In Case You Missed It: New commercial real estate investors and sky-high luxury rents
Jan 28, 2013
Investing in commercial real estate is now possible for lower income brackets, and the luxury rental market is booming. Here’s all the news you might have missed last week:
Commercial Appeal: “New JOBS Act lets small investors dabble in commercial real estate”
The little guy can now try his hand at commercial real estate thanks to a new U.S. securities law. The Jumpstart Our Business Startups (JOBS) Act aims to ease regulations to help startups raise capital. That includes startups that own commercial property. So even non-accredited investors can now invest up to $2,000 or 5% of their income in a new company’s commercial buildings. Read more at The Commercial Appeal.
New York Times: “North Brooklyn Start-Ups Find Office Space is Scarce”
Urban office space is in high demand, and trendy neighborhoods like Williamsburg in Brooklyn, N.Y. are feeling the crunch. Landlords are reluctant to convert potentially profitable residential buildings into offices, and entrepreneurs looking to set up shop in the neighborhood have come up empty handed. Many have turned to shared, or “co-working,” offices instead, but they’re quickly outgrowing these spaces. Learn more about their other options at the New York Times.
Wall Street Journal: “A New Lease on Luxury”
Would you pay $35,000 a month in rent? The new trend in luxury real estate is renting your trophy home instead of buying it. Those in higher income brackets have a number of motivations to rent, including the flexibility to relocate and the desire to free up money for other investments. Whatever the reason, wealthy renters are still willing to pay sky-high prices to maintain their lifestyle. Learn more about luxury rentals at the Wall Street Journal.
LA Times: “California foreclosures drop sharply”
Foreclosure numbers in California took a steep dive in the fourth quarter of 2012. Real estate firm DataQuick released a report showing almost 38% fewer notices of default as the year wrapped up, an encouraging sign for the state’s languishing residential market. Read more on the positive news for California homeowners at the Los Angeles Times.
Author: Raymond T. Cirz