10 Must Reads for the CRE Industry Today (September 20, 2016)

10 Must Reads for the CRE Industry Today (September 20, 2016)


  1. Deutsche Bank Was Fined $14 Billion. What Does That Mean for U.S. Commercial Real Estate? “Deutsche Bank shares continued falling Monday, after news broke late last week that the U.S. Department of Justice was fining Germany’s largest lender a whopping $14 billion to settle claims over its issuance of residential mortgage-backed securities in the lead-up to the 2008 financial crisis. The shares dropped 2.6% in Frankfurt trading Monday and were 0.4% lower at 2:03 p.m., Bloomberg reported, bringing the loss for the year to 47%.” (Forbes)
  2. Exploring Alternative Real Estate Investments with Your Clients “In my experience, for everyday investors, investing directly in multiple residential or commercial properties isn’t always the best option. In fact, if you’re advising clients on how to diversify their portfolios with alternative assets that include real estate, Real Estate Investment Trusts (REIT) and real estate funds are good alternative investment channels that will allow their portfolios to be indirectly invested in property. I look at real estate funds for investors as ‘arm chair’ investments as there is no management requirement and no surprise maintenance issues.” (WealthManagement.com)
  3. If Donald Trump is Such a Great Builder, Why Aren’t Other Builders Backing Him? “If Donald Trump really is such a great builder, why isn’t he getting more support from other people in the industry? The construction and engineering trades are hardly famous hangouts for liberals anyway. You’d figure they’d lean right in any election year. And here is a guy in their actual industry, promising to throw tons of work their way. You’d think they’d be lining up behind him. Oops.” (MarketWatch)
  4. The Contrarian Signal in the REIT Breakout “For the first time since 1999, the Standard & Poor's 500 Index is being reconfigured. The last time was when technology was established as an independent sector. The current reconstitution of the S&P 500 involves breaking out real estate investment trusts (REITs) from the financial industry group. This is worth paying attention to, given how rarely these sorts of structural changes occur. Because of the unique characteristics of REITs -- most income is passed through tax-free as dividends -- it makes sense to categorize REITs separately from banks and brokerages.” (Bloomberg)
  5. Here’s Where Uber Plans to Open a New Facility Soon “With ambitions of self-driving cars, Uber is headed to Motor City. On Monday, Sherif Marakby, the ride-hailing company’s vice president of global vehicle programs, announced that Uber will be opening a facility in the Detroit area ‘in the coming months,’ according to the Detroit News. The company hopes a presence in Detroit will help it work more closely with automakers and suppliers in the area.” (Fortune)
  6. Shaping a Neighborhood’s Destiny from the Shadows “At a time when New York City couldn't afford to maintain its parks, no new police officers were being hired and the number of workers on sanitation trucks was reduced to two from three, Biederman persuaded a group of midtown business leaders to take control of their neighborhood by pooling private funds to clean and restore the park and help rekindle a sense of law and order. In 1980, the Bryant Park Restoration Corp. was born, providing the blueprint for a series of business improvement districts—BIDs—that would help revitalize some of the city's sketchiest neighborhoods over the ensuing decades.” (Crain’s New York Business)
  7. Why Sears Going Out of Business Would Be Amazing News for J.C. Penney “J.C. Penney may be the biggest beneficiary from what is shaping up to be the eventual disappearance of Sears from malls across the country. Filings from mall owner Simon Property Group show there are about 59 properties that count both Sears and J.C. Penney as anchor tenants, or about 55% of the 108 malls Simon operates, according to a review by TheStreet. For General Growth Properties, 54 of the 131 malls it runs count Sears and J.C. Penney as anchors, or about 41%, according to TheStreet's findings.” (The Street)
  8. Jamestown Picks Up Watertown’s 88 Leonard Street in Tribeca for about $240M “Jamestown has acquired 88 Leonard Street from Waterton Associates in Tribeca for close to $240 million, Commercial Observer has learned. The 21-story 305,155-square-foot Costas Kondylis-designed residential rental building between Broadway and Church Street includes 352 apartments, 11,365 square feet of ground-floor retail and an attached 249-stall below-grade parking garage.” (Commercial Observer)
  9. One in Four Real Estate Deals in Philly Area is a Restaurant “Driven by demand, a younger clientele, and a challenged retail landscape, restaurants are powering many of the region's real estate deals. One in four commercial real estate transactions these days is for a spot to eat and drink. From trendy, chef-driven venues in Center City to outposts of national brands at suburban shopping centers and malls, restaurants have become go-to tenants, filling new spaces and former anchor stores and providing landlords with often-higher and more reliable rents.” (Philly.com)
  10. Duke Realty Signs 1.4 MSF Savannah Deal “Duke Realty Corp.’s standing as the largest industrial/warehouse owner in Savannah gets reinforced with the industrial and medical office REIT’s agreement to develop a build-to-suit distribution center for Floor & Decor. The hard surface flooring retailer will lease the 1.4 million-square-foot property from Duke Realty. Atlanta-based Floor & Decor will occupy the facility under a long-term lease orchestrated on its behalf by commercial real estate services firm CBRE.” (Commercial Property Executive)
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