#1 Not Your Parents’ Movie Theatre
The internet has forced nearly every mall-based retailer to re-tool. The latest industry is movie theatres. Theater attendance last year fell to its lowest level since 1995, a crisis propelled by the rise of streaming. Exhibitors are tearing out seats and replacing them with luxury recliners, fitting fewer overall seats, but creating steadier revenue at higher prices. They are adding specialty drinks, dining options, and sophisticated sound and screens that most home theatres couldn’t replicate.
#2 Rising Seas Impact Miami Home Market
Recent studies show that single-family homes in Miami-Dade County are rising in value more slowly near sea level than at higher elevations. Low elevation properties are becoming Miami’s laggards.
#3 Home “Not So” Sweet Home
Two of the largest home rental giants are planning to merge providing one of the most evident signs that Wall Street is betting on home ownership rates, currently at 50-year lows, will remain low and that a growing number of U.S families will rent.
#4 Property Tax Cuts Strain Local Governments.
Retail sales and occupancy rates are falling in many parts of the country due partly to the oversupply of stores and competition with on-line retailers. Mall vacancies are at a six-year low despite the strong broader economy. That has meant lower property values, lower tax collections and in some cases less to pay teachers and firefighters. Property taxes are the single biggest expense and keeping them low helps keep retail property owners in business because they can negotiate lower rents and remain in business. Some landlords appealing assessments point to the declining amount of sales taxes being generated by their stores. Others cite market conditions in the region and sale prices of vacated stores and malls.
#5 You Can’t Always Get What You Want
There is a tremendous mismatch between the places where people want to live and the places where it’s easiest to build. Suburbanization may have run its course. What used to be a 30 minute commute in the 70’s is now several times that.