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10 Must Reads for the CRE Industry Today (September 11, 2017)

U.S. real estate might be getting too pricey for foreign buyers, notes Mortgage Professional America. Nordstrom is launching a new store concept, reports MarketWatch. These are among today’s must reads from around the commercial real estate industry.

Fed’s Dudley: Hurricanes Will Boost Economic Activity over the Long Run “Hurricanes Harvey and Irma actually will lead to increased economic activity over the long run, New York Fed President William Dudley said in an interview. Speaking just as Irma is about to start battering Florida as a Category 4 storm, Dudley said the initial impact in both human and economic costs will be harmful. But in the long run, economies tend to snap back from such major events.” (CNBC)

U.S. Property Too Expensive for Foreign Investors Says Study “Foreign investment in US real estate has shown a marked decrease since the start of July according to a new report. Convercy CMO says that although the US real estate market is still one of the most attractive for international buyers the booming property prices is deterring many foreign investors. ‘Some say the slowdown is related to the summer vacation period. However, I believe the explanation for June’s slowdown is the recent residential house price increase,’ said Gidon Jablonka, Covercy CMO.” (Mortgage Professional America)

Nordstrom Launching Smaller ‘Local’ Stores with Access to Stylists “Nordstrom Inc. said Monday that it is launching Nordstrom Local on October 3, a smaller shop that will have no dedicated inventory, but instead provide a variety of services including personal stylists. Trunk Club, Nordstrom's personal styling company, will provide their services as well. The launch will be in West Hollywood, and Nordstrom Local will be 3,000 square feet with a styling suite and eight dressing rooms, far smaller than the average 140,000-square-foot store.” (MarketWatch)

Seven Things to Consider Before Buying an Investment Rental Property “Although it is possible to make money in real estate, there's more to it than purchasing the first decent house you see. Remember, TV shows about flipping houses and investing in real estate depict a reality that's far from what truly occurs in real life. If you're interested in owning a rental property, make sure to consider these seven factors first.” (Forbes)

Building Boom Puts Millions in Irma’s Path “Hurricane Irma’s turn up the west coast of Florida imperiled a region that has undergone major development in recent decades, from wealthy enclaves such as Naples to middle-class subdivisions in Tampa Bay and nearby Pinellas County. Like many parts of Florida, parts of Tampa are built on filled-in marshland. Many homes, apartment buildings and even a major trauma center are close to sea level.” (Wall Street Journal, subscription required)

A Foolish Take: Commercial Real Estate Loans Show Signs of Stress “The commercial real estate market has benefited from eight years of expansion since the financial crisis, but there's reason to believe that this run could be coming to an end. Data from Trepp, a company that tracks data on the performance of securitized mortgages, shows that the delinquency rate on commercial real estate loans is on the rise. In July 2016, Trepp estimated that 4.76% of securitized commercial real estate loans were 30 days or more past due on payments.” (USA Today)

Rent Growth Moderates, Demand Persists in Boston “Above-trend population gains and increasing job growth continue to make Boston one of the most stable multifamily markets in the U.S. Although rent gains have fallen to 2.3% year-over-year through June, demand remains healthy, supported by highly skilled workers, who are increasingly drawn to the metro’s reputation as a regional powerhouse and global innovation hub.” (Commercial Property Executive)

Healthcare to Drive Property Investment, JLL Says “Demand for hospitals and healthcare facilities is increasing across the Middle East and North Africa (Mena) region, increasing their prospects of attracting more private investment as governments look to ease public spending, JLL said. Property developers in the MENA region are continuously looking at alternative asset classes. Health care is under-developed relative to an ageing and increasing population in the region coupled. That in conjunction with the rise in medical tourism present investment opportunities for developers.” (The National)

Town Center Owner Says Loan Default Won’t Lead to Mall Closure “A representative from Forest City Enterprises, the Cleveland-based company responsible for managing the Charleston Town Center mall, said the mall’s customers should not be concerned over the impending default on a loan taken out by the mall’s owners. Jeff Linton, a spokesperson for Forest City, said the default will not affect the mall’s customers or retailers who lease space at the mall. ‘It does not mean the mall is going to close,’ Linton said.” (Charleston Gazette-Mail)

Financing in Place for 800 KSF Baltimore Mixed-Use Tower “The lending community is looking favorably upon One Light Street, a mixed-use project in downtown Baltimore. Developer Madison Marquette recently obtained $169 million in financing for the 800,000-square-foot building, which has been under construction since January 2017. Natixis acted as lead arranger and administrative agent on a $125 million senior loan for One Light Street, the construction of which commenced in January 2017, with M&T Bank and CIT as participants.” (Commercial Property Executive)

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