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.
• Robust Leasing, Absorption Drive CRE Price Appreciation by Randyl Drummer of CoStar.
Key Excerpt:
“Robust leasing activity is driving price appreciation across more markets and property types. For the 12 months ended at mid-year 2015, net absorption in office, retail, and industrial properties totaled 575.5 million square feet — a 39.3 percent increase over the same period in 2014 and the highest annual total since 2008.”
• New Keys for Modern Master-Planned Communities by Camilla McLaughlin of Urban Land Magazine.
Key Excerpt:
“Decades ago, a golf course and large clubhouse were centerpieces of any new community, and the location was usually well outside the urban core. Today, new mixed-use communities are just as likely to be urban and are often integral to a city’s revitalization.”
• Boomers Competing With Millennials for U.S. Urban Rental Housing by Victoria Stilwell of Bloomberg.
Key Excerpt:
“The number of renters who are 65 or older will reach 12.2 million by 2030, more than double the level in 2010, according to research by the Urban Institute in Washington. While the millennial generation born after 1980 has driven demand for apartments in recent years, baby boomers — those born from 1946 to 1964 — will be the next wave, pushing up rents and spurring construction of more multifamily housing.”
• Sustainability & Investors Do Go Together by Bryant Nail for Commercial Property Executive.
Key Excerpt:
“The investor’s role in commercial real estate may seem far removed from green building or sustainable property operations, but in truth the critical decision to fund construction or purchase a completed apartment complex, office building or other asset may hinge on the additional value created through sustainable development practices.”
• Urban Institute Predicts Rental Surge Among Millennials, Minorities, Seniors by Bendix Anderson of National Real Estate Investor.
Key Excerpt:
“Many apartment experts think the number of vacant apartments will rise this year, despite strong rent growth this spring. But in the long term, an increasing number of researchers expect the demand for rental apartments to keeping growing for more than a decade.”