5% Dividend Yield From Postal Office Real Estate: Postal Realty (NYSE:PSTL)

Postal Realty Trust (PSTL) is an internally managed real estate investment trust (‘REIT’) that owns properties leased to the United States Postal Service (‘USPS’). The fragmented state of USPS properties makes PSTL an unlikely growth story with a hefty 5% dividend yield as a starting point. While the tenant concentration is a potential cause for concern, PSTL appears to be a worthy addition to any dividend growth portfolio.

Postal Office Real Estate

For those who are unfamiliar with postal office real estate, the USPS is a government entity whereas the underlying USPS properties are often privately owned. PSTL owns 666 such properties spread across 47 states, with a heavy concentration everywhere except the West coast:

(2020 Investor Presentation)

While it is tempting to put PSTL in the same league as triple net lease (‘NNN’) operators such as Realty Income (O), there are important distinctions to make. Typical NNN REITs like

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Real Estate Commission Lawsuit Continues. Are Agent Commissions at Risk?

Within the real estate industry, commission is one of the most hotly debated topics. Real estate is one of the few remaining industries that is primarily commission-based. While real estate agent commissions are always negotiable, most commissions tend to fall within the 5% to 6% range. This commission is traditionally split between the buyer’s agent and seller’s agent but paid by the seller out of the sale of the home.

A lawsuit that takes aim at that concept recently received approval to proceed from a federal judge in Illinois, the home of the National Association of Realtors (NAR). Moehrl v. National Association of Realtors et al. is a lawsuit that could become a potential class action in Illinois. It alleges commission splits and multiple listing service (MLS) organizations are inherently anticompetitive.

The suit was filed on behalf of home sellers who paid a commission within the last four years. It

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CBRE highlights 6 markets with rapidly growing life science clusters

  • Life science real estate is hot, with the lab space square footage growing by almost 12% across the US in the last year, according CBRE report detailing growth in the largest biotech clusters. 
  • CBRE’s report highlighted the 13 largest biotech clusters and the top 10 emerging clusters, showing how record amounts of funding from the National Insitutes of Health and venture capital are translating to the real estate markets.
  • Business Insider highlighted 6 clusters that are seeing large amounts of growth, whether they’re established but growing very rapidly, like New York City, or they’re emerging, like Pittsburgh and Houston.
  • Visit Business Insider’s homepage for more stories.

Real estate to house pharmaceutical, biotech, and other medical research professionals is growing at a rapid pace and rents continue to rise, a sign that tenant demand can support the increasing attention on life sciences from institutional investors and developers. 

Lab space has grown

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How Do Real-Estate Agents Show Homes During Covid? With Face Masks, Gloves and Some Ingenuity

Heather T. Roy & Learka Bosnak

Ms. Bosnak: Heather and I have been working together for 15 years and we are very comfortable doing showings together. Then Covid shut everything down. We did a showing and I came back completely frustrated, because we were wearing masks. I felt muzzled. I was constantly running around saying, “I’m smiling under here!” This business is all about rapport, comfort level.

Ms. Roy: We’re like, “We need new skills. We need people to know what we’re thinking, and we also need to know what they’re thinking.” It was almost like we needed a body language expert. I am single and I had met with a couple of matchmakers in L.A. One had her clients meet with a body language expert—Mark Edgar Stephens.

Ms. Bosnak: Heather’s still single, but we love this guy.

Ms. Roy: So we called Mark and told him what we were

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Here’s Why a Rally in Real Estate ETFs is Likely Ahead

The U.S. homebuilding sector is on fire. Thanks to extremely low mortgage rates, home sales are upbeat. But higher demand for home buying as well as lack of labor and land has boosted home prices. The median home sale price rose 15% year over year to $320,625 — the highest on record, according to a new report from the technology-powered real estate brokerage Redfin. The largest increase ever recorded in the Case-Shiller national home price index (which goes back through 1988) was 14.5% in September 2005.

Inside the Details of Rising Home Prices

In the week ending Oct 4, home prices shot up 16% from the same week a year earlier. Since the four-week period ending Jul 5, home prices have grown 6.8%. On the contrary, over that same period in 2018 and 2019, prices dropped an average of 4.4%. During the four-week period ending Oct 4, the median asking

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Your Daily Digest for Real Estate Investing, 10/13/2020

Mortgage woes mount, politics and CRE, Welltower departure rattles, three REITs that could roll, and a commission lawsuit that could roil.

In Today’s News

Late-Stage Delinquencies Spike to Highest Levels Since 1999

CoreLogic (NYSE: CLGX) reported today that despite acceleration in home purchase demand, America’s serious delinquency rate continues to climb, with employment woes much to blame for 120-day delinquencies hitting a 21-year high.

Why it matters: Three months behind on a house payment is on the path to foreclosure unless something turns around, and that may not be the job market for millions of Americans this far behind or potentially on the way there.

What a Democratic Sweep Might Mean for CRE

Read this GlobeSt.com piece for their whole story, but here’s a news nugget: Historically, CRE has performed well under both Democratic and Republican administrations, with average annual returns of 10.3% and 8.1%, respectively, since 1978.

Why it

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Real Estate Commissions Are Too High And Brokerages Can Help

COO & Co-Founder of Radius Agent, a social network and lead conversion engine for Residential Realtors.

If you’ve followed the real estate industry for any amount of time, you’ve probably been involved in the perennial debate about the high agent commissions in the U.S. The issue reached a fevered pitch last year when a lawsuit was brought against the National Association of Realtors, calling commissions the results of collusion. 

A common argument for lowering them claims U.S. commissions are among the highest in the world, but technology means agents don’t find homes for buyers anymore. They just unlock the door and fill out paperwork, and lots of agents don’t even do this full-time.

The common denominator in this debate is always the agent. Critics say they earn too much and do too little. But rarely is the brokerage relationship addressed. Commission splits to the brokerage can often be

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5 Ways Black Real Estate Investors Can Increase Returns As Business Shows Little Progress in Boosting Diversity

Real estate investing has long been a proven approach to helping individuals become their own bosses, build wealth, and achieve financial independence.

In fact, an immense 90% of millionaires reportedly made their fortunes by investing in that asset class.

But little progress has been achieved in the Black real estate investing community, with investors continuing to experience a lack of diversity and overall opportunities afforded to them, a new study by Millionacres shows. A Motley Fool firm, Millionacres is a real estate investment service.

In August, Millionacres surveyed more than 650 people about diversity in the real estate investing world. Five percent of the respondents identified as Black or African American. The real estate world encompasses  many categories, including rental properties, real estate crowdfunding, commercial real estate, real estate stocks, REITs (real estate investment trusts), flipping houses, and second or vacation homes to name a few.

Among the most startling

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Option to Buy in Commercial Real Estate

If a potential buyer is seriously weighing whether or not to move forward with a transaction, and the seller thinks they’ll be able to raise capital and close, the option to buy may come into play. It’s a way for a seller to allow a buyer the necessary time to do their due diligence and secure financing without having to worry that another interested party will come in and muddy the waters.

An option to buy is like an engagement to be married. Enter one only after thinking it through very carefully. You can’t legally get married to more than one person at a time, just like you can’t sell a piece of property to two different entities simultaneously. The option to buy is where you “put a ring on it”; maybe you’re not finalizing a contract, but you’re heading down that road. Nobody gets to that point without thinking

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Where Real Estate’s Investment Giants Stand on Biden and Trump

From left: Joe Biden, Starwood Capital's Barry Sternlicht, Blackstone's Stephen Schwarzman and Donald Trump (Getty; iStock)

From left: Joe Biden, Starwood Capital’s Barry Sternlicht, Blackstone’s Stephen Schwarzman and Donald Trump (Getty; iStock)

Private equity and other major investment firms have donated more to Joe Biden than President Donald Trump so far this election cycle, campaign filings show, despite the potential for higher taxes.

And while some companies with a heavy focus on real estate have been keeping hush on their candidate of choice, at least one firm is bucking that trend.

The Blackstone Group, the world’s largest commercial landlord, is by far the largest single contributor to political campaigns among Wall Street firms, a Reuters review of campaign filings found.

That’s largely thanks to Stephen Schwarzman, the global investment behemoth’s chairman and CEO. He’s increased his political donations more than five-fold since 2016’s general election — spending $27 million this election cycle alone on donations to campaigns including Trump’s.

Others at Blackstone, which has $564 billion

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