Rents Set to Be Last Domino to Fall in Global Inflation Battle
Surging rents across many developed economies are proving to be a stubborn hurdle for central banks as they struggle to nail down inflation once and for all this tightening cycle.
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Surging rents across many developed economies are proving to be a stubborn hurdle for central banks as they struggle to nail down inflation once and for all this tightening cycle.
Two of the world’s biggest property investors are split on the current state of the US commercial real estate cycle.
Rents in most major US metropolitan areas have risen some 1.5 times faster than wages in the last four years, according to an analysis by Zillow Group Inc.
Places like New York City and San Francisco still have fewer workers now than they did before the pandemic, which continues to impact their labor market recovery, according to an analysis by the Federal Reserve Bank of New York out Tuesday found.
Guggenheim Partners is talking to lenders, including private credit firms, to gauge their interest in financing the potential $6.6 billion buyout of US department store chain Macy’s Inc. by investment firms Arkhouse Management Co. and Brigade Capital Management.
Feb 11, 2020
Bloomberg News
,(Bloomberg) -- A marijuana dispensary opening near your house? Relax.
In states where marijuana is legal in some form, the majority of respondents saw no change in residential property values near dispensaries, according to a survey by the National Association of Realtors released on Tuesday. With over half of states having legalized the drug for medical use and about a dozen that have legalized recreational use, the report analyzes how the budding industry affects renters, home buyers and sellers.
For landlords, this means new challenges. Cannabis is an all-cash business, and legal cannabis supports about 243,700 full-time-equivalent jobs, according to a report by Leafly. Cannabis dispensaries often pay their employees in cash because most banks shy away from working with the federally illegal industry.
In states where marijuana is only legal for medical purposes, 31% of respondents said most landlords will take cash and not ask where it comes from. On the flip side, 18% of landlords in those same states said most will not take cash from marijuana proceeds for rent at all.
About half of the respondents in states where only prescription marijuana was legal or where both recreational and medical have been legalized since 2016 had no difficulty leasing a property after the growth of cannabis on that property.
While most respondents in states where marijuana had recently been legalized had never tried to sell a house used for growing marijuana, about a quarter of residential members in states that legalized recreational use before 2016 had sold such a property in the past.
The survey was sent through email in September and included responses from 3,673 NAR members.
--With assistance from Katia Dmitrieva and Kristine Owram.
To contact the reporter on this story: Reade Pickert in Washington at epickert@bloomberg.net
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Alister Bull, Ana Monteiro
©2020 Bloomberg L.P.