10 Must Reads for the CRE Industry Today (February 26, 2018)

Before it reports its earnings Thursday, Nordstrom hopes to strike a deal to take the company private, CNBC reports. There is no sign that the Federal Reserve will raise interest rates more than three times this year, according to MarketWatch. These are among today’s must reads from around the commercial real estate industry.

  1. Nordstrom Family has Lofty Goal of Striking a Go-Private Deal Before Earnings Next ThursdayNordstrom’s founding family group hopes to seal a deal to take the company private before it reports earnings next Thursday, sources told CNBC, though cautioning that goal may be lofty. The department store chain has met with investment banks to discuss financing for a new bid, said the sources, who requested to remain anonymous because the talks are private.” (CNBC)
  2. New Office Space Created in Retail’s Tumult “Normandy Real Estate Partners found what it viewed as the perfect spot for a high-end Manhattan office development: the upper floors of the ABC Carpet & Home building, a retail industry landmark.” (Wall Street Journal, subscription required)
  3. Fed on Track for 3 Rate Hikes in 2018, But 4? No Sign in Report to Congress “The Federal Reserve gave little hint in its latest report to Congress that it’s prepared to raise U.S. interest rates more aggressively in 2018, reflecting uncertainty among senior officials about how fast inflation will rise this year.” (MarketWatch)
  4. The Federal Reserve Thinks Stocks and Commercial Real Estate Prices Are Getting Too HighFederal Reserve policymakers believe financial market asset prices are high, according to the central bank’s ‘Monetary Policy Report’ to Congress on Friday. ‘Valuation pressures continue to be elevated across a range of asset classes, including equities and commercial real estate,’ the report said.” (CNBC)
  5. Robot Butlers Are Taking Over Hotels. Good News: No Tipping Required. “If you need yet another reminder that we’re all living in the future, check out the latest employee of Yotel Boston. It’s a purple guest services droid named YO2D2.” (Forbes)
  6. Want to Buy a Luxury Hotel in the U.S.? Try China’s Insurance Regulator “When Chinese regulators seized control of Anbang Insurance Group Co., they took ownership of more than a dozen luxury U.S. hotels, including New York’s famed Waldorf Astoria.” (Wall Street Journal, subscription required)
  7. 2 Ways to Find REITs with 160% Upside as Rates Rise “Let’s assume that higher long-term rates (3%+) are here to stay. Can REITs (real estate investment trusts) and high rates co-exist? Or must there be just one winner in this suddenly one-sided tug of war?” (Forbes)
  8. Zoning Change Triggers Spike of Deals in Midtown “When the Midtown East rezoning plan was approved during the summer, the de Blasio administration said it would take more than two decades for the full effects to be seen.” (Crain’s New York Business, subscription required)
  9. Is the REIT Sell-Off Over? “If you’re a homeowner, you know that even though they aren’t making any more real estate, property values sometimes act as if they are churning out new continents from time to time. This is one of them. Does this mean real estate is undervalued?” (InvestmentNews)
  10. De Blasio Defends Market-Based Affordable-Housing Plan “Mayor Bill de Blasio offered one of his fiercest defenses yet of his market-driven affordable-housing plan on Friday morning.” (Crain’s New York Business, subscription required)
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