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10 Must Reads for the CRE Industry Today (June 9, 2017)

CalSTRS is searching for a new real estate consultant, reports Pensions & Investments. MarketWatch argues that Midwest markets will be the best draw for retiring Baby Boomers. These are among today’s must reads from around the commercial real estate industry.

  1. How House Bill Would Dismantle an Array of Dodd-Frank Reforms “If enacted, the Financial Choice Act will roll back major portions of the Dodd-Frank Act of 2010 and change significant aspects of the bank oversight process. It was outlined a year ago by Representative Jeb Hensarling of Texas, the Republican chairman of the House Financial Services Committee. Here are some of the most significant changes in the nearly 600-page Financial Choice Act.” (The New York Times)
  2. CalSTRS to Launch Real Estate Consultant Search “CalSTRS' investment committee approved issuing an RFP for a real estate consultant, confirmed spokesman Ricardo Duran in an email. The $206.5 billion pension fund's current contract with Townsend Group expires on Feb. 28. The firm is eligible to rebid. The consultant will be charged with providing ‘expertise and advice on investment policies, practices and strategies related to the (real estate) program, as well as keep the investment committee apprised of trends and conditions in the real estate industry,’ the RFP says.” (Pensions & Investments)
  3. This Is Why the Midwest Will be the Hottest Retirement Destination “See ya, Florida. Nebraska is the most attractive state for retirees, according to a recent report from LPL Financial, which looked at each U.S. state as a retirement destination. The Retirement Environment Index uses a combination of public data related to health, finance, housing, employment, education, community and quality of life indicators to evaluate and rank states based on their attractiveness to the pre-retiree cohort. The index is weighted to prioritize finances over other indicators. Financial stability and improved quality of life indicators helped push the cornhusker state to the top spot.” (MarketWatch)
  4. The 16 Most Expensive Skyscrapers Built in the Last 30 Years “Over the last few decades, skyscrapers' heights — and thus their costs — have continued to climb. Business Insider rounded up the most expensive towers built in the last 30 years, defining a skyscraper as a building that measures at least 500 feet tall. As you will see, not all skyscrapers feature a slender design. Check them out below, in order from lowest to highest construction cost.” (Business Insider)
  5. How to Developer a Localized Real Estate Investment Strategy “The economy, the prospects, and therefore the real estate situation can be very different from market to market. San Francisco is different from Chicago, and they're not Peoria. Investments in rental properties can be successful in ANY market, but some strategies have better odds for success if you understand the current situation of YOUR market. There are three things you need to think about when considering a rental. What's the situation with rents and home prices right now? What is the economic situation? And what will happen with rents and home prices in the future?” (Forbes)
  6. Mathrani Says GGP’s “Pens Are Down” on New Deals “General Growth Properties CEO Sandeep Mathrani isn’t too concerned with the vacancy rate on Fifth Avenue – mostly because he isn’t planning on buying anything there. During a panel at NAREIT’s annual REIT Week conference Wednesday, Mathrani pointed out that GGP just leased up its last vacancy on the prime shopping strip: a tiny, 896-square-foot space at 685 Fifth Avenue to the watchmaker Tag Heuer.” (The Real Deal)
  7. Trump’s Paris Decision Might Hurt His Own Investments “President Donald Trump’s decision to pull out of the Paris climate agreement could accelerate damage to his family’s real estate empire in the coming decades, especially his properties that lie just feet from the encroaching sea in low-lying South Florida. The president’s Mar-a-Lago estate, the soaring apartment towers bearing his name on Miami-area beaches and his Doral golf course are all threatened by rising seas, according to projections from the National Oceanic and Atmospheric Administration and the South Florida Regional Climate Change Compact.” (York Dispatch)
  8. What Does the Investment Sales Slump Mean for Lenders? “If the sales market of recent years has felt like a nonstop party, the cranky neighbors downstairs just called the cops. The lights are back on and the volume is down. A lot. In the first quarter of 2017, U.S. investment sales volume decreased 26 percent year-over-year, according to numbers from brokerage Cushman & Wakefield. The decline was even more precipitous in the New York metro area, where investment sales fell 42 percent. The cause? Take your pick: overbuilding concerns, a looming interest rate hike, rents that appear in some markets to have reached the outer limits of sustainability.” (Commercial Observer)
  9. Thinking of Buying Rental Property? Here Are Five Things You Should Know “It seems like such a difficult way to make a dollar. You have to buy a property, fix it up, figure out what rent to charge, find renters, deal with repairs, upkeep, late payments, complaints from the tenants, complaints from the neighbors, citations from the town, and also have a lawyer on standby in case an eviction is necessary. Then start again every time you get a new tenant. On the other hand, in most cases you'll receive monthly payments like clockwork, never hear a peep from your tenants, easily find new ones when necessary, and get a return on your investment that's protected from interest rates and inflation.” (Forbes)
  10. Selling Stuff Is No Longer the Point of Retail Stores “It is a weekday afternoon in May, and a dozen young women are dabbing themselves with expensive creams, serums, and balms in the Glossier showroom, a tiny, light-filled beauty sanctuary on the sixth floor of an office building in downtown Manhattan. Even the cosmetics startup’s employees, whose dewy complexions match their millennial-pink jumpsuits, are participating. Some of the women are here to shop for Boy Brow eyebrow gel and Balm Dotcom salve, but that’s not really the point of the space.” (Fortune)
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