My 2 bits on the collapse of SVB and its effect on Commercial Real Estate.
Marc Perlof • March 24, 2023
Commercial real estate may not be directly impacted by the bankruptcy of Silicon Valley Bank in and of itself. Nevertheless, it might lead to greater economic unrest and tightened credit standards, which might have an effect on commercial real estate.
Smaller banks may have a liquidity crisis, making it more difficult for them to lend to businesses, including commercial real estate developers and investors, if uneasy investors keep withdrawing money from smaller banks and moving it into safer investments like government bonds. If the demand for commercial real estate declines, this can cause a pause in new development projects or a drop in property values.
Council wants Downtown entertainment zone to be ‘bigger, broader better’ City Council members unanimously directed staff to develop a more ambitious entertainment zone for the Third Street Promenade this week, rejecting a limited pilot program in favor of a permanent, seven-days-a-week allowance for open container alcohol consumption throughout the area.
The Unintended Consequences of Measure ULA We present evidence suggesting that Measure ULA has reduced higher-end real estate transactions in Los Angeles. Since Measure ULA was enacted, the odds of a Los Angeles property selling at a price above its tax threshold have fallen by as much as 50%. In raw terms, this sharp decline occurred across all types of properties, but our strongest evidence suggests it was particularly pronounced for non-single family transactions, which fell by 30-50%.
Sam’s Club in big store remodeling and expansion move Sam’s Club is ramping up its expansion along with its investments in existing stores.
