10 Must Reads for the CRE Industry Today (April 8, 2015)

10 Must Reads for the CRE Industry Today (April 8, 2015)


  1. China Life, Ping An Invest in Boston Waterfront Project “Two Chinese life insurance companies will make their first equity investments in U.S. real estate, teaming with Tishman Speyer on an office and residential project in Boston’s Seaport District. It will be the first time that China Life Insurance Group Co. and Ping An Insurance Group Co. of China have co-invested in real estate outside of their home country, according to a statement from the companies.” (Bloomberg)
  2. Commercial Property Values Now 14% Above 2007 Peak: Report “Real estate research firm Green Street Advisors reported Tuesday that commercial property values in March were 11% above March 2014, and unchanged from February. In all, values have now risen 87% since they bottomed out in 2009, and more than 14% from the prior peak in 2007, according to Green Street’s index. Looking ahead, many expect more growth unless something should change with the broader economy.” (The Wall Street Journal)
  3. U.S. Office Space Rent Rises at Fastest Clip in a Decade: Report “Stepped-up business hiring pushed the rental price of U.S. office space up 3.1 percent in the first quarter, the highest quarterly gain in a decade, as demand for commercial real estate accelerated, according to Jones Lang LaSalle Inc (JLL.N). Though occupancy growth in office space slowed to just over 6 million square feet from about double that pace throughout 2014, development activity and rental growth in particular sped up, JLL said in a report to be released on Wednesday.” (Reuters)
  4. Dollar Tree Expects to Sell 340 Stores in Family Dollar Deal “Discount retailer Dollar Tree said Tuesday it expects to be able to complete its purchase of competitor Family Dollar in May, and said it will have to sell about 340 Family Dollar locations to close the deal. Dollar Tree said the Federal Trade Commission is almost finished reviewing the $8.5 billion acquisition and has identified 340 stores that it wants the company to sell in order to preserve competition for consumers.” (The Associated Press)
  5. Vornado Could Give New York’s Penn Station Area New Lease on Life “One of the nation’s largest office landlords, Vornado is hoping to spark a revitalization of the area, where it is by far the dominant landowner, by investing hundreds of millions of dollars in new retail space, public plazas and other infrastructure, according to real-estate executives briefed on the plans.” (The Wall Street Journal)
  6. Top 10 Metros for Population Growth, Rental Rates “Changes in population is one of the most commonly cited drivers for rental change. Listed below are the top ten MSA’s for population growth from 2013 to 2014. At over a 3 percent growth, Austin significantly outperforms all other metros.” (Commercial Property Executive)
  7. Tishman Buys Santa Monica Office Building from Vornado “Tishman Speyer said it bought a top-tier office building in Santa Monica, California, from Vornado Realty Trust to add real estate in a market where it’s difficult to get approval for new projects. The 113,000-square-foot (10,500-square-meter) building is two blocks from Santa Monica’s Third Street Promenade shopping district, and tenants include Microsoft Corp., said Mark Laderman, a regional managing director at Tishman Speyer.” (Bloomberg)
  8. Commercial Real Estate Values Could Fall 19 Percent if Economy Improves “Money has been flowing through commercial real estate like a storm-powered river, pushing transactions to ever-higher prices both in U.S. cities and abroad. Bloomberg Business reported recently that U.S. investors are stocking up on European properties at levels that are approaching the pre-bust 2007 peak. They're doing this in part because the feeding frenzy in this country has pushed prices up so fast, buyers have to cross the ocean to find sweet deals.” (Huffington Post)
  9. American Realty Capital: New CEO Sets Dividend Time Table “American Realty Capital Properties (NASDAQ:ARCP) has been on a roller coaster ride since last October. While the accounting concerns are largely in the past, the real estate investment trust, or REIT, isn't out of the woods yet. One of the big remaining pieces of the puzzle is the dividend. And on that score, new CEO Glenn Rufrano has finally provided investors with a time line.” (Seeking Alpha)
  10. Famed Pearl River Mart Will Close its Three-Level SoHo Store “The 44-year-old store is the latest victim of rising rents on Broadway and increased competition from online retailers like Amazon and Alibaba. Pearl River currently pays more than $100,000 a month for its shop, and rent would rise more than five times when the lease expires at the end of December, according to Ms. Chen.” (Crain’s New York Business)
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