Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to five stories that caught our eyes in recent days.
- Office Markets in Tech-Heavy Cities Lead 2015 Pack by Eliot Brown of The Wall Street Journal.
Key excerpt:
“As has been true for the past few years, the top-performing markets tended to be those where tech companies are fast-expanding. The San Jose, Calif., area, which includes Silicon Valley, saw rents sought by landlords jump 7.2 percent over the previous year to $28.03 a square foot, the fastest rent growth in the country. There, mature technology companies have been adding employees at a rapid clip.”
- The Top Rent Growth Markets of the First Quarter by Lindsay Machak of Multifamily Executive.
Key excerpt:
“As developers scramble to keep up with demand, occupancies continue to climb with the rate reaching 95.4 percent in the first quarter, about 10 basis points (bps) above the preceding quarter and 40 bps year over year. Availability is particularly limited in the mid-prices and affordable properties, the report notes, since the bulk of new deliveries are at the upper end of the price spectrum.”
- From the Milky Way to Midtown, A New Way to See a City by Anna Spiewak of Commercial Property Executive.
Key excerpt:
“At a first-of-its-kind “urban observatory” created by NYU’s Center for Urban Science and Progress, a special high-tech camera captures aspects of building performance that are invisible to the naked eye, such as heat leaks, energy efficiency and insulation. Though the project is still in the demonstration phase, it is expected to yield insights about building performance and urban life that will benefit both the public and private sectors.”
- New Investors Enter Seniors Housing Sector as ROI Blossoms by Robert Carr of National Real Estate Investor.
Key excerpt:
“Brian Murdy, vice president and national director in Marcus & Millichap’s seniors housing group, says that strong fundamentals have resulted in a wave of new investors entering the seniors housing sector. Most are entering to take advantage of higher expected returns in this sector as compared to traditional multifamily properties.
‘The focus is primarily on independent and assisted living, which operates closer to traditional multifamily and is easier for these investors to understand,’ Murdy says. ‘Interestingly, I have spoken with several investors recently regarding interest in skilled nursing facilities, as they look for investments with even higher returns.’”
- U.S. Shopping Center Occupancy Rates Hit 6-Year High in 2014, According to ICSC and NCREIF Data by ICSC.
Key excerpt:
“Shopping center base rents rose 6.5 percent year-over-year in 2014, the third consecutive annual gain and the strongest level since 2008. For the mall segment, base rents rose 17.2 percent in 2014, marking the strongest annual gain since ICSC and NCREIF began tracking the data series in 2000; and increased 15.3 percent in Q4 2014 year-over-year, making it the fifth consecutive quarter with a double-digit gain.”