10 Must Reads for the CRE Industry Today (December 14, 2017)

The House and Senate Republicans agreed on a final version of the tax bill on Wednesday, according to the Wall Street Journal. CNBC looks at the cities that grew the most since the recession. These are among today’s must reads from around the commercial real estate industry.

  1. House, Senate Republicans Reach Deal on Final Tax Bill “House and Senate Republicans on Wednesday reached an agreement on the final version of a tax bill, clearing the way for the GOP to complete a big legislative priority before Christmas. The full details will be released later this week, and votes are set for next week.” (Wall Street Journal, subscription required)
  2. Target to Acquire Grocery-Delivery Company Shipt in $550 Million Cash Deal “Target Corp. said Wednesday that it has agreed to acquire Shipt, an online same-day grocery delivery company, for $550 million in cash. The deal is expected to close before the end of 2017. Target shares are up 1.6% in Wednesday trading. Target expects to make same-day delivery service to guests at about half of the company's 1,834 stores by early 2018 and at the majority of stores before the 2018 holiday season. By the end of 2019, same-day delivery will include all major merchandise categories, the company said.” (MarketWatch)
  3. Decade since Recession: Thriving Cities Leave Others Behind “As the nation's economy was still reeling from the body blow of the Great Recession, Seattle's was about to take off. In 2010, Amazon opened a headquarters in the little-known South Lake Union district — and then expanded eight-fold over the next seven years to fill 36 buildings. Everywhere you look, there are signs of a thriving city: Building cranes looming over streets, hotels crammed with business travelers, tony restaurants filled with diners.” (CNBC)
  4. Manhattan Luxury Condo Sales Skew Apartment Prices: Survey “A boom in newly built luxury apartments in Manhattan has skewed prices for the overall residential real estate market in the borough and masked a sharp drop in transaction volume over the past five years, a property report on Wednesday showed. The number of apartment sales priced above $10 million has doubled since 2013 when the post-crisis recovery was fully in swing, CityRealty’s 2017 Year-End Manhattan Market Report said.” (Reuters)
  5. Next Up for Westfield’s Lowy Family: Blurring Retail Lines “Fresh off the announced sale of its shopping-mall empire in the U.S., the Lowy family is making a new bet on the future of retail: that the line between online and bricks-and-mortar shopping will disappear. European shopping-center operator Unibail-Rodamco SE agreed this week to buy Sydney-based Westfield Corp. for $15.7 billion, capping the career of Westfield Chairman Frank Lowy, a Holocaust survivor who helped popularize malls across Australia.” (Wall Street Journal, subscription required)
  6. Why REITs May Be Worth a Second Look in 2018 “Is it time for another look at a beaten-down sector? In recent years, investors have avoided real estate investment trusts like the plague — or like the half-empty malls in Rust Belt towns, anyway. Concerns about rising interest rates, an aging real estate cycle and the “Amazon effect” have punished REITs: the Vanguard REIT ETF is up 1.7% for the year to date, creamed by the 18.6% gain for the S&P 500. But now, like the merchandise at a department store going-out-of-business sale, REITs may be cheap enough to warrant another look.” (MarketWatch)
  7. U.S. Commercial, Multifamily Mortgage Debt Rises to $3.11 Trillion “According to the Mortgage bankers Association, the combined level of commercial and multifamily mortgage debt outstanding increased by $45.4 billion, or 1.5%, to $3.11 trillion in the third quarter of 2017 as all four major investor groups, including Commercial Mortgage Backed Securities (CMBS), increased their holdings over the second quarter. Multifamily mortgage debt outstanding rose to $1.2 trillion, an increase of $24.9 billion, or 2.1 percent, from the second of quarter of 2017.” (World Property Journal)
  8. Inside the Incredible NYC House Made Out of Shipping Containers “Over two decades as a restaurateur, Joe Carroll has incorporated odds and ends from salvage yards into his Brooklyn eateries. In beloved steakhouse St. Anselm, for example, he used decorative molding from the 1940s on the ceiling. But Carroll, a 47-year-old New Jersey native whose popular restaurants and nightspots include barbecue joint Fette Sau and beer bar Spuyten Duyvil, didn’t think about crafting his own house from upcycled building blocks until the early 2000s, when he read about area houses made from decommissioned shipping containers.” (New York Post)
  9. The New Players in the Co-Working Game? Equity Office and Hines “Co-working is coming for two of the country’s leading office building owners. Blackstone Group-owned Equity Office and Houston-based Hines have both released RFPs looking for partners to help them gain experience in the co-working business currently dominated by WeWork, according to Reuters. Equity Office is particularly interested in figuring out how to make tenants more interested in their Howard Hughes office complex in Los Angeles, and the company expects responses to their RFP in the next few days.” (The Real Deal)
  10. How to Begin Investing in Real Estate as a Landlord “When Arlington resident Jesse Shapiro wanted to diversify his investment portfolio with real estate, he recognized quickly that he didn’t want to buy a place in the Washington area. With the help of Roofstock, an online real estate investment platform, Shapiro and his wife purchased a single-family house in a suburb of Raleigh, N.C., in January. The decision to buy locally or long distance is one of many to make if you want to join the world of real estate investors.” (Washington Post)
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