10 Must Reads for the CRE Industry Today (November 13, 2017)

Brookfield Property has offered $14.8 billion to buy the shares of GGP Inc. that it does not own, the Wall Street Journal reports. There already is speculation about who may replace New York Fed President Bill Dudley, according to CNBC. These are among today’s must reads from around the commercial real estate industry.

  1. Brookfield Property Confirms $14.8 Billion Offer to Buy Remainder of GGP “Brookfield Property Partners LP confirmed Monday it has made a $14.8 billion offer to buy the shares of mall owner GGP that it doesn’t already own.” (Wall Street Journal)
  2. The ‘Second-Most’ Important Job at the Fed Will Soon Be Vacant. Here’s Who May Get It “Replacing New York Fed President Bill Dudley may be one of the most controversial Fed appointments in recent memory. Dudley, who is in his mid-60s, announced his retirement last week, likely by the spring or summer, and speculation is already rife in markets about who will get his job.” (CNBC)
  3. The Oversaturated Hotel Market Is Ruining NYC “More international visitors are flocking to the Big Apple this year than last — a 13.6 percent jump to 13.1 million, up from 12.6 million in 2016, Bloomberg reported this past week. Great! Now we can look forward to giving directions to even more dazed foreigners at Rockefeller Center who stop us to ask for directions to Rockefeller Center.” (New York Post)
  4. The Death Knell for the Bricks-and-Mortar Store? Not Yet “On a quiet strip of Rue de Marignan, just down the block from the Paris power-lunch spot L’Avenue, Alex Bolen, the chief executive of Oscar de la Renta, was standing outside No. 4, where the brand is to open a store next May. ‘We think long and hard before we enter into a lease,’ Mr. Bolen said. ‘With all that’s going on in retail, we need to think even harder. For a luxury brand, what’s the point of a store, at least a bricks-and-mortar store?’” (The New York Times)
  5. Will Tax Bill Produce a Real Estate Debacle Or Is a Boom Ahead? “I have seen some clues within the real estate market that are somewhat reminiscent of the environment leading up to the Great Financial Crisis of 2008. However, there was a roughly two year lead time between the first signals of excesses and the crash of 2008.” (Forbes)
  6. What Trump’s Tax Plan Could Mean for NYC’s Renters “As part of a national tax overhaul Congress is planning to curtail the ability to deduct mortgage interest and state and local taxes from federal taxable income. e Senate proposal would eliminate so-called SALT deductions entirely but leave mortgage interest alone. The House version permits up to $10,000 in property-tax deductions but allows interest only on the first $500,000 of new mortgages to be deducted, down from $1 million today. The pain would be greatest in places like New York City, where homes are expensive and income taxes are high. Mayor Bill de Blasio has noted that 617,000 city homeowners save $2 billion by writing off state and local income and property taxes.” (Crain’s New York Business)
  7. Morgan Stanley: Amazon Could Be a $1 Trillion Company Within a YearAmazon may reach the $1 trillion market value milestone in the next year, according to a top Wall Street firm. Morgan Stanley reiterated its overweight rating for Amazon shares, presenting a ‘bull case’ 12-month price target of $2,000 per share or roughly a $1 trillion market cap.” (CNBC)\
  8. New Enrollments by Foreign Students at U.S. Campuses on the Decline “The surge in foreign student enrollment that has bolstered diversity and finances at U.S. colleges for the past decade is starting to slow—and concern that the Trump administration is tightening borders is only one factor in the turning tide.” (Wall Street Journal)
  9. Two Holiday Shoppers Stabbed At Mall of America “Two people were stabbed at the nation’s largest mall Sunday evening in what police say was an ‘interrupted theft.’” (Fortune)
  10. CRE Market Outlook Takes Slight Dip Nationwide: Moody’s “The supply-demand outlook in commercial real estate markets took a slight dip nationwide for the first time since early 2016 and financing for some CRE property types is getting more difficult to arrange.” (National Mortgage News)
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