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Kaluakoi Resort

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

MarketWatch looks at whether rent control affects crime rates. Strip centers are outperforming the rest of the retail real estate sector, according to Forbes. These are among today’s must reads from around the commercial real estate industry.

  1. Hudson’s Bay CEO Says Closing Stores Starts a Spiral That ‘Can’t Be Stopped’ “Hudson’s Bay, which owns Saks Fifth Avenue and Lord & Taylor in the United States (as well as a namesake chain in Canada and the Netherlands and a pair of retailers in Belgium and Germany) continues to expand, opening dozens of Saks Off Fifth discount stores in the last year and renovating and rebranding 15 stores in the Netherlands. It is doing so even as it invests in e-commerce, a formula Storch told the conference is the key to being one of the survivors.” (Fortune)
  2. Strip Malls: The Least Glamorous Segment in Retail is Among the Sector’s Strongest Performers “Retail real estate in 2017 can be best described in two words: ‘in flux.’ Vacancies across the nation have risen as big-box retailers and department stores announced closures and the construction of new product simultaneously slowed. But experts agree that retail real estate’s fundamentals remain strong. Mall operators continue to adapt to the changing landscape, and high-traffic, urban metro markets remain the best-performing in the sector.” (Forbes)
  3. Does Rent Control on Property Increase or Reduce Crime Rates? These Economists Have the Answer… “Cambridge represents a strong test subject for studying the impact of rent deregulation, according to the paper, which was distributed by the National Bureau of Economic Research. The city’s rent control policy was eliminated following the success of a statewide referendum in 1994. Nearly 60% of Cambridge’s voter’s opposed the referendum, indicating strong support for rent control at the time.” (MarketWatch)
  4. Mandalay Bay Weighs Fate of Vegas Gunman’s Infamous Suite “What will become of the now-notorious Las Vegas hotel suite that a 64-year-old retiree used to stage the deadliest mass shooting in modern U.S. history? That is the difficult decision facing the Mandalay Bay Resort and Casino a week after Stephen Paddock opened fire on a crowd at an outdoor concert from room 135 on the hotel’s 32nd floor, killing 58 and injuring more than 500.” (New York Post)
  5. Why Is the Fed Still Raising Rates? The Yellen Effect “The Federal Reserve conducts the nation’s monetary policy under a mandate from Congress to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy. The Fed began its current round of rate hikes in 2015, and the Fed Funds target rate now stands at 1.25%, up from 0% two years ago. The Federal Open Market Committee (FOMC) judges that inflation at the rate of 2 percent (as measured by the annual change in the price index for personal consumption expenditures, or PCE) is most consistent over the longer run with the Federal Reserve's mandate.” (Forbes)
  6. Inside an Abandoned Hawaii Hotel That’s Sitting on a $260 Million Piece of Real Estate “When travel photographer Sherry Ott was exploring all the Hawaii Islands in 2015, she left the island of Molokai for last. ‘I knew Molokai was very special. Unlike the other Hawaiian Islands, there is very little tourism on it. It's for people who want to slow down and experience the old Hawaii and its culture,’ she told Business Insider. While staying at the only operating hotel accommodations on the island at the time, she discovered the abandoned Kaluakoi Resort. Its skeletal exterior intrigued her.” (Business Insider)
  7. Simon Property Begins Construction at Denver Outlet “Scheduled to open in the fall of 2018, the project is Colorado's first premium outlet in development. The center is positioned at the intersectionof Interstate 25 and 136 Avenue, and will house around 80 high-end brands and retailers, similar to those found in other Simon Premium Outlets. The center will offer everyday savings of 25-65% on a wide range of outdoor and fitness apparel and footwear, electronics, fashion accessories and home furnishing, among others.” (Nasdaq)
  8. WeWork Pushing Members Out of Chelsea Offices to Expand its Corporate HQ “The $20 billion co-working giant WeWork is pushing members out of its Chelsea location to make room for expanded corporate offices. According to sources, in the last two weeks, WeWork announced it could no longer accommodate the roughly 500 tenants who use the co-working space it runs at 115 West 18th Street. The company also has its headquarters in the building and will convert the co-working facility, which is about 80,000 square feet according to CoStar, into additional room for its own offices.” (Crain’s New York Business)
  9. It Was a Slow Third Quarter for Washington, D.C. Office Market “Payroll employment increased by 67,600 jobs during the 12 months ending August 2017 in the Washington metro - above average but likely not sustainable through the end of the year. The construction pipeline in the Washington metro increased to 12.6 million square feet as of September 2017, a 27.4 percent rise over the past year, primarily due to the District of Columbia expanding its pipeline by 2.2 million square feet.  However, both Carr Properties' project at 7272 Wisconsin Ave. and JBG Smith's 4747 Wisconsin Ave. broke ground this quarter, which swelled the Suburban Maryland pipeline by a combined 660,000 square feet.” (World Property Journal)
  10. Griffin-American REIT Acquires MOB Portfolio “Griffin-American Healthcare REIT IV Inc. acquired the Fairfield County Medical Office Building Portfolio from Trumbull Medical Arts LLC and Stratford Medical Arts LLC. The portfolio encompasses two medical office buildings located in Stratford and Trumbull, Conn. Griffin-American Healthcare REIT IV purchased its first property in June 2016 and has since acquired a portfolio of 30 medical office buildings and senior housing facilities.” (Commercial Property Executive)
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