CDC eviction moratorium draws lawsuit, surge in short-term apartment rentals, Lululemon expanding retail footprint, landlords and a future COVID-19 vaccine, and more trouble for Rich Uncles.
In Today’s News
The National Apartment Association has joined the New Civil Liberties Alliance in a lawsuit challenging the U.S. Centers for Disease Control and Prevention’s national eviction moratorium.
Why it matters: Read the whole GlobeSt.com piece for some insight on how rent collection woes are affecting different types of properties and owners. The end to the pandemic is not in sight, and this piece of economic fallout isn’t either.
A new survey from the National Apartment Association found that nearly 35% of landlords said some of their tenants are opting for short-term or month-to-month leases instead of long-term stays.
Why it matters: If this trend grows, more and more property owners and managers will have to decide between short-term gain and what could be long-term pain if they have to wait too long for someone willing to commit to sticking around a year at a time.
Bloomberg reports that Lululemon (NASDAQ: LULU) says it’s still profitable despite the pandemic’s carnage on brick-and-mortar retail and that the upscale Canadian retailer is looking to expand its current fleet of 370 stores in North America.
Why it matters: It’s no stretch to say this purveyor of yoga and other trendy duds has a loyal following, and CRE operators with open space might consider pursuing an outlet in an empty space of their own.
Today on Millionacres
When a COVID-19 vaccine does arrive, will landlords be able to require them of tenants? After all, it would seem like a matter of public safety, which property owners and managers are typically held responsible for as a result of taking money for providing the space.
Why it matters: There’s no vaccine yet, but when there is, this will be a question every landlord big and small may find themselves facing. Might as well start thinking about it now.
According to Los Angeles County court records, Rich Uncles is being sued by a former employee, claiming retaliation for blowing the whistle on the company’s actions that were in violation of securities regulations, resulting in a substantial fine in 2019.
Why it matters: Investors who were in the crowd that sourced Rich Uncles and its two real estate investment trusts (REITs) — one now facing liquidation — should probably follow the various bouncing balls let loose by the plunging fortunes of this online investing platform. Only pennies on the dollar are likely, it seems, but at least that investment might make some cents.
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