Co-Living grows up: Scrappy startups preparing to disrupt housing on massive scale, By Ethan Rothstein, Bisnow
“As the country’s growing need for affordable housing coincides with its oversupplied rental market, co-living has emerged as a possible bridge for that fundamental divide, and it could shake the multitrillion-dollar housing industry to its core.”
Suburban rentals are outpacing cities nationwide, and Atlanta is leading the way, By Jarred Schenke, Bisnow
“From 2011 to 2015, Atlanta’s suburbs gained 52,300 rental households, a 26 percent increase over the previous five-year period. During the same time, the urban core gained 15,100 renters, a 10 percent increase, according to a RentCafé report. During that time, Atlanta saw nearly 15,000 apartment units delivered into the market, according to RentCafé. Of those, more than 12,700 units were developed inside Interstate 285, especially in Buckhead and Midtown, according to Haddow & Co. RentCafé’s definition of urban includes not only Atlanta, but also Marietta, Roswell, Sandy Springs and Alpharetta. The rest of the metro area is considered suburban.”
Office REITs face oversupply in key markets, shift to secondary markets elsewhere, By Karina Estrella, Urban Land Institute
“As job growth in the professional services sector has increased substantially over the past several years, office real estate investment trusts (REITs) have benefited from strong leasing fundamentals. However, more office construction and oversupply concentrated in major metro areas such as New York City, Houston, and Washington, D.C., continue to concern those in the market. According to the D.C.-based National Association of Real Estate Investment Trusts, the 24 office REITs posted –0.43 percent in total returns in April, but are up 1.17 percent for 2017 year-to-date. Several of these office REITs hold assets concentrated in a single market, such as Manhattan or D.C. This may have contributed to –4.34 percent in first-quarter earnings for office REITs.”
Sports, venues call downtown home, By Doug Deloach, Atlanta Business Chronicle
“Although the city is bereft of a National Hockey League franchise and the Atlanta Braves have thrown out the first ball in SunTrust Park just up the interstate, the rest of the big leaguers are looking forward to entertaining tens of thousands of guests in brand new or soon-to-be-refurbished environs in the heart of the downtown submarket.”
Economy watch: Consumers still fairly optimistic, By Dees Stribling, Commercial Property Executive
“More favorable income gains and low inflation contributed to consumers expressing the most favorable real income expectations in a dozen years, which might mean better times for retail stores. Personal consumption expenditures are expected to advance about 2.3 percent in 2017.”
Store closing data looks foreboding for malls, By Elaine Misonzhnik, NREIOnline.com
“Fung Global researchers found that year-to-date in 2017, store closing announcements in the U.S. increased by 97 percent year-over-year, to 3,296 locations. The majority of retailers closing stores are typical mall tenants—department store operators and apparel and electronics sellers. The chains with the highest number of announced store closings, for example, include apparel retailer Rue 21 and shoe seller Payless Inc., each with 400 closings apiece. Apparel chain The Limited comes in third, with 250 announced store closings.”