The Daily REITBeat | Wednesday, January 22nd, 2025

"A Sigh of Relief?"

Author

David Auerbach
January 22, 2025

Good Morning!

Futures in the green at the time of this writing as talking heads focus on corporate earnings, dollar movement, treasuries/crypto, and potential tariff policies.

From Bloomberg

  • "US equity futures signaled that the strong Wall Street rally of the past two sessions remains on track, lifted by a slew of robust corporate results and signs that US tariffs on trade partners could be less harsh than feared.

  • Contracts for the tech-heavy Nasdaq 100 rose about 0.9%, spurred by premarket gains in Netflix Inc. and Oracle Corp. A gauge of the dollar touched its lowest in a month, signalling relief that President Donald Trump has held back from slapping harsher penalties on trade partners at the outset of his tenure.

  • Fears that the new administration’s protectionist policies would derail global growth and spark US inflation had pushed the dollar to a 13-month high earlier in the month and driven up bond yields. Instead, Trump’s first two days in office have largely been supportive of sentiment, as investors zero in on his pro-business policies. 

  • “There was just relief that as of day one, we didn’t get the tariffs that were expected,” said Corinne Lord, a senior investment specialist at St James Place Management. “The question is to what extent we will get them compared to what he’s promised. There is still a lot of nervousness about what might lie ahead.” 

  • The US president said he was still considering a 10% tariff on all goods from China, following a threat to enact tariffs of as much as 25% on Mexico and Canada by Feb. 1. Yet the only actual action he’s taken so far is the call for a review of trade practices that’s due by April 1, potentially giving China and others almost 10 weeks to avert new levies or address his demands."

In REIT News

  • AHH announced two significant new retail leases at Columbus Village in the Town Center of Virginia Beach district as the Company executed a 14,000 sf lease with a prominent grocer and a 19,000 sf lease with a national sporting goods retailer

  • BDN announced leasing activity across its portfolio as the Company executed 650,000 sf of leasing activity during the 4Q through yesterday which was the highest in 2024 and 18% higher than the fourth quarter of 2023 as the weighted average lease term for the quarter was 9.4 years with total leasing activity for 2024 at 2.2 million sf

  • Yesterday morning, PECO announced with Cohen and Steers Income Opportunities REIT, Inc. that it acquired Oak Grove Shoppes, a 142,000 sf grocery-anchored, open-air shopping center located in Orlando, FL and noted that is the second acquisition in a programmatic joint venture targeting $300 million in equity and owned 80% by CNSREIT and 20% by PECO as the center is 91% leased and is anchored by a 48,000 sf Publix grocery store that opened in 2023 and a recently-opened Marshalls along with an array of tenants in the food, healthcare and childcare industries

  • Yesterday morning, VNO announced that it has become the first major real estate owner, operator and developer to achieve 100 percent LEED® certification across its entire portfolio of inservice buildings as 24.8 million sf across 25 buildings achieving the highest LEED Platinum or Gold ratings

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Welcome your comments and feedback.

Have a great day!

David Auerbach