🚦The Hard Corner

Presented by Marhilus Ventures 

Happy Friday and welcome to the first edition of The Hard Corner!

We're your go-to source for the latest news in the retail sector of commercial real estate. Every other week, we'll provide you with a concise and insightful roundup of the key stories shaping our market. Enjoy!

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📉 Market Spotlight

*Data from 06/21/2024

🚦The Hard Corner Picks

• Speculating on the Federal Reserve: Economists are split on whether the Fed will lower rates two or three times this year. Bloomberg reports that about 41% predict only two rate cuts.

• Employment Surge: In May, employers created 272,000 jobs, surpassing the expected 180,000 and indicating robust national job growth.

• Nonprofits Capitalize on Market Downturn: Taking advantage of reduced prices, nonprofits are acquiring commercial properties like offices and warehouses.

• Upside-Down: In April, the rise in CRE loan delinquencies was decelerating, even though CRE lending has increased nationwide.

• Precarious Situation: 67 U.S. banks have commercial real estate exposure exceeding 300% of their total equity, with Flagstar Bank (FBC) and Zion Bancorp (ZION) being the most prominent examples.

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🛒 The Retail Corridor

• Retail Strength: Retail sales saw a significant increase, rising by 1.35% in May and 3.03% year-over-year, fueled by higher consumer spending.

• Potential Sale: Dollar Tree (DLTR) is contemplating selling or spinning off Family Dollar, a chain with nearly 8,000 stores across the country.

• Shipping Pressure: Retailers such as Walmart, Target, and Kroger are increasing prices and leveraging advanced technology to enhance profits in response to escalating logistics costs.

• Retail Expansion: Walmart has announced plans to open 150 new stores across the U.S. within the next five years, with at least four of these stores slated for Texas, including three in the Dallas-Fort Worth area.

• Larger Stores: Walmart's new, expanded Neighborhood Market format, featuring 57,000 square feet of selling space, has debuted in Santa Rosa Beach, FL, and Atlanta. This is part of a broader strategy to open or convert over 150 stores within the next five years.

• Competitive Edge: Trader Joe's plans to open 24 new stores nationwide, including 8 in Southern California, maintaining steady growth amid intense competition.

Editor’s Note

We dedicate significant effort into crafting a newsletter that balances information with engagement, but let's be honest – newsletters aren’t our day job. Marhilus Ventures is a diversified investment firm, involved in real estate, finance, and business investments. Our niche? Retail assets, hence "The Hard Corner." Specializing in middle-market value-add properties, both single and multi-tenant, we strategically invest capital through direct equity, joint venture equity, and debt structures across the United States.

Go Check out our investment criteria, if you have anything that may be of interest, shoot it over. We appreciate it!