5 at 5: Your Daily Digest for Real Estate Investing, 10/8/21

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© Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 10/8/21

By the time you get to Phoenix, it could be too late; why this homebuilder’s Carolinas coast strategy matters; FedEx staffing shortage is just the beginning as job growth tails off; industrial space is prime, and LA is hot.

Today on Millionacres

Should Landlords Flock to Phoenix?

Scottsdale, Arizona, is now the 10th most expensive place to rent an apartment in America, and it’s not alone in its big metro market when it comes to high-dollar rental properties. But taking advantage of that potential can be a challenge.

The Millionacres takeaway: Our Aly Yale notes that while Phoenix may be a great place to have a rental property right now, it’s not an easy place to buy one. With inventory down and prices (and competition) up, finding a low-cost, high-ROI investment home is an uphill battle. She offers some tips.

Why 1 of the Biggest Homebuilders Gobbled Up this Small Fry

Lennar (NYSE: LEN), the nation’s second-largest homebuilder, recently acquired Realstar Homes. It was an under-the-radar deal for a small, regional homebuilder. However, it has important implications, given Realstar’s focus on the fast-growing coastal Carolinas region.

The Millionacres takeaway: Our Matthew DiLallo provides insight in two regards here: 1) looking at Lennar itself as a real estate stock investment, 2) how to look at and think about what homebuilder competitors are doing, especially in the white-hot Sun Belt region.

Could FedEx Staffing Shortages Hurt Retailers This Holiday Season?

FedEx (NYSE: FDX) is already rerouting more than 600,000 packages a day in its Ground network due to a lack of employees. And if hiring doesn’t ramp up soon, retailers may be in for a world of hurt this holiday season.

The Millionacres takeaway: Our Maurie Backman writes that retailers could feel the pain in the form of shipping delays, higher costs, or both. And at a time when so many are desperately trying to recover from the pandemic, that’s not a good thing at all, for those companies or the owners of their commercial real estate.

Also in Today’s News

U.S. Job Growth Falls to Slowest Pace of the Year

U.S. job growth fell to the slowest pace of the year in September, as the delta variant and a persistent shortage of workers restrained the ability of companies to hire, The Wall Street Journal said today [subscription required].

The Millionacres takeaway: The labor shortage was supposed to be easing by now, but it appears to be getting worse. Where this will lead remains to be seen, but real estate investors need to be aware of the potential impacts.

Industrial Rents Climb 9% in Los Angeles

Demand for yard space and trailer parking has been extremely competitive amid congestion at the ports and with holiday shipments on the horizon, Commercial Observer reports today.

The Millionacres takeaway: Industrial real estate, especially for warehousing and logistics, is a sizzling sector, in some places more than others. Industrial REITs are a great way to get aboard, but we pity the Fool who doesn’t check first what the object of that investment actually owns. Here are three to consider.

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