10 Must Reads for the CRE Industry Today (May 3, 2016)

10 Must Reads for the CRE Industry Today (May 3, 2016)

  1. Real Estate ETFs Outperform Even After 7 Straight Years of Gains “The Vanguard REIT Index Fund (VNQ), which tracks the entire U.S. real estate investment trust marketplace, has been gaining and is already ahead by 4.99% year to date. VNQ, the largest U.S.-listed REIT ETF with $30.53 billion in assets, has outperformed the entire U.S. stock market over the past year by almost 5%. And since the start of the year, VNQ has continued by outperforming the broader stock market by 1.91%.” (ThinkAdvisor)
  2. Construction Spending Rises in March “Construction spending rose in March, thanks to a jump in residential building, data released Monday show. The 0.3% gain was below the 0.7% advance forecast in a MarketWatch-compiled economist poll. But February was upwardly revised to show a 1% gain instead of a 0.5% decline. Construction spending edged up in March thanks to a 1.5% gain in residential construction spending. That offset a 0.4% decline in nonresidential spending.” (MarketWatch)
  3. Dick’s Surges After Deutsche Bank Calls it ‘Only Game in Town’ “Dick’s Sporting Goods Inc. shares jumped almost 5 percent after Deutsche Bank AG predicted the company will be the biggest beneficiary of Sports Authority Inc.’s bankruptcy. As Sports Authority moves toward shutting down stores, Dick’s is poised to pick up much of the bankrupt chain’s $2.6 billion in sales, Deutsche Bank analyst Mike Baker said in a report. Sports Authority’s likely demise as a sporting-goods seller makes Dick’s ‘the only game in town,’ he said.” (Bloomberg)
  4. U.S. Commercial Mortgage Origination Volumes Mixed in Q1 “According to the Mortgage Bankers Association's Quarterly Survey of Commercial-Multifamily Mortgage Bankers Originations, first quarter 2016 commercial and multifamily mortgage loan originations overall were essentially flat compared to the same period last year and first quarter originations were thirty-eight percent lower than the fourth quarter of 2015 in line with the seasonality of market.” (World Property Journal)
  5. Survey Says: 34 Percent of Bay Area Residents Are Ready to Leave “Residents of the California's Bay Area are eyeing the exits. Some 34 percent of San Francisco-area residents are considering leaving because of high housing costs and traffic, according to a survey by the Bay Area Council. People who have lived in the area for five years or less are those most likely to start packing their bags, according to the report. San Franciscans with lower income and those putting more of their income toward housing expenses were also listed among those prepared to leave.” (CNBC)
  6. Bidding Begins for Sports Chalet Stores “Prime retail real estate in Southern California and nearby states is now available after bankrupt Sport Chalet retained A&G Realty Partners to sell its assets. Following its recent Chapter 11 bankruptcy filing, Sport Chalet retained A&G Realty Partners to manage the sale of 58 retail store and office and distribution center leases. The firm is currently accepting bids on the leases, which range from 12,000 sq. ft. to 50,000 sq. ft. and are located in located in Arizona, California, and Nevada.” (Chain Store Age)
  7. When Complete, Hudson Yards Will Contribute $18.9 Billion to the City—More Than Iceland’s GDP “Related Cos. is aiming to finish the project between West 30th and West 34th streets—which includes 10.4 million square feet of office space, eight residential buildings, a cultural center and retail—by 2025. A study commissioned by the developer indicated that total economic output of the companies projected to occupy Hudson Yards will contribute $18.9 billion to the city's gross domestic product. Iceland's gross domestic product is $15.3 billion.” (Crain’s New York Business)
  8. GNC Exploring Options—Including Sale “GNC Holdings Inc. announced Monday it is undertaking a strategic review whose options could include a sale of the company. The health-and-wellness retailer said it is also considering accelerated refranchising strategies, partnerships and other collaborations, and capital structure optimization. The announcement comes on the heels of disappointing first quarter results.” (Chain Store Age)
  9. NYU Langone Leases Entire Manhattan Office Tower “NYU Langone Medical Center has signed a 30-year lease with Columbia Property Trust Inc., to take the entire space of its 25-story office tower at 222 E. 41st St., in Manhattan. ‘Manhattan, and notably the Midtown submarket, continues to fuel strong demand for space of the quality that this building offers, and this new location for NYU Langone will be an expansion of their primary facility that is located only a few blocks away,’ Nelson Mills, Columbia Property Trust’s president and CEO, told Commercial Property Executive.” (Commercial Property Executive)
  10. Apple Campus: The Must See Drone Flyover “Matthew Roberts, one of a few drone owners who has uploaded videos to YouTube each month showing the progress Apple is making on its new headquarters, has published his latest May update. The drone flyover depicts a campus that is still far from complete, but it appears to be making progress quite rapidly. In the flyover, the reel pictures construction workers hard at work, putting in the frames and solar panels that will ultimately power the facility.” (Fortune)
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