Happy Friday! In today’s commercial real estate news, commercial real estate is the focus of this year’s economic stress test, Germany becomes Europe’s premiere place to do commercial deals, and landlords are embracing the millennial workplace.
The government is putting commercial lenders feet to the fire in 2017’s economic stress test. This year, banks will be asked to respond as if American unemployment rose to 10% and global economic output shrinks. Special emphasis will be placed on multifamily housing and other commercial real estate that yields long term profits. Some regulators fear the loans given out for these projects put banks at risk.
With nearly $63.5 billion traded in commercial property last year, Germany edged out the UK as the top commercial spot in Europe. The Brexit vote appears to have scared off already wary investors. Britain has been the lead commercial real estate generator for the last decade.
Collaborative, open office spaces are popular as millennials take over the work place. Developers and landlords are focused on creating open spaces where employees and clients are encouraged to hang out. Access to a variety of amenities is also important to tenants.