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10 Must Reads for the CRE Industry Today (December 30, 2016)

10 Must Reads for the CRE Industry Today (December 30, 2016)

 

  1. These 5 Trends Will Shape the Housing Market in 2017 “If the U.S. economy is to hit escape velocity in 2017, you can expect the real estate sector to serve as its rocket fuel. At its most broadly defined, housing can be counted on to compose 15% of GDP. It hasn't done that much heavy lifting lately, however. That's because in the wake of the real estate bubble, lending standards have remained tight, while the cautious builders who survived the crisis have been reluctant to dive headfirst into expanding their operations again. But there are signs that these trends are about to change. As the new year rolls on, we'll fill you in on the health of builders and other key trends to watch below.” (Fortune)
  2. What's ahead for 2017? Headwinds form in real estate boom-bust cycle “Last New Year, the business staff of The Dallas Morning News put together a list of the key topics likely to shape DFW's business landscape. And we did pretty well. We thought oil prices were likely to remain lower but relatively steady throughout the year, and we cast doubt on prevailing predictions that our economy would tank if lower oil prices did, in fact, persist. We were right on all counts. So we've put our minds together again to come up with what we see as the Top 10 economic catalysts for the year ahead. We're rolling out one a day between now and the new year.” (Dallas Morning News)
  3. Dallas real estate investor snaps up business park near D/FW Airport “A Dallas-based real estate investor — Sealy & Co. — has acquired a business park near Dallas/Fort Worth International Airport, which expands its North Texas footprint and further diversifies its growing portfolio. Terms of the acquisition were undisclosed. The 167,797-square-foot business park sits on more than 19 acres on Canyon Drive within the D/FW Airport submarket and includes another 4.15 acres of developable land within a desirable submarket for institutional owners and building tenants. This deal is the latest for the real estate investment firm, which continues to pursue acquisition opportunities for quality properties in strategic locations with credit-worthy tenants, said Scott Sealy Jr., who is the firm's vice president of business development.” (Dallas Business Journal)
  4. After Success in Real Estate, Edward Noble Found Federal Job Frustrating “Like many entrepreneurs, Edward Noble was eager to help sort out the federal government after he had made his name in business. He finally got his chance in the early 1980s—and found the experience deeply frustrating. The son of an Oklahoma oil tycoon, Mr. Noble struck off on his own and in the late 1950s developed the hugely successful Lenox Square shopping mall in Atlanta. He helped found the conservative Heritage Foundation think tank and in 1980 lost a Republican primary bid to represent Oklahoma in the U.S. Senate. When Ronald Reagan became president in 1981, he put Mr. Noble in charge of Synthetic Fuels Corp., which was created during the Carter administration in an effort to reduce dependence on imported oil. His initial advice was that the program should be scrapped. Later, Mr. Noble concluded the corporation was worthwhile, though on a far smaller scale than originally envisioned.” (The Wall Street Journal)
  5. Millennials will buoy retail in ’17, says Consolo “Noted retail real estate expert Faith Hope Consolo, who heads up the retail group at Douglas Elliman Real Estate, has high hopes for 2017, predicting that bigger-spending millennials and recession-proof retailers will keep sales humming on high streets and in malls, if not in department stores. ‘Millennials are going to start shopping differently this coming year,’ Consolo told Chain Store Age. ‘It used to be they’d spend up to 75% of their disposable income on food, but that was a fad. This year, they will start spending more on fitness and fashion.’ More retail leases will be snapped up by hot online sellers expanding their reaches and customer experiences, she said, naming Kyliecosmetics.com and Goodamerican.com as two to watch.” (Chain Store Age)
  6. NYC Garment District Office Property Commands $108M “ATCO Properties & Management has acquired 240-246 West 35th St., an 18-story Class A office building in Manhattan’s Garment District, from the RPW Group for $108 million. ‘It is one of the garment center’s best mid-block office buildings, with great light and air, better elevators and lobbies than other properties, and excellent floor plans,’ Damon Hemmerdinger, ATCO’s co-president, told Commercial Property Executive. ‘While we are happy to own this property at today’s market rents, we believe that this will be the next neighborhood in Manhattan to see significant rent growth.’ Duval & Stachenfeld LLP represented ATCO in the acquisition and financing of the property, which was provided by MetLife.” (Commercial Property Executive)
  7. Mapping the rise of LA's tallest towers in 2016 “For Los Angeles, let's call 2016 the year of the skyscraper. The 73-story Wilshire Grand Center was crowned with a decorative spire that reaches a height of 1,100 feet, making it the tallest building in Los Angeles. It edged out the US Bank Tower for that title, but not to be outdone, the bank tower made news headlines around the world with the opening of a hair-raising glass slide attached to its exterior, dropping from the 70th to the 69th floor—nearly 1,000 feet in the air. Meanwhile, developers, by our count, filed plans over the past 12 months to construct nearly one dozen impressively tall towers. More than half would rise above 40 stories, earning them the designation of ‘skyscraper.’” (Los Angeles Curbed)
  8. Lurie Children's eyes $51 million expansion “Lurie Children's Hospital wants to pony up $51 million to add more beds to its crowded Streeterville facility in the heart of the Mag Mile. Plans call for adding 44 intensive-care beds to an existing 92. The specialty hospital, which treats the sickest children, also wants to add four neonatal intensive-care beds for babies, for a total of 64 NICU beds. The total number of beds would increase to 336. Lurie, which partners with many community hospitals, said it's had a surge of children referred by providers in northeast Illinois in particular and has had to deny transfers, according to an application Lurie filed this month with state regulators.” (Crain’s Chicago Business)
  9. Jacksonville REIT Pays $92M for Orlando Shopping Center “Plaza Venezia, one of Florida’s top shopping destinations, was recently sold in a $92.5 million deal, according to the Orlando Business Journal. The 201,808-square-foot open-air shopping center was purchased by Jacksonville-based Regency Centers Corp. and an unnamed co-investment partner. The seller, TH Real Estate, a division of TIAA Global Asset Management, was represented in the transaction by CBRE’s Casey Rosen and Dennis Carson. Located at 7640 Sand Lake Road, between downtown Orlando, Walt Disney World, Universal Studios and Orlando International Airport, Plaza Venezia encompasses 27 acres of land and five outparcels. The property is currently 95 percent occupied by anchor tenant grocer Publix and restaurants including Bonefish Grill, Eddie V’s Prime Seafood, Rocco’s Tacos and Seasons 52.” (Commercial Property Executive)
  10. Distressed Sales Make Up 7.3 Percent of All Home U.S. Sales “According to CoreLogic, cash sales accounted for 31.7 percent of total U.S. home sales in September 2016, down 1.3 percentage points year over year from September 2015. The cash sales share peaked in January 2011 when cash transactions accounted for 46.6 percent of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in September 2016, the share should hit 25 percent by mid-2019.” (World Property Journal)

 

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