All Forum Posts by: Sanjeev Advani

Amid surging demand for apartments, the US rental market is contending with the largest supply of new units in four decades. A report from Apartments.com shows that 178,000 newly constructed units entered the market in Q3, bringing the projected year-end total to 636,000 units. This influx is limiting rent growth nationwide, particularly in the Sun Belt, where oversupply has led to rent declines.

Nationwide, vacancy rates edged down to 7.8% as move-ins outpaced move-outs. However, national rent growth remains at 1.1%, with a slight 0.5% dip from Q2. Regions like Washington, D.C., Richmond, and Detroit led rent increases, while Austin and Raleigh saw year-over-year declines due to high supply. The Northeast and Midwest are expected to be less affected by the oversupply compared to the Sun Belt and luxury properties. The rest of 2024 and early 2025 will likely reveal more about how different segments of the market adapt to these unique conditions.

The Philadelphia-area retail landscape is evolving, with experiential retailers claiming anchor spots at Moorestown Mall, Neshaminy Mall, and King of Prussia Mall. Parky’s entertainment venue is set to open in Moorestown, New Jersey, while Neshaminy Mall welcomes Fusion Fitness as a fitness-centered anchor. King of Prussia Mall will soon house Netflix House, offering escape rooms, live events, and more in an immersive experience set to open in late 2025.

These entertainment-focused developments highlight a broader trend toward creating mall spaces that blend shopping, social activities, and community engagement. By catering to consumers’ demand for unique experiences that can’t be found online, malls are redefining the purpose of brick-and-mortar retail to thrive in the digital age.

Comic book legend Stan Lee’s former Los Angeles property is now listed at $8.8 million. Alongside this 5,000-square-foot Bird Streets home, buyers have the option to acquire three life-size Spider-Man figures signed by Lee. The single-story home, purchased by Lee as a gift for his daughter, boasts seven bathrooms, a pool, a movie theater, and a spacious entertainment deck. Nestled in the coveted Bird Streets above the Sunset Strip, it offers a mix of privacy and urban convenience. For Marvel fans and luxury home seekers alike, this is an opportunity to live in an icon’s legacy.

This November, California voters will decide on Proposition 33, which could repeal the Costa-Hawkins Rental Housing Act, expanding rent control options across the state. It’s a familiar debate, as Californians have faced this choice twice since 2018.

Under the 2019 Tenant Protection Act, rent hikes have been capped at 10% per year or lower if inflation rates dictate. Current rent growth trends reveal variations across major cities:

• >San Francisco saw moderate growth at 4%, still below its pre-pandemic highs.
• >San Jose’s growth slowed to 2.7%, with a possible rise to 4.5% by 2025.
• >East Bay rents dipped slightly but are expected to rise 3%-4% as vacancy decreases.
• >Sacramento remains affordable at $1,850/month, with minimal growth.
• >Los Angeles faces near-zero growth amid economic strains and resident outmigration.
• >Orange County’s rates are steady, with limited increases expected until 2025.
• >Inland Empire and San Diego have minimal growth due to increased supply.

The upcoming vote could reshape the rental landscape significantly, influencing affordability and availability across California’s rental markets.

As e-commerce competition intensifies, Philadelphia-area malls are turning to experience-focused retailers to draw shoppers back. Moorestown Mall will welcome Parky’s, a two-story entertainment center, in early 2025, while Neshaminy Mall signed its largest lease since 2017 with Fusion Fitness, an athletic complex opening mid-2025. King of Prussia Mall will host the first-ever Netflix House, an immersive entertainment venue, in late 2025. These experiential retailers not only fill large vacant spaces but also reinvent malls as entertainment destinations that can’t be matched online, paving the way for a reimagined retail experience.

@Mario Abundez - if you have any deals let me know!

Public REITs have seen a strong return to capital markets in 2024, raising $64.9 billion by Q3. Driven by favorable interest rates and stock market performance, debt issuance has been the main capital driver. Retail and data center REITs lead, with Realty Income and Digital Realty Trust among top fundraisers.

While REITs raised significant capital, property acquisitions have slowed, with more sales than purchases recorded. Lower interest rates, however, are expected to keep debt issuance attractive, while a rise in REIT stock prices could boost equity offerings. Positive market conditions and recent IPOs mark a new chapter for REIT growth in the coming year.

Both Democrat and Republican presidential campaigns have found common ground on housing policy by proposing the use of federal lands for homebuilding. With the U.S. short between 1.5 and 5.5 million housing units, Vice President Kamala Harris and former President Donald Trump see federal land as a resource for tackling the housing crisis.

Their running mates, Gov. Tim Walz and Sen. J.D. Vance, elaborated on the idea, with Vance advocating the development of non-protected federal lands for housing. Some bipartisan congressional legislation, like the HOUSES Act, supports this effort by making portions of federal land available for residential development.

While this approach has promise, experts warn that opening federal lands is only part of the solution. The land is often far from urban areas where housing is needed most, and environmental concerns must be balanced. Despite these challenges, the proposal could complement other housing reforms aimed at addressing the nationwide shortage.

Buy Buy Baby is closing all 10 of its stores by the end of 2024, marking the end of its brief brick-and-mortar revival. Dream on Me Industries, the company behind the brand’s rebirth last year, announced the shift to a digital-first strategy, focusing solely on online shopping. Stores in Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, and Virginia are holding liquidation sales.

Buy Buy Baby originally closed in 2022 as part of Bed Bath & Beyond's bankruptcy. Dream on Me acquired the brand’s intellectual property and reopened a few stores, but with rising e-commerce trends, physical stores became unsustainable. As the retail sector faces continued strain, Buy Buy Baby’s transformation highlights the shift toward online retailing, even as Bed Bath & Beyond products make a limited return to physical stores through the Container Store.

Chicago is about to make history as it becomes home to one of the largest quantum computing campuses in the world. Proposed by Related Midwest, the development aims to transform the long-vacant South Works site, once owned by U.S. Steel, into a cutting-edge research hub anchored by PsiQuantum. The project seeks zoning approval to build over 59 million square feet of space dedicated to quantum research, offices, and cryogenic facilities.

This ambitious project dubbed the Illinois Quantum and Microelectronics Park, is backed by both state and federal agencies. PsiQuantum is projected to invest around $1.1 billion, potentially creating over 150 jobs. With nearby Argonne and Fermi National Laboratories, Chicago is set to become a global leader in quantum research. The economic benefits could extend to local communities, spurring growth and development across the region.