10 Must Reads for the CRE Industry Today (August 22, 2017)

Simon Property Group reached a settlement in the Woodbury Common Premium Outlets antitrust case, reports the Wall Street Journal. Chesapeake Real Estate Group plans to develop 1 million sq. ft. of industrial space in Maryland, according to the Baltimore Sun. These are among today’s must reads from around the commercial real estate industry.

  1. Simon Property Reaches Settlement in Antitrust Investigation by New York “New York State Attorney General Eric Schneiderman and retail property giant Simon Property Group Inc. reached an antitrust settlement that requires Simon to end practices that protected its wildly popular Woodbury Common Premium Outlets from competition, according to a statement released by the attorney general’s office.” (Wall Street Journal, subscription required)
  2. Americans Shift from Spending at Mall to Spending on Health Care “The brick-and-mortar retail industry is in crisis. For many old-line retailers, sales and market share are plunging fast. The most obvious explanation for their distress is the rise of online shopping, but some analysts mistakenly point to another trend: ‘Shoppers are choosing experiences over stuff, and that’s bad news for retailers.’ Instead of purchasing a couch, we’re going to Paris! Or maybe buying avocado toast.” (MarketWatch)
  3. Chesapeake Real Estate Group Acquires 259 Acres in Curtis Bay “Chesapeake Real Estate Group has acquired 259 acres in Anne Arundel County and plans to develop up to 1 million square feet of industrial and warehouse space there. The Baltimore-based real estate company acquired the Curtis Bay property, known as Brandon Woods III, from Exelon Corp. Financial terms were not disclosed. Chesapeake and partner EverWest Real Estate Partners expect to break ground in September on the $75 million project’s first phase: a 500,000-square-foot industrial building.” (Baltimore Sun)
  4. Famed Plaza Hotel Is on the Block “The Indian owners of the Plaza Hotel have hired a broker to sell the New York City landmark, a sign that a world-wide scramble among investors, celebrities and governments to acquire the property could be nearing an end. Sahara Group, a Lucknow, India-based conglomerate and the hotel’s majority owner, has enlisted JLL Hotels and Hospitality Group, a unit of real-estate firm JLL, to find a buyer.” (Wall Street Journal, subscription required)
  5. Heidi Klum Fashion at a Supermarket? Grocers Now Sell More than Food “Former supermodel Heidi Klum is known for glamour and her svelte physique, but her new women's clothing line be sold under the same roof as candy, canned peaches and disposable diapers — at a supermarket chain. The leap from salad dressings to sun dresses is part of an industry trend. More grocery stores turning to products that have nothing to do with food.” (USA Today)
  6. What Amenities Do Tenants Want? “Does your property have everything your tenants need? Commercial Property Executive and Kingsley Associates asked what would bring the most value to your asset. ‘Some additional amenities I would like to see are better walking trails, modern vending machines that accept credit cards and more common-area seating in the hallways for breaks or casual meetings.’ —Austin, Texas.” (Commercial Property Executive)
  7. Ernst & Young Might Relocate to One Manhattan West “Negotiations are actively moving along for a possible relocation by Ernst & Young to Brookfield’s One Manhattan West. The professional-services giant is in talks for around 400,000 square feet, we’re told — a major commitment although not as large as previously reported. Ernst & Young is currently at 5 Times Square. Asking rents at One Manhattan West run to $105 a square foot, my colleague Lois Weiss recently reported.” (New York Post)
  8. Ross Stores Remains the Big Winner of Brick-and-Mortar Retail “Most U.S. retailers produced better results last quarter than they did in the first few months of 2017. Nevertheless, the vast majority of them posted second-quarter adjusted earnings that were flattish or down on a year-over-year basis. Ross Stores was the biggest exception. The off-price giant reported strong sales growth and a 15% jump in earnings per share, outpacing its larger off-price rival TJX. With American consumers still laser-focused on getting the most bang for their buck, Ross Stores' success is likely to continue for the foreseeable future.” (The Motley Fool)
  9. Related Seeks $30M More in EB-5 Financing for Hudson Yards “Related Companies is seeking $30 million more in EB-5 financing for 35 and 55 Hudson Yards and the Western Rail Yards. The company is looking for $10 million each for 35 and 55 Hudson Yards — respectively, a 1.1 million-square-foot mixed-use tower and a 1.7 million-square-foot office building — after requesting hundreds of millions of dollars for the towers two months ago, New York YIMBY reported.” (The Real Deal)
  10. NASA Opens 118 KSF Biomedical Lab “The Johnson Space Center at NASA in Houston has opened the Human Health and Performance Laboratory (Building 21), a 118,000-square-foot biomedical laboratory facility, designed by HDR based on NASA technical requirements. The facility is home for the JSC Human Health and Performance Directorate, the primary agency organization focused on improving the health of astronauts and their performance while mitigating the human system risks associated with spaceflight.” (Commercial Property Executive)
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