Your Daily Digest for Real Estate Investing, 1/25/21

Sun Belt and Mountain West are where it’s at, homebuilder big boys dominate, AMC steps away from the brink, why and which REITs should rally, and how one is converting a mall to apartments.

In Today’s News

Forget City vs. Suburbs. It’s All About the Sun Belt and the Mountain West

In a new report, JLL (NYSE: JLL) predicts corporate urban-to-suburban moves will remain limited in 2021, and that leading occupiers will likely find they don’t need to choose a purely urban or suburban strategy as they analyze talent demand and space needs. The real winners over the next 36 months will be Sun Belt and Mountain West submarkets.

Why it matters: picks out highlights from the report, including San Francisco to Austin as the single most popular migration route, that can help guide real estate investors’ thinking about where to put their money.

Top 10 Builder Share Tops 30% for Second Consecutive Year

The top 10 builders captured 30.4% of new single-family home closings in 2019, according to the National Association of Home Builders (NAHB).

Why it matters: The big names’ share of the residential construction market has been climbing for 30 years, and many of these market leaders are publicly traded companies that can merit a look from investors in these heady times for homebuilding.

Today on Millionacres

AMC Avoids Bankruptcy Again: Can It Hang On?

AMC Entertainment (NYSE: AMC) was able to scrape together an additional $713 million, bringing its total up to $917 million and avoiding bankruptcy in the process.

Why it matters: AMC is one of the nation’s major movie theater operators and a major tenant in those commercial properties its theater inhabits. Keeping afloat long enough to see if a pandemic recovery can revive the movie business would help a lot of real estate investment trusts (REITs) and other real estate investors.

3 Things REIT Investors Should Know in 2021

Largely because of the pandemic, the average REIT generated a roughly minus 6% total return in 2020. However, 2021 could be a much better year for the sector. That’s because many of the headwinds facing REITs should fade in the coming months.

Why it matters: Millionacres’ Matt Frankel lays out which sectors, and which players inside those segments, are positioned to ride out a recovery from the pandemic particularly well.

PREIT to Turn Mall Into Apartments: Will Others Follow?

While emerging from bankruptcy, PREIT (NYSE: PEI) has secured approval to proceed with development of over 1,000 apartment units at its south New Jersey Moorestown Mall. The question is: Will more mall operators seek to follow PREIT’s lead?

Why it matters: Millionacres’ Maurie Backman shares some upside and downs to the strategy but does note that apartments are better than empty space just sitting there at a time when such brick-and-mortar retail’s future looks particularly bleak.