Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to four stories that caught our eyes in recent days.
• TPG Group to Acquire Cassidy Turley, Rebrand As DTZ by Randyl Drummer of CoStar.
Key excerpt:
“Confirming rumors and reports that have been floating around the industry for several weeks, a group led by private-equity giant TPG Capital has agreed to acquire U.S.-based Cassidy Turley and combine it with its previous acquisition target DTZ to form what could become the world’s third-largest CRE services company.
Cassidy Turley agreed to sell the company to an affiliate of DTZ Investment Holdings, a consortium backed by TPG, PAG Asia Capital and Ontario Teachers’ Pension Plan, which struck a deal in June to acquire DTZ from Australia-based UGL for $1.15 billion.”
• U.S. Commercial Debt Closings Up Sharply in 2014 by Michael Gerrity of World Property Channel.
Key excerpt:
“Banks were again the most active commercial lenders during Q2 2014, accounting for close to one-third of commercial originations, ahead of life companies and CMBS insurers by a significant margin. The re-emergence of banks as primary lenders has been supported by several factors, including lower commercial loan delinquency rates, higher levels of liquidity and a gradual loosening of credit standards.”
• Optimism and Opportunity on a Global Scale for Industrial REITs by Michele Lerner of REIT.com.
Key excerpt:
“As an asset class, the industrial sector is focused around distribution centers whose tenants are global, such as Amazon, says Scott Crowe, managing director and global portfolio manager for Resource Real Estate.
‘Right now, these industrial REITs are responding to the redesigned supply chain and the need for more efficient assets and automation,’ he says. ‘We came out of this recession with a different economy, with technologies emerging that change where people work and how they live. We haven’t had a change on the supply side for 20 years, so the industrial sector is in the midst of addressing that.’”
• Banks Seeing Lower Loss Rates on Commercial Real Estate by Mary Ellen Biery of Huffington Post.
Key excerpt:
“Data from Sageworks, a financial information company, show that net charge-offs for commercial real estate loans (non-farm, non-residential) were 0.16 percent of average loan balances in the most recent quarter. This is down from 0.9 percent at the end of 2009 and 13 basis points below June 2013 quarter rates. Loss rates for construction and land development loans have fallen from 3.58 percent of average loan balances in December 2009 to 0.24 percent in the most recent quarter.”