Net Leases’ Meteoric Rise, List of Proptech Startups That Just Got Funded

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More One-Person Companies Today than Before Covid link

• The pandemic led to a surge in new business applications, particularly from individuals, rather than corporations. These businesses tend to be smaller and less likely to employ many workers.

• The Bureau of Labor Statistics (BLS) overestimated employment numbers, as the rise of one-person businesses skews traditional employment models. This could mean slower employment growth in the future.

• Florida has seen a significant number of these new small businesses, reflecting a broader trend of entrepreneurship across various sectors.

Net Leases’ Meteoric Rise in Inventory and What it Means for Cap Rates link

• There's a significant surge in net lease property listings, which is driving an increase in inventory levels. This growth could potentially push cap rates higher as buyers seek better returns.

• The market is seeing a shift with sellers looking to capitalize on the current high valuations before economic conditions change. This is leading to a greater selection of properties but also increasing the risk of cap rate compression.

• Investors should watch closely for how economic indicators and interest rates evolve, as these will heavily influence cap rates and market dynamics moving forward.

Pending Home Sales Fall 5.5% Despite Easing Rates link

• Pending home sales dropped by 5.5% in July, marking an 8.5% year-over-year decline and reaching the second-lowest level in the data's history. This reflects ongoing affordability challenges, despite slightly easing mortgage rates.

• New-home sales rose by 10.6% in July, driven by lower mortgage rates and ample inventory, contrasting with the broader slowdown in pending home sales. Existing-home sales also saw a modest increase.

• Regional differences were notable, with all regions seeing monthly declines in contract signings, but the Northeast experienced a slight annual increase of 2.4%. The South and Midwest faced the steepest annual declines, both over 11%.

Nearly One-Third of All Apartment Renter Households are Starting Out Singles link

• Starting Out Singles make up 27% of all apartment renter households in the U.S., with a median age of 26 and an annual income of $48,000. They lease smaller units and spend the highest proportion of income on rent (27%).

• This group is highly sensitive to rent increases and tends to choose Class B or C properties, often accepting lower online reputation scores. Economic downturns particularly affect this cohort, leading some to couple up or switch to other renter segments.

• Cities like Memphis (45%), Indianapolis (39%), and Greensboro/Winston-Salem (39%) have the highest concentrations of Starting Out Singles. They are less common in expensive coastal markets like San Francisco (5%), Los Angeles (8%), and New York City (10%).

A Snapshot of Industrial, Retail, and Hotel Performance link

• The industrial sector is seeing a slowdown in rent growth and leasing activity, reflecting a more cautious market environment. Some markets like Los Angeles and Dallas are particularly impacted, with vacancy rates slightly increasing.

• Retail continues to adapt to post-pandemic changes with strong performance in well-located, experiential spaces, but weaker results in traditional malls. Markets like Miami and Las Vegas are showing resilience with notable leasing activity.

• Hotels are benefiting from a rebound in travel, particularly in major cities and resort destinations. Occupancy rates have risen in cities like New York and San Francisco, driven by increased tourism and business travel.

List of Proptech Startups That Just Got Funded

• Moxy, builds walls from forestry waste, raised an $11M A round led by At One.

• Evolve, a prefab workflow startup, raised a $6M growth round.

• KingEnergy, a CRE solar energy co, raised a $5M Debt round from Sunstone.

• HouseEazy, an Indian RE marketplace, raised a $7M A round led by Chiratae.

Discounted Sales Are Affecting Office Vacancy and This is How

Where listings are bouncing back — and where they’re not

Top 10 U.S. Metros with Largest Median Down Payments for Home Purchases

Top 10 Cities Near Dallas to Live In

Surprising Self Storage Status

Ranked: Which Countries Gained the Most Wealth Since 2010?

Feels like a steal for $550k

(Do we need a section called stealfeels?!)

Link to the listing

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Vidit

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