Each Wednesday, The Wrap presents a compilation of recent
noteworthy commercial real estate stories from a variety of publications. Below
are five stories that caught our eyes in recent days.
• “Resort
Rebound: Sector Makes Up Highest Portion of U.S. Hotel Sales” from
REBusinessOnline.com.
The U.S. resort sector is in the midst of a strong comeback,
accounting for 18.4 percent of total investment transaction volume in the
hospitality sector so far in 2013, according to this article.
The lack of new development, driven by a number of factors,
is pushing down cap rates on existing successful properties, Art Adler,
Americas CEO of Jones Lang LaSalle’s hotels and hospitality group, told
REBusinessOnline.com.
“The steady improvement in the market will result in a
lengthier and more robust up-cycle, providing new owners with a significant
runway of strong operating performance,” Adler said.
• “Designing
Student Housing a Challenge” by Carrie Rossenfeld of Globe St.
Designing student housing involves different challenges when
compared to traditional multifamily projects, David Senden,
principal with KTGY Group Inc., told
Globe St.
“It means considering everything, from
how the common wall between rooms is constructed in order to ensure privacy to
how several individuals share a pantry,” he said. “How should you heat hot
water if four people will be getting ready for the day at the same time, each
in their own bathroom? It’s just different — and that’s just the unit.”
Aesthetics also are a particular concern
of developers, who are trying to create a youthful, fresh project that lends
itself to the collegiate experience, Senden said.
• “Commercial
Real Estate Lending Expected to Remain Buoyant” by Sarah Borchersen-Keto
of REIT.com.
“Banks’ reengagement with commercial
real estate investors showed no signs of a slowdown in the third quarter,” writes
Borchersen-Keto.
According to the article, “71 percent
of national and regional banks with significant commercial real estate exposure
increased net lending in the last year.”
As an increasing number of banks lend
to a broader range of borrowers, Sam Chandan, president and chief economist at
Chandan Economics, anticipates an influence on underwriting. “There are more
people in this market right now, and that is having a definite impact on what
we see happening with underwriting standards,” Chandan said.
• “Will
CBD Investments Continue to Be the Center of Attention?” by Luis Mejia of
Multifamily Executive.
Apartments located in central business districts (CBDs) have
remained popular among investors in recent years. Now, however, “the
question is, if supply keeps flowing or the overall apartment market slows
down, will CBDs continue to attract investors?” writes Mejia.
The percentage of apartment sales
involving CBD assets has risen throughout the recovery, from 13 percent in the
fourth quarter of 2009 to nearly 20 percent in the second quarter of 2013,
according to CoStar data cited by Mejia.
Several risks, including the growing
amount of new supply and the deceleration in total CBD investment activity,
which can impact cap rates and values, create uncertainty, Mejia says. “But
going into 2014, CBD apartments seem to be on track to account again for a
growing share of multifamily sales,” he adds.
• “Shop.org:
Holiday Online Sales to Jump 13 to 15 Percent”
by Dan Berthiaume of Chain Store Age.
The National Retail Federation is
predicting that online retail sales will grow by about 15 percent this holiday
season when compared to last year’s, Chain Store Age reports. Such a rise would
result in total online retail sales of approximately $82 billion, according to
the magazine.
“Online and mobile continue to be a
leading area of growth for retailers. In this economy, savvy, cost-conscious
consumers go to the Web to do their research and get the best bang for their
buck,” Matthew Shay, president and CEO of the National Retail Federation, told
Chain Store Age.