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10 Must Reads for the CRE Industry (April 25, 2018)

Barry Sternlich warns that U.S. needs Chinese investment, according to CNBC. Brookfield Asset Management is looking to put money into real estate tech start-ups, reports the Wall Street Journal. These are among today’s must reads from around the commercial real estate industry.

  1. Retail Reckoning: How Private Equity Is Boosting Some Brands and Crushing Others “It was the distinctive patch that caught his attention. Boston was enduring a particularly brutal winter in 2013 when Ryan Cotton began to notice a trend on his daily walk to work near Copley Square: the suddenly growing number of sharp-looking parkas with a logo showing a polar cap surrounded by flaming red maple leaves. Craning his neck for a closer look one day, Cotton, a managing director overseeing investments in consumer brands at the private equity firm Bain Capital, was intrigued all the more by the reference on the logo to an “Arctic Program.” What was this brand, he wondered?” (Fortune)
  2. Global Investor Barry Sternlicht Warns Trump: U.S. Needs Chinese Investment Because ‘We’re Not a Rich Country’ “President Donald Trump needs to be careful not to alienate China with trade tariff threats to the point where the world's second-largest economy won't invest in the United States anymore, Starwood Capital's Barry Sternlicht told CNBC on Tuesday. ‘It's very tough if you know the Chinese persona to punch them in the face publicly and ask them to back down,’ said Sternlicht, founder and CEO of the global Starwood Capital investment firm with $56 billion in assets under management. ‘We kick everyone in the face and we become the 'Island Nation of the States.’” (CNBC)
  3. Brookfield’s New Venture Capital Unit Eyes Real Estate Tech Start-Ups “Brookfield Asset Management is the latest global landlord to form a venture-capital unit to plow money into the growing number of potentially disruptive technologies in the real-estate business. Toronto-based Brookfield, which has $285 billion in assets under management, plans to invest $200 million to $300 million over the next three years in startups in its four business lines: real estate, infrastructure, power and private equity, according to Stewart Upson, a Brookfield managing partner.” (Wall Street Journal, subscription required)
  4. Wynn CEO: I’m Ready to Talk About the Future with Elaine Wynn, Our Largest Shareholder and Cofounder “New Wynn Resorts CEO Matt Maddox said Wednesday he's ready to talk business with Elaine Wynn, the company's largest shareholder and ex-wife of disgraced casino mogul Steve Wynn. ‘I've reached out to her a number of times to talk about the future of the company,’ Maddox told CNBC's ‘Squawk Box.’ ‘I'm really excited about the future of the company. And anytime she wants to meet with me and talk about the future, I'm open. She has my cellphone. She has my email.’” (CNBC)
  5. 10 Must-Do Tasks for Your Rental Property’s Spring Cleaning “For much of the country, the warmer weather sparks a renewed motivation in homeowners to tackle tasks that may have been pushed aside during the shorter days and colder temperatures. If you are managing your rental properties on your own, it may be a good time to do some spring cleaning. Being proactive with maintenance responsibilities can also prevent calls from your tenants. Equally as important, it can also provide insight on how your tenant is treating your property.” (Forbes)
  6. Conde Nast Looking to Sublease a Third of its WTC Headquarters “Condé Nast revealed on Monday that consolidation plans underway will result in the publisher subleasing out more than a third of its headquarters at One World Trade Center. The sublease of 350,000 of its 1 million square feet of office space will mean that the seven of the 23 floors in the 104-story tower now rented by Condé Nast will be up for grabs.” (New York Post)
  7. New Co-Working Concept to Make U.S. Debut “The co-working workspace revolution is coming to a mall in Atlanta. Luxury workspace provider No18 has signed a lease to debut its first-ever U.S. location at The Shops Buckhead Atlanta. Slated to open in fall 2018, No18 will occupy nearly 32,000 sq. ft. of space at the open-air center. (Owned and managed by OliverMcMillan, The Shops Buckhead Atlanta spans six city blocks, and features more than 50 stores and restaurants along a streetscape setting.)” (Chain Store Age)
  8. Which Is Best: REITs or Real Estate Crowdfunding? “If you're seeking the benefits of investment real estate but not in the market for the expense and workload of buying and managing rental properties, real estate investment trusts and real estate crowdfunding are ways to become a landlord. The REIT title act, signed by President Dwight Eisenhower in 1960, created REITs to give the average investor access to income producing real estate. Today, anyone with a few thousand dollars or less can buy a REIT exchange-traded fund or invest in a real estate crowdfunding platform.” (U.S. News & World Report)
  9. CoStar Prepares to Sic the Lawyers on 30,000 “Freeloaders” “CoStar Group, which brought its vast financial resources to bear in bringing the guillotine down on arch-rival Xceligent, now plans to go after ‘freeloaders’ who access its database without paying. Company CEO Andrew Florance said CoStar ‘invested significant legal fees and efforts over the past two years’ to bring Xceligent ‘to a complete stop.’” (The Real Deal)
  10. Staten Island Outlet Center Signs Another Major Tenant “The wheels are turning in the right direction at Staten Island’s Empire Outlets even as The Wheel, the complex’s next-door but unrelated development project, remains stalled. Empire Outlets developer BFC Partners, led by principal Joseph Ferrara, has signed another major retail tenant — Old Navy, which will have 13,382 square feet. The deal brings the Outlets’ total retail and restaurant space of 340,000 square feet to 71.54 percent leased, according to a spokesman. The openings are set for the fall.” (New York Post)
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