10 Must Reads for the CRE Industry Today (January 26, 2015)

10 Must Reads for the CRE Industry Today (January 26, 2015)


  1. Chinese Developer to Build San Francisco’s Tallest Tower “The skyline of downtown San Francisco is about to be transformed by a pair of towering buildings totalling two million square feet (186,000 square metres) and the force behind this megadeal is a little-known developer from Beijing, China.” (Forbes)
  2. Freddie Mac Selling $410 Million of Delinquent Home Loans “Buyers are bidding on three pools of loans, with unpaid principal balances of $160 million, $141 million and $109 million respectively, according to loan broker Mission Capital Advisors. Offers on the debt are due Feb. 4.” (Bloomberg)
  3. 2 Detroit-Area Outlet Centers Could Happen This Year “Even as the ease of online shopping forever changes the retail world, a few local developers see a strong future in building more brick-and-mortar outlet malls in metro Detroit.” (Detroit Free Press)
  4. David Shulman: The Answer to the Big REIT/Rate Question is 79% “In a forthcoming analysis for UCLA’s Ziman Center for Real Estate, Mr. Shulman concludes that 79% of REITs’ performance relative to the S&P 500 in 2013 and 2014 was explained by changes in the yield on 10-year treasury notes. The rest of the performance was due to other factors like the underlying fundamentals of real estate assets, Mr. Shulman says.” (The Wall Street Journal)
  5. Tiffany is Feeling Blue, Boxed In “Like many other luxury-goods companies, Tiffany must also come to grips with shifting shopper tastes. The baby boomers who have long accounted for much of Tiffany's sales are aging, and the new generation of millennials is searching out quality labels that might not be found in their mother's jewelry box.” (Crain’s New York Business)
  6. Real Estate Investment Groups Can Maximize Value Through Sophisticated Tax Planning “Real estate partnerships pool funds from various investor groups, family offices and public entities to invest in property platforms seeking high cap rates and strong yields. Even though the investors within each fund have different tax structures and tax needs, the goal of enhancing each investor’s rate of return can be accomplished through sophisticated tax planning strategies.” (Accounting Today)
  7. 1 Reason to Buy Mall REITs (Hint: It’s Not the Big Dividend) “It may sound counterintuitive, but it's my belief that Simon and Macerich benefit from weaker demand for new malls and outlets. This is because it shelters them from the devastating impact of overbuilding.” (The Motley Fool)
  8. Law Firms’ CRE Execs Have New Priority “More law firm decision-makers now believe the traditional partnership structure is headed for an overhaul, according to Cushman & Wakefield’s second National Legal Sector Benchmark Survey, which focuses on the key drivers affecting real estate decisions in the legal sector.” (GlobeSt.)
  9. Don’t Let Oil Distract You from This Potentially Epic Real Estate Collapse “Just this past week the NBSC released sale price data on newly built commercial residential buildings in 70 medium- and large-sized cities in China in December 2014. The data showed that commercial residential building prices declined in 66 of 70 cities, were unchanged in three cities, and rose in just one city. In November, 68 cities demonstrated a month-over-month price decline.” (The Motley Fool)
  10. Even Brand-New, a Suburban Hospital Struggles to Find Patients “When Adventist Bolingbrook opened in 2008, it was the first new hospital in Illinois in 25 years. Yet 58 percent of its beds were empty that first year. The situation has improved since then, but only modestly. In 2013, 55 percent of its 138 beds were routinely empty, a vacancy rate that puts it among the worst hospitals in the Chicago area. It is a $152 million white elephant.” (Crain’s Chicago Business)
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