sephora Mark Metcalfe/Getty Images

10 Must Reads for the CRE Industry Today (July 24, 2017)

R Street asks if commercial real estate is facing another bubble. Sephora is launching a new store concept, reports Chain Store Age. These are among today’s must reads from around the commercial real estate industry.

  1. Three Quality Mall REITs to Buy “To a certain extent, I’m tired of reading such overblown, negative -- almost apocalyptic-like -- headlines regarding the retail industry today. Sure, there are some retailers in more trouble than others and at a higher risk of going bankrupt. Department store chain Sears, clothing retailer J. Crew, accesories brand Nine West and children’s boutique Claire’s, to name a few. Many of these struggling retailers’ stores were once bustling in my hometown mall, but I’ve watched the traffic come and go, as the so-called new kids on the block -- companies like Lululemon, Sephora, Zara and Nordstrom -- take their place.” (Forbes)
  2. U.S. Existing Home Sales Drop as Prices Hit Record High “U.S. home resales fell more than expected in June as a dearth of properties lifted house prices to a record high. The National Association of Realtors said on Monday existing home sales dropped 1.8 percent to a seasonally adjusted annual rate of 5.52 million units last month. May's sales pace was unrevised at 5.62 million units. Economists polled by Reuters had forecast sales falling 1.0 percent to a 5.58 million-unit rate.” (CNBC)
  3. Is the Real Estate Double Bubble Back? “In the wake of the bubble, the Federal Reserve set out to create renewed asset-price inflation. It certainly succeeded with commercial real estate – a sector often at the center of financial booms and busts. Commercial real estate prices dropped like a rock after 2007, far more than did house prices, falling on average 40 percent to their trough in 2010. Since then, the asset price inflation has been dramatic: up more than 100 percent from the bottom. In inflation-adjusted terms, they are up 83 percent.” (R Street)
  4. Drop in Manhattan Retail Rents Has Retailers Looking “Lower rents and generous tenant incentives persuaded more Manhattan retailers to check out potential shop space in the second quarter, but leasing remained slow as merchants wait to see just how good a deal they can secure, brokers and analysts said. Asking rents for ground-floor spaces dropped in 11 of 16 prime Manhattan shopping corridors from a year ago, with some falling as much as 22% on stretches such as Spring Street.” (Wall Street Journal)
  5. Three Ways to Thrive in a Trump Real Estate Market “If you’re a real estate investor and been keeping up with current events, chances are you’ve asked yourself this question: ‘How will Trump’s presidency affect the market?’ Since Donald Trump has made millions as a real estate entrepreneur, common sense says he will likely implement policies to strengthen the real estate industry. At the very least, he wouldn’t make a decision to undermine it. He wouldn’t hurt his own bottom line, right?” (Forbes)
  6. Velocis Snags WPB Office Tower “Velocis has completed the purchase of One Clearlake Centre, a 218,461-square-foot, Class A office tower in West Palm Beach, Fla. Joint venture partner CREC will provide management and marketing services at the 18-story property. CBRE represented the seller, AEW Capital Management, in the transaction, while also procuring acquisition financing on behalf of the borrower/buyer. The new ownership plans to invest into a multi-million-dollar capital improvement project and implement an active marketing program.” (Commercial Property Executive)
  7. First Look: Beauty Giant Launches New Store Concept “Sephora continues to experiment with store formats, and this time it's going smaller. The beauty retailer has opened a new concept, called Sephora Studio, on Newbury Street in Boston, designed to provide a very customized shopping experience, one that drives personal connections with customers. At 2,000 sq. ft., it is the brand's smallest store in North America, and features a variety of digital tools to optimize customer experiences before, during and after their visit.” (Chain Store Age)
  8. E-Commerce Expansion Driving Global Prime Logistics Rents Higher in 2017 “According to CBRE, U.S. industrial hubs posted the strongest growth in prime logistics rents for the past year, and Asian markets remained the world's most expensive as demand for top-quality warehouses and distribution centers continued to outpace supply globally. CBRE's second-annual Global Industrial & Logistics Prime Rents Report found that prime rents in 70 major markets across the globe increased by 2.2 percent on average in Q1 2017 compared to the same period a year ago. That growth rate continues a string of several years of growth in the measure.” (World Property Journal)
  9. Brandywine Realty Relocates HQ to Urban Philly “Real estate investment trust Brandywine Realty Trust will relocate its corporate headquarters to FMC Tower at Cira Centre South in Philadelphia from 555 E. Lancaster Ave. in Radnor, Pa. Although the firm will centralize its business to urban Philadelphia, the suburban location will continue to serve as a secondary branch, in addition to being a hoteling workstation for employees on the move.” (Commercial Property Executive)
  10. How Atlantic City Went from a Bustling Tourist Hub to a Ghost Town “Atlantic City was once New Jersey's largest tourist attraction. As the first city to provide gambling outside of Nevada, it provided those on the East Coast a place to vacation on the beach and gamble. But the city has seen hard times these past few years; five of the city's 12 casinos closed between 2013 and 2016, and Atlantic City's unemployment rate is 6.3% (well above the national rate of 4%). Just this May, the Trump Taj Mahal — which originally opened in 1990 — sold for four cents on the dollar.” (Business Insider)
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.