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Real Estate

Malls. In the third quarter of 2020, vacancies in malls hit their highest rate in 20 years rising from 0.3% to 10.1%, and the average mall asking rent dropped 0.7% in Q3 and 0.6% over the course of the year.

Throughout this year we have been covering the decline of the mall, but recent bankruptcies and shutdowns are pushing the crisis further. Movie theaters and gyms are increasingly unable to make rent payments, and for malls, this is a massive blow for hopes of a timely recovery.

“Retail has gone through a radical transformation the the last five years… You are getting a knock-on effect as lessees move out. A fundamental reset is what you should be thinking about.” Read the latest on the status of malls.

Written by Michael Sander | Posted in Sortis Opportunity Zone Fund

How rural areas can benefit from the new federal tax program that incentivizes investors to develop in low-income communities.

A product of the Tax Cuts and Jobs Act of December 2017, opportunity zones were created to spur development in disadvantaged communities nationwide by offering investors incentives in the form of capital gains tax breaks.

With the right combination of factors in place, opportunity zones can truly live up to their name by igniting sustainable economic activity that lifts prospects for communities, and offers transformative potential to operating companies and startups.

Opportunity zones are designated low-income communities based on median family incomes or poverty rates. Oregon’s 834 low-income census tracts are largely urban, with 21% in rural areas. The state has 86 designated opportunity zones. While Multnomah County, including downtown Portland, claims 17 of the zones, 31% are in rural areas.

Written by Michael Sander | Posted in Opportunity Zone Tax Incentive