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Commercial Real Estate News for Wednesday, April 19

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Good morning, investors. In today’s commercial real estate news—Sin City keeps growing, a collection of creative office spaces with jaw-dropping price tags, and PetSmart puts a collar around its largest online competitor.

Investors Cash Chips in Las Vegas

Investors in Las Vegas hit the jackpot last year with a confident economy and a demand for rentals. The mining, logging and construction and the leisure and hospitality sectors all saw growth in 2016.

The Five Creative Office Projects That Fetched the Highest Prices

A short gallery of five creative office spaces that fetched “staggering” returns for their investors. In the last several years, the category has gone from a niche, to a formidable player in the commercial real estate market.

PetSmart Offers to Buy the Company that’s Eating its Lunch Online

The transfer from brick-and-mortar to digital continues. PetSmart has acquired Chewy, a pet supply web-only retailer founded in 2011 that’s grown rapidly in the pet sector. The deal is one of the largest in e-commerce history with an alleged price tag of 3.35 billion.

Commercial Real Estate News for Tuesday, April 18

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Good morning, investors. In today’s commercial real estate news—the apartment vacancy rates are hovering around 4.3%, banks are scaling back on their lending, and the time for investing in medical buildings may be over.

Apartment Vacancy Rate “Wobbling,” But Not Rising

People are filling apartments as fast as they’re being built. Vacancy rates hover around 4.3%, similar to what it’s been the last few quarters.

Banks are Suddenly Scaling Back Lending, and Wall Street isn’t Sure What to Make of it

As of last week, banks had not increased lending to commercial and industrial developers for six months, the longest stretch of time since the recession. Consumer loans have also fallen, especially in the auto sector. So far, there’s no consensus on what this all means for the economy.

Past Peak: The Market for MOBs Is Slowing Down Amid Uncertainty

 With the Affordable Care Act sitting indefinitely on the chopping block, many investors are beginning to question whether they should pull out of their medical building investments. While domestic investors move away from MOBs, foreign investors are moving toward senior housing.

 

 

Commercial Real Estate News for Thursday, April 13

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Good morning, investors. In today’s commercial real estate news—restaurants and dollar stores thrive in the face of e-commerce, and Trump’s travel ban hurts luxury hotels.

Top 10 Restaurant Brands for Retail Landlords

The tables have turned since the recession. Restaurants are on the rise after years of decline. Millennials are eating out more than ever before, and a well place restaurant can draw them to struggling shopping centers.

As Some Retailers Stumble, Dollar Stores Continue to Show Strength

Dollar stores are another surprising victor in the current retail wars. Unphased by Amazon’s creep, the purveyors of cheap goods are expanding to new locations and trying new models. Some experts see them as providing a vital prop to a struggling middle class.

Trump’s Travel Ban is Hitting Luxury Hotels the Hardest

Since Trump’s attempted travel ban, 20% less visitors from North Africa and the Middle East have visited the US. While they only make up a small share of luxury hotel guests, they often spend lavishly compared to others. Hotel CEOs are struggling to make up the deficit left by their absence.

Commercial Real Estate News for Wednesday, April 12

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Good morning, investors. In today’s commercial real estate news—construction and real estate lead the S&P 500 on Tuesday, experts say REITs should consider alternate forms of funding, and what lies ahead for the future of Los Angeles.

Real-Estate and Construction Sector Lead S&P 500 Gainers

Shares for companies in the real-estate and construction center lead the S&P 500 on Tuesday. A number of retail REIT executives spoke on the bruised retail market, but encouraged investors to treat malls as individual assets, and to judge them on their quality.

Are REITs Maxing Out on Bank Borrowing?

Speaking of REITs, the trusts have been borrowing heavily from banks as of late, too heavily in the eyes of some experts. Commercial real estate firms are afraid REITs aren’t making full use of the capital available to them, and are harming themselves in the long run by relying on loans from a single source type.

“A Different Los Angeles”: The City Moves to Alter Its Sprawling Image

An in-depth follow-up on Los Angeles since the development-halting bill Measure S failed to pass.  The city now must choose a way forwards—capitalizing on it’s development momentum but not forgetting those left behind to high rents.

 

Commercial Real Estate News for Tuesday, April 11

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Good morning, investors. In today’s real estate news—a simple overview of the retail market’s woes, a scammer couple reveal the flaws with the EB-5 program, and banks aren’t lending to apartment projects like they used to.

What in the World Is Causing the Retail Meltdown of 2017?

An easy-to-read explanation of the current problems facing the retail industry. The problems goes beyond Amazon’s relentless assault on brick-and-mortar.

Inside LA’s Deceptively Simple $50M EB-5 Scam

Victoria and Tat Chan scammed millions of dollars from foreign Chinese investors over the course of several years, transferring money from a fake development to a series of luxury homes for themselves. The situation isn’t as uncommon as it should be, and points to issues with the EB-5 program.

Multifamily Construction Loans Are Harder to Find

Banks are offering smaller loans than they once did to finance the development of multifamily properties. Banks face increased regulations that limit their risk-taking abilities. Financing can be found through other avenues though.

Commercial Real Estate News for Monday, April 10

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Welcome back to the week, investors. In today’s commercial real estate news—a couple reports detailing retail properties and rental rates, as a well as a warning to the Federal Reserve about raising rates.

Take a Look at First Quarter Stats for Retail Real Estate

A short article covering Quantum Real Estate Advisors Inc’s findings regarding retail in the first quarter of 2017. In short, higher vacancies, higher rents, higher cap rates, and lower investment volume.

 Another report, this time from Trulia exploring rental rates around the US. As rents rise drastically in some of America’s largest cities, millenials (and others) may more often consider living with roommates. On average, roomies can save renters 13% or more of their monthly income.

The Fed’s in ‘no man’s land,’ Jim Cramer Warns

After a disappointing jobs report, the Fed should proceed cautiously with their plan to raise interest rates three times this year, warned Jim Cramer. The economy added only about half of the jobs that were expected, but unemployment fell from 4.7% to 4.5%.

Commercial Real Estate News for Monday, April 3

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Welcome to the week, investors! In today’s commercial real estate news—data centers entice investors, US construction rises to heights unseen since 2006, and a mall bets big on Legos.

Data Centers Attracting Private Equity and Public Institutional Investors in 2017

In the first quarter of 2017, data center REITs have gained 10.41 percent on the FTSE NAREIT All Equity REITs Index. Likewise, public institution investors have gained interest.

U.S. Construction Spending Rises to Near 11-year High

US construction spending has increased to $1.9 trillion, the highest it’s been since 2006. The articles lays out further details covering which sectors contributed the most to growth.

Can Legos Save Plymouth Meeting Mall?

 As mall owners struggle to entice shoppers to their stores, Plymouth Meeting Mall is betting big with a LegoLand addition. As customers increasingly turn to e-commerce, retail owners are looking to build experience for shoppers.

Commercial Real Estate News for Friday, Mar. 31

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Happy Friday, investors! In today’s commercial real estate news, E-commerce may be making brick-and-mortar relevant again (bear with us on this), the apartment sector needs to blow off a little steam, and student housing is booming.

How E-commerce Is Making Stores Relevant Again

Traditional brick-and-mortar retailers may be able to fight off Amazon by using their local branches as arms against the online giant. Many customers order online then pick up their shipments from the physical stores, shaving time off delivery and allowing retailers the chance to sell them on more.

America is Building More Apartments Than Renters Want

Cool down on apartment investing, the market for them may be overheating a bit. Apartment occupancy slipped from 95.1% last year to 94.5% in the first quarter of this year. An increasingly healthy housing market may mean people are less interested in renting and more interesting in buying.

Economy Watch: Demand for Student Housing Stays Strong

While apartments slip, student housing remains strong.  Millennials are attending college in record numbers, increasing demand for high-quality roofs over their heads.

Commercial Real Estate News for Thursday, Mar. 30

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Good morning, investors. In today’s commercial real estate news—Morgan Stanley predicts 2017 as the end of the bull market, a slim workforce slows down home building, and discover why investors are moving their money into emerging markets.

Morgan Stanley: The Bull Market in Commercial Real Estate is About to End

Analysts for Morgan Stanley expect 2017 to be the peak of this commercial real state cycle. They expect housing demand to surge in the coming years though as 70 million people enter the house-buying phase of their lives.

Homebuilders Struggle to Fill Jobs ‘Americans Don’t Want’

A slim workforce is slowing down home-building around the country. The average age of a construction worker is now 42, and more young men are attending college. The issue is compounded by the crackdown on immigrants, who make up as much as 25% of the construction workforce.

Five Reasons Why Investors Are Moving Capital Into Commercial Real Estate in Emerging Markets

Investors around the world are pouring money into the commercial real estate markets of emerging countries. This article explores some of the main drivers behind their motivation.

Commercial Real Estate News for Wednesday, Mar. 29

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Good morning investors, in today’s commercial real estate news—the Vice Chairman of the Fed foresees two more rate hikes this year, retailers keep a wary eye on tourism numbers, and a small town debate on creative affordable housing.

Fed’s Fischer Says He Sees Two More Rate Hikes in 2017

Federal Reserve Vice Chairman Stanley Fischer said two more interest rate hikes this year will likely be “about right.” Fischer said the Fed is watching the Trump administration and will respond to whatever their economic plan is.

Retailers Could Get Slammed by Slowing International Tourism

The Trump administration’s attempts at a travel ban may be hurting more than just immigrants. Around the world, the US is becoming seen as inhospitable to foreign travelers. The slowing international tourism may negatively impact retailers who rely on the money rich travelers bring with them.

To Address Affordable Housing Shortage, Restoring 19th Century Homes

Wonderful piece from the New York Times covering unique solutions to affordable housing and the conflicts that can arise from them. Apalachicola, NY is well known for its historic houses, should they be renovated to provide lower income families with homes? The debate is causing a stir in the small town.