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10 Must Reads for the CRE Industry Today (May 22, 2018)

The House is expected to pass deregulation of Dodd-Frank provisions, the Wall Street Journal reports. U.S. News & World Report looks at investment in industrial real estate. These are among today’s must reads from around the commercial real estate industry.

  1. Bank Deregulatory Bill to Become Law as Soon as This Week “The House is expected Tuesday to vote on Senate-approved legislation aimed at easing the post-crisis financial rulebook. The bill represents the most significant bipartisan effort to relieve small and regional lenders from a number of restrictions tied to the 2010 Dodd-Frank financial-overhaul law.” (Wall Street Journal, subscription required)
  2. How to Invest in Industrial Real Estate “Move over apartment buildings: Warehouses are becoming sexier than ever to real estate investors. Though industrial real estate was hit hard during the recession and lagged in its recovery, it is now improving steadily and is perhaps the most desirable commercial real estate class, says Nick Vertucci, a real estate investor and CEO of The Nick Vertucci Cos. in Irvine, California.” (U.S. News & World Report)
  3. Bitcoin Won’t Encourage Cryptocurrency for Real Estate, but Cryptoeconomics Will “As Bitcoin enters the mainstream economy, a number of homebuyers and sellers are starting to use the cryptocurrency to conduct real estate transactions. Last year, Southeby’s International Realty sold one of the first single-family homes in Austin, Texas using Bitcoin. The Austin home was sold when Bitcoin prices were $3,429 in September 2017. In addition to these transactions, other residential real estate properties are being listed for Bitcoin.” (Forbes)
  4. Kroger CEO: Even in the Age of Amazon, Physical Stores Will Still Be Important “Kroger's clever new deal with U.K. digital grocer Ocado may not be its last transaction. ‘For us, companies of interest would be ones that have our values, companies that would be in new real estate-we would always sit down and look at it, but that doesn't mean something is going to happen,’ Kroger CEO Rodney McMullen told TheStreet. ‘We will continue to look aggressively at partnerships when it accelerates the journey we are on and we believe someone else could do it better than us,’ said McMullen, who started as a store clerk in 1978.” (The Street)
  5. Hy-Vee CEO Talks Expansion of Wahlburgers and Grocery Stores “After months of anticipation, Hy-Vee opens its first Wahlburgers restaurant on Tuesday, and another 25 will quickly follow over the next three years as the grocery store chain revs up its franchise partnership with Wahlberg brothers Mark, Donnie and Paul. Sitting in one of the booths in the new restaurant in Mall of America last week, Hy-Vee chief executive Randy Edeker said all 26 restaurants are expected to be open by the end of 2021 in the eight Midwestern states where it has Hy-Vee stores, including four in the Twin Cities.” (Star Tribune)
  6. Family Offices Need Real Estate Due Diligence That’s Real “Direct investing by family offices in real estate is something that you hear about a lot. But the question that hardly ever comes up is, ‘Are we really investing in a solid real estate deal?’ Of course, this is not true for all families, especially if real estate is the industry in which they created their wealth. But for families whose money was made in steel, fashion or chemicals, for instance, who then exited after years of building a business and then selling it, the due diligence hurdle often is a high one.” (Forbes)
  7. Doggie Daycares Are One Business That’s Actually Thriving “The next big real estate deals are going to the dogs. With nearly half a million canines in New York City — and the canine services industry totaling an estimated $70 billion market in the United States — dogs are big business. The American Kennel Club (AKC) is seizing the moment locally with an eye on what busy New Yorkers need most: doggie daycare.” (New York Post)
  8. The Long View: Why Real Estate Tech Won’t Kill the Middleman “Revolutions tend to promise one thing and deliver another. Think of the Jacobins paving the way for Napoleon, the Soviets toppling one autocracy only to ultimately replace it with another, or anti-corruption crusader Hugo Chavez building an empire of graft in Venezuela. Turns out this maxim also applies to real estate technology.” (The Real Deal)
  9. Manhattan Retail Rents Decline in 9 Out of 17 Major Corridors “A major theme in the transition of the Manhattan retail landscape, as emphasized by REBNY's Manhattan Retail Report Advisory Group, has been the shift from retail brands occupying numerous locations around the city to fewer, but more impactful locations. These physical spaces are designed as an extension of retailers' brand marketing to create a sense of "belonging" and shareable moments for the customer. Retailers have employed the use of artificial intelligence, robotics, and data mining to offer a personalized shopping experience that provides brand empathy and is also social media friendly.” (World Property Journal)
  10. Hilton Divestment Indicates Blackstone’s Patience “Bold moves, big money and a substantial dose of patience have added up to a huge payday for Blackstone Group. The company prepares to make its final divestment from Hilton Worldwide, more than a decade after taking the company private. Blackstone announced that it will sell 15.8 million shares, its last stake in Hilton Worldwide Holdings, for an estimated $1.3 billion. The sale, according to Bloomberg, will bring Blackstone’s profits from its investment in Hilton to about $14 billion.” (Commercial Property Executive)
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