10 Must Reads for the CRE Industry Today (September 2, 2015)

10 Must Reads for the CRE Industry Today (September 2, 2015)


  1. Construction Emerging as Strongest Sector of the Economy “With little fanfare, the U.S. construction sector is heating up, turning it into a growth engine for the economy. ‘Private construction is on a roll,’ said Patrick Newport, U.S. economist for IHS Global Insight. Construction played a pivotal role in the second quarter, adding 1.3 percentage points to the solid 3.7% annual gross domestic product.” (MarketWatch)
  2. Gross Says Fed Move May Be ‘Too Little, Too Late’ Amid Turmoil “Bill Gross said the Federal Reserve has waited so long to raise interest rates that any move now may be labeled ‘too little too late’ as market turmoil restricts the room for policy makers to act. Federal Reserve Bank of Boston President Eric Rosengren said yesterday that uncertainty over inflation and global growth justifies a modest pace of interest-rate increases.” (Bloomberg)
  3. FHA Offers Olive Branch to Hesitant Lenders “The government is trying to coax banks back to making mortgage loans to risky borrowers, after a string of expensive disputes over a federal loan program led some banks to conclude it wasn’t worth the headaches. At issue are loans backed by the Federal Housing Administration, a government agency that insures lenders against default when they extend mortgages to qualified buyers with credit scores of as low as 580 and down payments as low as 3.5%.” (Wall Street Journal)
  4. Hines Buying Atlantic Station for Over $200M? “Sources have told us that Hines Interests may be the party that has Atlantic Station's retail mini city under contract—for an impressive price of some $200M. We first reported here that North American Properties (in a JV with CBREI) ID'd a buyer for the 586k SF trophy retail juggernaut for a close by year-end. If Hines turns out to be the buyer, it means the Houston-based REIT would pay more than $340/SF.” (Bisnow)
  5. TPG’s Broker Deal is at Best Time, Cushman CEO White Says “’In my business career, there’s never been a better moment than right now to complete this transaction because the cost of the capital we’re using is so extremely inexpensive,’ said Brett White, who engineered the purchase of Cushman, the largest closely held commercial real estate services firm, on behalf of TPG. ‘That gives us enormous latitude.’” (Bloomberg)
  6. Number of Building Permits Plunges “The great rush for housing permits in New York City to lock in the lucrative 421-a tax break for apartment buildings gave way to a precipitous decline in July. The number of permits issued that month fell by 90% from June, according to statistics released last week by the U.S. Census Bureau. The fall-off was especially steep in Queens, at 98%, and Brooklyn, 97%.” (Crain’s New York Business)
  7. Economy Watch: How Are CRE Investors Feeling? “Strong consumer sentiment is all well and good, but it’s also important for the health of the commercial real estate market for major institutional investors to be happy too. Otherwise they might be inclined to take their capital and go elsewhere. Fortunately, according to a recent report by Preqin, there’s a general sense of satisfaction among real estate investors, with the majority of them holding a positive perception of the asset class.” (Commercial Property Executive)
  8. Who Will Be Holding the Bag? “The U.S. housing market is steadily (if slowly) recovering, while New York real estate is breaking one record after another. And once again, capital from all corners of the world is flowing into the Big Apple. But while New York real estate is widely regarded as safe, ballooning prices have some observers warning of the next crash. And those who are getting in now might have more to worry about than earlier investors.” (The Real Deal)
  9. Crestline Hotels Bulks Up “Crestline Hotels & Resorts, L.L.C. has added 13 full, select, and extended stay hotels in eight states to its management portfolio, increasing its guestrooms by 1,493 to a company-wide total of more than 13,500 keys. The 13 properties, owned by American Realty Capital Hospitality Trust, Inc., and are situated throughout the U.S., from Nevada to South Carolina.” (Commercial Property Executive)
  10. Apple Stores are About to Change in This Huge Way “The Apple Stores that have become the visible symbol of the company’s ubiquity will be getting a makeover, starting with a ‘next generation’ retail store in Memphis. Apple’s new location at the Shops of Saddle Creek mall in Germantown will see several departures from the company’s traditional retail look and feel.” (Fortune)
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