In a year marked by rising interest rates, a highly contested Presidential election and volatility abroad, which stories did our readers seem to enjoy most? Here’s a rundown of the most popular stories from 2016.
1. Is Cabela’s Acquisition in the Works?
Cabela’s and Bass Pro both specialize in outdoor recreation, but the similarities end there. Their strengths go far beyond fishing, hunting and hiking gear, and the differences between them might actually strengthen a case for consolidation. Despite initial appearances, including reaching customers in the U.S. and Canada, the two retailers operate different business lines and are under different corporate structures.
2. Five Trends Affecting Commercial Real Estate: Looking Ahead to 2017
The U.S. employment gains continue to be strong, with unemployment dropping below 5.0 percent earlier this year, and adding to demand for housing in a variety of forms, for office space, for the retail sector and for industrial/distribution facilities. While many fear the end of the current economic cycle, the fact that the recovery was so protracted leads me to believe that we may have another two years left in the current growth cycle.
3. Sam Zell Sees Limited Investment Opportunities in the Future
Zell noted that he doesn’t see much opportunity in the capital markets today. “Our whole world was built based on the assumption the pie would grow. Nobody has come up with a solution as to where that growth will come from,” Zell replied when asked about his assumptions for the next decade of real estate investment. Although experts at the Sept. 28 conference spoke about a variety of factors impacting investment strategies this year, the main thread was the search for opportunity.
4. Is Pittsburgh the Next Austin?
Though perhaps best known for its prominent role in the steel industry from the late 1800s through the early 1980s, Pittsburgh is beginning to look like an emerging tech hub. With Facebook’s big announcement in January that it would open a research center for its Oculus virtual-reality division in the city, the social media giant became the latest in a string of major tech companies, including Google, Apple and Uber, to open offices in Pittsburgh in the past few years.
5. Best and Worst Apartment Markets in 2016
6. Foreign Buyers of U.S. Real Estate: By the Numbers
7. Self-Storage Cap Rate Compression Slows, But Sector Popularity Continues
8. Should You Sell Everything? Cycles, the Long-Term View and the Next Recession
9. Investors See Opportunity in Value-Add Strategies for Class-B Multifamily Assets
10. Has the Apartment Market Hit the Inflection Point?
Net absorption is expected to continue to decelerate over the next few quarters as those who have extended their leases beyond the typical period finally start to buy homes. At the same time, supply growth should stay strong. While rent growth will disappoint compared to recent years, it should remain positive. A vacancy rate of 6.3 percent seems high relative to the recent past, but it is still in line with the U.S. historic average of 6.0 percent from 2001 through 2010.