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.
• The Emergence of New Retail Models in Urban Environments by Adriana Pop of Multi-Housing News.
Key excerpt:
“Transient retail spaces may also be very attractive to consumers when they are used for the clearance of wholesalers’ stocks, offering lower prices than most standard stores.
For retailers, the seasonal effect of this model also brings savings. For instance, it may be cheaper for an entrepreneur to open several temporary toy stores in various malls around Christmas than to have one store or two open all year round.”
• Out with the New, In with the Old? by Anna Spiewak of Commercial Property Executive.
Key excerpt:
“Sometimes, as with good wine, buildings get better with age. That seems to be the latest consensus from several developers who are turning urban historical buildings into hotels. This trend entails the combination of renovation of obsolete structures with satisfying the need for more lodging in a market-driven hospitality business.
As the hospitality industry vies to capture business and leisure guests, transforming older buildings into distinctive venues is providing a leg up on the competition.”
• Development is Back, But is It Different? by Bill Brown for Shopping Center Business.
Key excerpt:
“The focus for development has shifted, with retailers concentrating on infill locations. Forget the idea that you're going to develop a shopping center where there is projected residential growth in the future. Now, retailers are attracted to infill locations presenting redevelopment opportunities, taking underutilized real estate and putting it to better use.
This repurposing of retail has allowed developers to create more mixed-use centers, because shopping centers aren't just focused on retail anymore. Developers are interested in creating an environment that is walkable and provides a variety of amenities.”
• U.S. Banks Show 6% Y-o-Y Increase in CRE Lending by Mark Heschmeyer of CoStar Group.
Key excerpt:
“The amount of commercial real estate loans on U.S. bank books has swelled by $93.4 billion in the past year, a 6 percent increase and now totals $1.6 trillion.
Banks in the heavily populated states have led the way with the largest dollar volume increases. New York and California banks have added more than $14 billion to their totals; Ohio banks were third with a $9.5 billion increase; Texas, $6.1 billion; and New Jersey and Pennsylvania with $4.8 billion and $4.1 billion growth respectively.”
• All Together Now: Reimagining the Open Office by Trisha Donnally of ULI Magazine.
Key excerpt:
“Open floor plans in workplace environments continue to gain momentum. ‘The last time I remember being on the cusp of a trend or fad was about ten years ago when we began talking about sustainability,’ Jim Young, vice president of corporate facilities, services, and real estate for Marriott International, says of the company’s work on open office floor plans. ‘We’d have meetings and then people would lean in and ask, ‘How long is this going to last?’ And of course now sustainability is a part of life.’”