it looks to expand nationwide. The fast-growing, French-inspired neighborhood bakery café has unveiled a reimagined store and customer experience as it ramps up for major expansion. With more than 90 U.S. locations, primarily on the East and West coasts, Paris Baguette expects to have 1,000 locations by 2030.” (Chain Store Age)
  7. Domino’s Will Pay You $3 Not to Get Your Pizza Delivered “Facing a shortage of workers, Domino's Pizza is hoping to incentivize its customers to choose carryout over delivery. Beginning Monday through May 22, Domino's will be ‘tipping’ customers $3 if they order online and choose carryout. The credit can be used on a future online carryout order. The promotion could help alleviate stress on its limited number of workers right before the Super Bowl, which is one of the company's biggest pizza sales days.” (CNN Business)
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