Retail: Where E-commerce, Engagement and Ethics Collide
Why, when and how consumers shop has shifted drastically over the last 25 years. But the future of physical space is bright, so long as retailers can embrace the changes happening in the increasingly fast, smart, consumer-driven world.
Canada is stepping out of the shadow of its larger neighbor to the south. Although the Canadian market is a fraction the size of the U.S. market—about 10 percent—the country is increasingly popping up on the radar screen for international investors.
10 Must Reads for the CRE Industry Today (April 30, 2014)
The Senate failed to reach consensus on Fannie Mae and Freddie Mac reform. The Wall Street Journal reported that Tishman Speyer bought a development site on the West Side of Manhattan for a new office tower. GameStop announced plans to close up to 130 stores and replace them with new tech stores, according to Chain Store Age. These are all among today’s 10 must reads from around the commercial real estate industry.
Logistics Growth Fueled by Newfound Consumer Confidence
According to a recent Prologis Inc. white paper, “The Growth of Logistics Real Estate,” global net absorption this past year reached 350 million sq. ft., the highest level since the beginning of the global financial crisis, and activity continues to look good this year.
10 Must Reads for the CRE Industry Today (April 29, 2014)
American Realty and NorthStar Realty deny they are in merger talks, contrary to media reports. Starbucks’ CEO wants to open more Starbucks stateside, according to CBS. A real estate Ponzi Scheme in Kansas City robs retirees of their money, reports 41 KSHB Kansas City. These are among today’s 10 must reads for the commercial real estate industry.
Net Lease Investors Veer Off the Conventional Path
Fitness centers, education facilities and specialty medical buildings that emerged as alternative net lease assets a few years ago are showing up in more property portfolios as investors hunt for yield in an increasingly crowded conventional net lease market. Investors may not consider the properties part of the net lease mainstream yet, but the growing momentum suggests that perceptions could soon change: Non-traditional assets are starting to trade with more frequency and, subsequently, capitalization rates have started to compress, say net lease experts.
10 Must Reads for the CRE Industry Today (April 28, 2014)
Starwood Capital head Barry Sternlicht champions investment in single family rental units. Greenberg Traurig real estate fund lawyer Sandy Presant discusses proposed tax changes with Reit.com. A Business Insider article warns against overbuilding rental units for Millennials in hot urban neighborhoods. These are all among today’s must reads for the commercial real estate sector.
10 Must Reads for the CRE Industry Today (April 24, 2014)
Business Insider explains Barclays’ Skyscraper Index, which shows that waves of record-breaking skyscraper construction often coincide with the beginnings of economic downturns. Lamar Advertising became the second company to receive a favorable ruling from the IRS that will allow it to create a billboard REIT. Commercial Observer looks at tech firms’ conceptions of the importance of real estate to their operations. These are all among today’s 10 must reads from around the commercial real estate industry.
Coldwater Creek Bankruptcy Signals Softness in Apparel Sector, but Merchandising is Also To Blame
Industry experts point to several things that led to Coldwater Creek’s demise, including the overall softness in apparel retailing and the strategic missteps the company made regarding its target audience and merchandising.
10 Must Reads for the CRE Industry Today (April 23, 2014)
KKR recognized a five-fold gain on the sale of a stake in a seniors housing business. LinkedIn signed a 450,000-sq.-ft. lease in San Francisco with Tishman Speyer. A ruling that opens the door for CBS Outdoor Americas to launch a billboard REIT bodes well for other potential REIT offerings. GameStop has plans to open between 300 to 400 stores under three brands. Bridgegate has put the fate of the next World Trade Center tower in doubt. These are all among today’s 10 must reads from around the commercial real estate industry.
More Metrics Needed for Medical Office Buildings Sector
Medical office buildings (MOBs) are starting to overtake hospitals as the preferred new property type for health care systems, but real estate market statistics for MOBs are still lumped into the broader health care category, making data and trends hard to obtain.
10 Must Reads for the CRE Industry Today (April 22, 2014)
Citigroup is looking to sell 50 bank branches in California. A Pinnacle Entertainment shareholder is urging the casino operator to spin off its properties into a REIT, Reuters reports. Vanity Fair looks at how the proliferation of technology companies in New York City is raising commercial rents. And OpEdNews explores what’s behind private equity’s interest in foreclosed single-family homes. These are all among today’s must reads from around the commercial real estate industry.
10 Must Reads for the CRE Industry Today (April 21, 2014)
CoStar forced a smaller competitor to give over names of four of its users that CoStar suspects leaked some of its own data to Compstak. N.Y. Stock Exchange executives talked to REIT.com about the state of the REIT IPO pipeline. Seeking Alpha looked at the role of real estate in an activist shareholder fight at Darden Restaurants. Gap will test online ordering within its stores. And Nation’s Restaurant News provided a look at the biggest fast-casual pizza chains. These are all among today’s must reads from around the commercial real estate industry.
Seniors Housing Property Edges Closer to 90% in First Quarter
The average occupancy rate for seniors housing properties edged closer to 90 percent in the first quarter, as the industry’s property types gained absorption due to slow construction and increasing demand.
10 Must Reads for the CRE Industry Today (April 16, 2014)
Deutsche Bank is reportedly marketing the Cosmopolitan Las Vegas Resort with a selling price north of $2 billion. A Seeking Alpha piece argues that student housing REITs should outperform in 2014. Forbes looks at the burgeoning same-day delivery grocery war that’s emerging between Amazon, Google and Walmart. After failing to crack the America’s grocery market, Tesco is giving the U.S. another crack, this time with an apparel play. These are all among today’s 10 must reads for the commercial real estate sector.
Detroit Industrial Market Shows Strong Improvement
Detroit, with about 365 million sq. ft. of industrial space, tied with Atlanta in recording an 80 basis points drop in availability in the first quarter, according to a report by commercial real estate services firm CBRE.
Playing to Win in the Year of the Distribution Center
As consumer demand and manufacturing output increases, industrial real estate investors are seeing huge potential for increased returns. This could spell new real estate decisions and strategies for owners and occupiers alike.
NREI/Marcus & Millichap Investor Sentiment Index Trending at 10-Year High
Investors are once again proving that their confidence in commercial real estate remains steadfast. Exclusive results from the NREI/Marcus & Millichap Investor Sentiment Survey indicate that a majority of investors expect both core fundamentals and property values to continue to rise in the coming year.
10 Must Reads for the CRE Industry Today (April 15, 2014)
Pension fund CalPERS is on the hunt for new money managers and held an event at a Sacramento hotel searching for them. CBL & Associates is planning to sell about one-fourth of its current portfolio. Multifamily rents are rising beyond the point of affordability in many U.S. cities. Pittsburgh is tabbed as a good market for long-term investment in real estate according to London property firm Grosvenor Group. And a group of Walgreen Co. shareholders are urging the drugstore giant to relocate its corporate headquarters to Europe. These are all among today’s 10 must reads for the commercial real estate industry.
10 Must Reads for the CRE Industry Today (April 14, 2014)
U.S. CMBS defaults dropped for the fourth straight year, according to a new report from Fitch Ratings. The Miami Herald profiles the family behind Turnberry Associates, the firm that owns the Aventura Mall and Fontainebleau Miami. Struggles at Family Dollar and other chains have analysts wondering whether dollar stores can only thrive in down economies. DSW is launching a new format called Yellow Box. These are all among today’s 10 must reads from around the commercial real estate industry.
10 Must Reads for the CRE Industry Today (April 11, 2014)
Some Wall Street investors have put money into trailer parks in search of juicy yields. A new study by the RAND Corp. estimates that without an extension of a federal backstop for terrorism insurance, taxpayers could be faced with as much as $7 billion in losses should another large-scale attack take place. An analysis of the San Francisco rental market shows that eviction rates are high near “Google Bus” stops. New York downtown retail landmark J&R Music is shutting its doors after 43 years. Dollar stores are suddenly facing hard times. These are among today’s 10 must reads for the commercial real estate sector.
10 Must Reads for the CRE Industry Today (April 10, 2014)
La Quinta’s shares rise after debuting on the market. Sears is still culling Kmart stores from its portfolio. Marketwatch looks at how real estate ETFs continue to outperform. Chik-fil-A is eyeing aggressive expansion plans, including conquering New York City. The next generation of India’s malls will be larger than their predecessors. These are all among today’s 10 must reads from around the commercial real estate industry.
10 Must Reads for the CRE Industry Today (April 9, 2014)
A panel of REIT execs calls the death of regional malls “greatly exaggerated.” USAA is reportedly shopping a 14-million-sq.-ft. industrial portfolio. Senator Sherrod Brown said that the revamp of Fannie Mae and Freddie Mac won’t go through this year. Google is making inroads into the hotel bookings business. And La Quinta sets its IPO prices. These are all among today’s 10 must reads from around the commercial real estate industry.
About 70 percent of U.S. office markets reported occupancy gains during the first quarter, according to commercial real estate services firm Cassidy Turley. The markets absorbed 12 million sq. ft. collectively from January through March 2014.
10 Must Reads for the CRE Industry Today (April 8, 2014)
Sam Zell went on CNBC this morning to defend carried interest rules. Separately, Zell explained the strategy behind a rent-controlled complex Equity Residential recently purchased in Silicon Valley. A new organization has launched a campaign to chime in on the winding down of Fannie Mae and Freddie Mac. Coldwater Creek is headed for liquidation. These are all among today’s 10 must reads from around the commercial real estate sector.
At a point in the real estate cycle when new development is beginning to make a comeback, it should be comforting for the industry to know it may see a reversal of the long-term trend of opposition to new projects commonly known as NIMBY (Not in My Backyard).
Retail real estate continues to be a vibrant and essential segment of the economy and marketplace. The advent and widespread adoption of e-commerce as a means for obtaining goods has sparked much conversation about the future of the sector and opportunities within it. Even so, while experts agree that the online buying habits of today’s consumer have altered in-person shopping trends, there are few people asserting that e-commerce has eliminated in-person shopping or the need for today’s retailers to exist with physical storefronts.
10 Must Reads for the CRE Industry Today (April 4, 2014)
The Wall Street slice-and-dice machine is back in full force and now commercial real estate CDOs—unseen since 2007—are starting to come back according to Bloomberg. Fairway needs to slow down on its ambitious plans if it’s going to succeed. The NMHC has released its annual rankings of the top 50 multifamily owners and managers. JLL is launching a service modeled after Airbnb for the commercial real estate sector. Microsoft is taking space in San Francisco’s largest tower. These are all among today’s must reads for the commercial real estate sector.
10 Must Reads for the CRE Industry Today (April 3, 2014)
As Colony American Homes prepares to launch a securitization backed by single-family housing rents, investors are demanding higher yields than from a similar offering from Blackstone. A new survey by the Urban Land Institute and EY forecasts that transaction volume will reach a 10-year high by 2016. CoStar is cracking down on illegal use of its software with lawsuits against eight real estate firms. A report from CBRE Group shows that China leads the world in retail development. These are all among today’s 10 must reads from around the commercial real estate industry.
Household sizes have been decreasing while increasing mobility (both length of stay and their transportation as a tenant) yet wanting a central location. These factors all combine to make micro-apartments a viable proposition for new development.
10 Must Reads for the CRE Industry Today (April 2, 2014)
Essex Property Trust and BRE Properties have closed their $16.2 billion merger. Wilbur Ross explains why he sees an opportunity in distressed European real estate. Darden Restaurants has rejected a shareholder proposal to spin off its real estate assets. Neiman Marcus is set to anchor the under-development Hudson Yards project in Manhattan. And KKR is raising money for a second big infrastructure fund. These are all among today’s 10 must reads for the commercial real estate sector.
Buying a Building in New York? A Few Things to Keep in Mind
Many of New York city’s creative tenants prefer the charm of older buildings. As long as owners have made key 21st century upgrades, office space in SoHo or Chelsea, for example, can command rents well above those of many newer office buildings.
The top dog on our list remains CBRE Group Inc. It is the 11th consecutive year that CBRE has lead the industry in total transaction volume. The firm reported a total volume of $233.30 billion in 2013, a 17.7 percent increase over 2012’s figure of $189.80 billion.
If you think change management is just a trend, think again. Whether you hire someone or self-perform, a well-executed change management program is a proven and effective means of promoting real estate strategy and engaging employees in positive ways to help achieve business goals. Avoid it and some disruptive, time-consuming and expensive consequences might result. Here are a few examples to illustrate this point.