10 Must Reads for the CRE Industry Today (April 29, 2016)

10 Must Reads for the CRE Industry Today (April 29, 2016)



  1. What Flying Taught Me about Investing “I was a recreational pilot for about 10 years and used to read the back pages of Flying magazine religiously. They were dedicated to mistakes that pilots made, so that pilots like myself could learn from those lessons. Unfortunately, in the world of commercial real estate investing, no such back pages exist. Further, talking about mistakes is seen as taboo because a great real estate investment manager isn’t supposed to make mistakes.” (Huffington Post)
  2. Cousins, Parkway Real Estate Firms to Merge, Spin Off Houston Assets “Two real estate companies with a Charlotte presence announced a merger plan Friday that includes the spin-off of Houston-based assets. The deal between Atlanta-based Cousins Properties and Orlando, Fla.-based Parkway Properties would result in a larger Cousins and a new Houston-based firm, the companies said. Among their Charlotte holdings, Cousins owns the Fifth Third Center and Parkway owns the Nascar Plaza office tower.” (The Charlotte Observer)
  3. Forever 21 is Having Problems Paying the Bills “Don and Jin Sook Chang, the billionaire owners of Forever 21, seemed to have it all in recent years — a happy marriage and one of the hottest retail chains in the country. Now both may be on the rocks. The fast-fashion retailer, which for years was busy opening ever-larger stores around the globe, is late paying its bills, industry sources tell The Post.” (New York Post)
  4. How Startups Are Forcing Change in Commercial Real Estate “Thousands of tech startups launch in the United States every year, which is great news for commercial real estate (CRE) brokers. Almost every one of these companies needs office space, after all. These emerging businesses have a lot of growth potential: just think, one of them could be the next Airbnb or Pinterest, and the relationships brokers cultivate while they’re just starting out are critical to keeping their business as they grow.” (Forbes)
  5. Millennials are Leaving These 10 Cities in Droves Because of High Home Prices “High home prices are pushing three groups of people out of big, expensive cities: low-income workers, people in rural-based industries, and millennials. Trulia data scientist Mark Uh examined how the affordability crisis is pricing out various income groups. Using data from the 2014 five-year US Census American Community Survey, Uh looked into migration patterns away from the biggest — and often most expensive — cities.” (Business Insider)
  6. The Lasting Effect of the GE Move on Real Estate Market “GE’s decision to relocate its headquarters from a suburban campus in Fairfield to Boston brings a visible trend — corporate tenants leaving suburban properties behind for urban centers — into our own backyard. Data from Real Capital Analytics Inc., a commercial real estate data firm, shows a 125 percent increase in the values of commercial properties in central business districts, as opposed to their suburban counterparts that rose only 43 percent, over the past decade.” (Westfair Communications)
  7. Where Do Chicago Manufacturing, Transportation Employees Live and Work? “A new report from the Chicago Metropolitan Agency for Planning illustrates the extent to which factory employment, as it has fallen, has concentrated in the suburbs. While the suburbanization of manufacturing has being going on for years, the push appears to be deepening, with further-out villages and cities experiencing the best factory-job growth rates in the region, though in some cases they're increasing from a small base. A bigger swath region gained transportation jobs.” (Crain’s Chicago Business)
  8. Sears Closings Pose Threat to CMBS, Retail Operators “Morningstar Credit Ratings has identified $56.9 million in debt, across five commercial mortgage-backed securities deals, that could be adversely affected by Sears Holdings’ closure of 78 stores nationwide. In a report released on Monday, the rating agency identified an additional five CMBS loans with elevated risk of term or maturity default related to the closings. The retailer announced the decision to close 68 Kmart and 10 Sears stores last week.” (Commercial Observer)
  9. The Judges Who Rule Real Estate: Judge Saliann Scarpulla “This month, The Real Deal profiled six of the nine judges on the Supreme Court’s Commercial Division bench — focusing on those who have overseen some of the city’s biggest real estate cases in the last few years. This is the sixth and final web installment. She’s only served in the Commercial Division for two years, but Justice Scarpulla is short on neither experience nor reputation.” (The Real Deal)
  10. Atlanta Braves Now Officially a “Real Estate Business,” Because They Are Sure Not a Baseball Team “The Braves owners may be spectacularly bad at putting together a winning baseball team (though you can make an argument that they’re following the model set by the bust-to-boom Houston Astros, though the Astros are currently in last place now as well), but they’re expert in getting stadium money approved before anyone can notice what’s going on. That’s a real skill, especially in a subsidy world where public attention only gets lawmakers thinking about what they’re doing before voting on it, and you don’t want that.” (Field of Schemes)
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