What do CBRE, Equity Residential, Hines, Lowe’s, Host Hotels & Resorts, Lennar, Macerich and Prologis have in common? They just invested in Brendan Wallace and business partner Brad Greiwe’s new venture fund, Fifth Wall Ventures. Wallace explained this partnership saying, “Often, new solutions in real estate aren’t hard to build from a tech perspective. What’s harder is go-to-market and distribution risk. If you can’t sell to one of the big [real estate] incumbents, it’s hard to succeed.”
This week, Marcus & Millichap’s CEO, Hessam Nadji, told the National Real Estate Investor that he sees the current commercial real estate cycle as a, “‘Steady as she goes’ scenario.” He notes that the industry is in its seventh year of growth, and, if you look at averages, expansion generally lasts only five and a half years. Looking at that measure, we’re overdue for a recession. But, compared to other cycles, job growth has been slower, creating a gradual pace of inflation, which shouldn’t create an overheated economy. Maybe the question to ask is, “How long will this current cycle last, and how far down will the market go after?
In a change of pace, Forbes calls the “death of retail” a red herring. Makes for great click bait. Here are the five reasons Forbes sites for the industry remaining healthy:
“1) Retail sales in the first quarter of 2017 increased 4.1% over the first quarter of 2016. 2) Most of the chains closing stores have seen their problems build over decades. 3) There are thousands of retail stores OPENING in 2017. 4) Retailers are making long overdue investments in people. 5) Malls and retailers are working to bring experiences back into their doors.”
At the same time Airbnb is coming to an agreement with San Francisco to start registering rental properties, the company is also seeking exceptions to state housing laws in New York. Of Airbnb’s estimated 8,000 hosts in San Francisco, only about 2,100 are registered. But, Airbnb said, “It will set up a simple way for hosts to register with the city through the company’s website.” Unfortunately, things in New York haven’t gone as smoothly. Anti-Airbnb legislators are apparently enraged, saying, “Once again Albany is about to be subjected to Airbnb’s corporate-funded Astroturf lobbying,”
In a recent study titled, Rethinking Transportation 2020-2030: The Disruption of Transportation and the Collapse of the ICE Vehicle and Oil Industries, they predict the number of passenger vehicles on American roads will drop from 247 million in 2020 to 44 million in 2030. The study highlights that parking will eventually be obsolete, and cities need to remove parking minimums in favor of new construction and road infrastructure design. Stanford Continuing Studies instructor and James Airbnb said, “One of the big issues is what do you do with that parking space, and what do you do with the land that you free up?”