Commercial Real Estate News for Wednesday, November 23

Five articles for you highlighting big topics in the commercial real estate market today.

Enjoy your Thanksgiving!

Rising Rates Threaten Global Property Investments

Very low rates have made commercial real estate boom around the world over the last few years. This may be changing as investors dump their government bonds in Europe, Asia and the US.

How Looming Tax Reforms Might Impact CRE Industry

The first major tax reform since 1986 will likely have a big on commercial real estate. Carried interest, property depreciation and pass-through income are all on the negotiation table.

As Vancouver’s Housing Market Cools, Commercial Property Sales Soar

The residential market in Vancouver, Canada is slowing, but while it lowers, commercial real estate is skyrocketing. Sales in the first half of 2016 nearly doubled the first half sales of 2015.

Growth in Commercial Real Estate to Boost the Global Fire Extinguishers Market Through 2020, Says Technavio

In an interesting correlation between different business sectors, the growth of the commercial real estate industry is positively influencing the sales of fire extinguishers. According to Technavio, the industry is expected to grow by 7% over the next few years.

Mixing It Up: Getting Mixed-Use Retail Right

Mixed-use retail buildings are a complex environment to navigate between tenants and maximizing revenue. One of the greatest skills a manager can possess with these property types is fantastic communication.

Commercial Real Estate News for Tuesday, November 22

Three articles on commercial real estate to help you succeed today.

CRE Industry Weighs Impact of CA Supreme Court Decision In ‘Dual Agency’ Case

A case with a potentially huge impact on commercial real estate has been given a verdict in the California Supreme Court. A breakdown can be found in the article, but the case explored a real estate brokerage firm’s fiduciary responsibility when its agents or brokers are involved in both sides of a sale.

Get in the Mood for Retail Forecasting Follies

A cynical look at the expected retail spending going into the holiday months. The National Retail Federation predicts a 3.6 percent to $655.8 billion this year, but Bloomberg isn’t buying it.

HSA Commercial Acquires, Plans to Revamp Shopping Center

HSA Commercial Real Estate and Innovative Capital Advisors have formed a partnership to purchase and upgrade the Brookfield Fashion Center in Chicago. The  217,346-square-foot shopping center is 97 percent leased and hosts high-quality tenants like Stein Mart, Jo-Ann Fabrics, and Pier 1 Imports.

Commercial Real Estate News for Monday, November 21

Good morning! This Monday should be a little easier to get through thanks to the short Thanksgiving week. Enjoy these 5 articles on the state of the commercial real estate market.

KKR Capitalizes Private Non-Traded REIT with $838 Million

Private equity firm KKR is moving $838 million into its KKR Real Estate Finance Trust Inc., a non-traded mortgage REIT focused on commercial real estate debt. In addition to this in-flowing cash, KREF has $1 billion of existing borrowing capacity.

Swiss Investment Firm Raising Funds to Expand US Multifamily Holdings

Varia US Properties, a Swiss investment firm, has acquired 39 U.S. multifamily properties since the end of last year. The company plans to acquire more money for investments through a public offering on the Swiss Stock Exchange.

Trump Said to Discuss Treasury Post with Blackstone’s Gray

Jon Gray, Global Head of Real Estate at Blackstone, is being considered by President-elect Trump for the position of Treasury secretary. The two met on Sunday to discuss issues like the economy, global capital markets and the world financial situation.

Demand for Student Housing Looks Strong for 2017

Based off the most recent data from research firm Axiometrics, firms plan on building nearly 46,000 beds of new, purpose-built student housing for the Fall 2017 school year. “It would be pretty hard to overbuild in most markets, there is such strong demand,” says Nat Kunes, vice president of product management at AppFolio Inc. “In most markets you could double the amount and not overbuild.”

Commercial Mortgages: What Could a Trump Presidency Mean for the Real Estate Industry?

Another day, another article speculating on Trump’s effects on the commercial real estate industry. Investors hope the President-elect rolls back the Dodd-Frank regulations that have made lenders less competitive. The most disruptive area is likely to be increasing interest rates, which have already risen since Election Day.

Commercial Real Estate News for Friday, November 18

Find out what’s happening in commercial real estate today with these 4 articles.

Britain’s Nationwide to Close Commercial Real Estate Lending Business

The Brexit has claimed another victim in the form of  Britain’s Nationwide Building Society’s Commercial Real Estate business. The CRE business accounted for about 1% of its assets. “Since the EU referendum expectations for commercial property values have moderated and most forecasts are predicting modest falls,” Nationwide said.

Here are the Top Multifamily Commercial Real Estate Developers in Phoenix

A collection of the top multi-family commercial real estate developers in Phoenix. Notable mentions include Lennar Multifamily Communities and Mark Taylor Inc.

FIRE Development Group Continues Streak of Tax Credit Awards with $45M Allocation

For the fourth year in a row, the First-Ring Industrial Redevelopment Enterprise Inc. organization won a federal New Markets Tax Credits award worth $45 million in tax credits. The award is handed out to job creating projects.

How Apartment Building Owners Can Strike a Balance Between Pet Owners and Non-Animal Lovers

A handy guide to keeping all your tenants happy when it comes to animals. NREI suggests balancing canine washing stations and dog parks with free pet waste bags and strict animal noise rules.

 

Commercial Real Estate News for Thursday, November 17

Charge into your afternoon with these 4 articles on commercial real estate and investments.

34 of the Country’s Top Commercial Real Estate Sales of 2016

A round-up of some of the nation’s largest commercial real estate deals in 2016. The list includes Seattle’s Safeco Plaza ($387 million), Denver’s Breakers Resort ($350 million) and Westwood’s University Station ($206 million.)

Commercial Real Estate Faces Strong Headwinds

More frequent mortgage delinquency and higher borrowing costs may slow down the commercial real estate market in the coming years. These warning signs are already occurring and show little sign of slowing down.

Apartment Demand, Rental Rates Hold Steady Against Unprecedented Supply in Healthy-But-Slowing Apartment Market

Multi-family units continue to be a smart investment. Demands remains strong and the supply is set to grow even more.

Hines REIT Sells Tallest Building In Sacramento for $175.5 Million

The 429 ft. Wells Fargo Center was acquired by Starwood Capital Group for $175.5 million. This is the largest commercial real estate sale in Sacramento since Hines Interests originally acquired the building nine years ago for $224 million.

Trends in Retail that Center Owners Will Want to Know

With the continued evolution of eCommerce putting a dent in the bottom line of brick and mortar retail stores, from AAA national brands to local mom and pop shops, it’s tougher than ever for owners of retail centers, malls, villages, and the like to know what to include in their tenant portfolio to maximize effectiveness and ROI.

As a shopping center owner, you know that your property is very much a different beast than buildings in a downtown area or small local business strips. Yours is a space pre-built to drive demand due to factors like the interplay of tenants, available on-site parking, and overall convenience to retail customers.

As the shopping center has emerged and evolved as a cornerstone of retail commerce, complex patterns are emerging regarding types, naming conventions, societal preferences (in many places the “mall” is becoming a dinosaur), and even ecological impact—all of which influence consumer preferences and therefore the profitability of your tenants. Here are some of the top trends in retail happening this year:

What’s in a Name?

Marketing to recruit tenants, shoppers, and community support has lead to naming conventions that have in some ways become confusing or non-standardized. Identities such as “commons”, “market”, “village”, and even “mall” all mean different things to different interested parties. Considerations about where naming trends are going, or rebranding your space are both viable ways to keep your location competitive moving forward.   

Quora has a few brief articles if you’re looking for inspiration, here, here, and here.  

Pop-Up Retail

pop-up shop Trends in retail

One of the emerging trends in retail is the “pop-up” or flash retail phenomenon. This is the trend of opening short term sales spaces.

In the past, retail center owners were less likely to allow a pop-up operator into their space, preferring long term leases and stability. Convention was that a large anchor tenant was ideal, supported by long term smaller chains or local vendors.

Pop-up vendors were first seen in the early 90’s in major urban areas such as New York City, Los Angeles, and Tokyo. Pop-up stores allow for creativity and risk taking that consumers respond well to.

As defined by thestorefront.com, a pop-up shop has a few features worth considering as a part of your tenant portfolio:

Term: Typically 1 day to 3 months

Location: High traffic areas (city centers, malls)

Price: Significantly lower than a traditional store, lease paid up front

Use: Sell products, allow a more diverse presence during holidays or events, supporting the launch new products, generate awareness (PR stunts and publicity), allow a retailer to move specialty or excess inventory, test a new idea or location, and for you (the center owner) increase the ‘cool’ factor of your property.

Pop-up shops are a great way to keep consumers interested in your space through novelty factor alone, and support your “anchor tenants” by drawing in new and diverse shoppers who may not have been exposed to the space previously.

And don’t think the Pop-up store is only a gimmick—Business Insider reports that Amazon is planning to open a slew of pop-up retail locations across the US in the next year.

Medical Facilities

massage Trends in retail

Modern life is, if anything, focused on convenience and maximizing time efficiency. Many medical outlets—physical therapists, massage, spa, general clinics, urgent care centers (for both people and pets), dentists, chiropractors, and alternative medical practitioners (Chinese, Ayurvedic, Reiki, etc) can now be found in retail centers, side by side with conventional stores.

As reported by biznow.com, Americans are now spending more than ever on healthcare, want healthcare that is easily accessible and fast, and landlords are looking for creditworthy tenants to fill the space left vacant by failing traditional retailers. This focus on healthcare is pushing one of the current trends in retail. 

It is easy to imagine a couple on a shopping outing, stopping in for a massage or an acupuncture treatment, extending their stay in your shopping center and making it an overall more enjoyable experience.

It could even be argued that you, as the owner are now more responsible than ever for creating an engaging and multi-faced experience for consumers than ever before.

The sorts of medical-related occupants that are acceptable to consumers has changed significantly over the last 10 years, wellness, rehab, or medical locations now offer a slew of possibilities for you to consider.

Final Thoughts

As you and your property management team consider how best to manage your portfolio, be sure that you are thinking “outside the box” as new opportunities and consumer expectations abound. Your retail center can evolve from the traditional, long-lease-all-mercantile, to more of a service based, exciting, and consumer-centric location.

Follow these trends in retail for successful investments. Build space for the community to spend time, and they will.

Commercial Real Estate News for Wednesday, November 2

Good morning! We hope the weather is nicer where you are than where we are. Below you’ll find six articles on commercial real estate covering everything from specific city investment news to the impact of the presidential election on property types.

Black Lion Scoops up North Palm Beach Mixed-Use Center for $14M

Chesser Group, a California based real estate conglomerate, has sold their Crystal Tree property in Palm Beach to Black Lion Investment Group for $14 million. The space was attractive to the investors due to the high numbers of surrounding luxury condos but relative lack of retail property.

Done Deal: Warehouses, Apartments, Retail Sold for Almost $6 Million

A list of recent commercial real estate deals in the Memphis area. Useful information for any brokers or investors interested in Southwest Tennessee.

Influx of Foreign Dollars Continues to Power Commercial Real Estate

A good interview Greg Warsek, senior vice president and senior regional manager with the Chicago office of Associated Bank, where he discusses foreign investment money and its movement away from American coastlines and toward the center.

Commercial Real Estate Market On Strong Run

Andy Cates, president and CEO of brokerage services for Colliers International in Memphis, is optimistic about the city’s commercial real estate growth in 2017. Cates bases his enthusiasm on the heavy amount of construction in 2016 and the land capacity for even more projects as demand goes up.

“Problem” Loans Create a Drag on CMBS Refinancing

While the number of CMBS loan maturities has been shrinking, research groups have estimated around $103 billion worth of loans still need refinancing. Office and retail spaces are facing the most pressure from this development.

How U.S. Election May Impact Factories in Mexico

Border cities are seeing a slowdown in office and industrial space leasing as the possibility of a Trump presidency looms large.

Commercial Real Estate News for Friday, October 14

Two articles to help you get ahead today.

Private Investors Double Down on Net Lease Assets as Institutional Buyers Step Back

Private investors are beginning to compete with institutional buyers for single-tenant net lease assets. The property type is bouncing back after capital markets tightened earlier this year.

Declines in Nursing Home Occupancy Levels Indicate Changes Afoot in Seniors Housing

Occupancy levels in nursing homes have fallen to a five year low, a trend that may cause interested investors to pause. Changes in Medicaid and Medicare are shortening patient stays and contributing to the low occupancy.