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.
• City vs. Suburb: The Office Space Choice that Won’t Go Away by Jason Brucella of Reoptimizer.
Key excerpt:
“Rent isn't the only area where moving to the suburbs can save money. Many suburban buildings offer free parking. Whether you pay that cost or your employees pay for their own parking, when the parking is free, someone saves money. Furthermore, cities like New York, Detroit, Denver and St. Louis impose income taxes on businesses, workers or both. Many of them have suburbs that don't impose taxes, saving even more money.”
• U.S. retail sales grew slightly in September by Shopping Centers Today.
Key excerpt:
“‘A later Labor Day weekend drove shoppers to the mall, and back-to-school sales picked up in the beginning of September right when school started,’ said Thomson Reuters analyst Jharonne Martis. About 70 percent of publicly traded retail companies beat Wall Street analysts’ expectations, she added.”
• Analysts See Multifamily Market Remaining Strong for Several More Years by Mark Heschmeyer of CoStar.
Key excerpt:
"If supply growth doesn’t accelerate further, or slows down while developers consider new projects, the current trend could keep vacancies low while bringing rental growth close to or above levels observed during the 2012 peak, according to analysts with CoStar Portfolio Strategy.”
• Trend Talk—the Millennial Takeover by Anna Spiewak of Commercial Property Executive.
Key excerpt:
"And the demands are loud and clear: high ceilings, flexible configurations, sustainable features and open floor plans to encourage collaboration. As for amenities, Millennials favor café/pantry areas, gaming rooms, and multipurpose rooms designed to promote employee health, fitness and focus, explained Scott Spector, principal at the Spector Group, a New York City-based architecture, interior design and planning firm.”
• Drone Technology Might Guide the Next CRE Investment Boom by Robert Carr of National Real Estate Investor.
Key excerpt:
"The Association for Unmanned Vehicle Systems International (AUVSI) predicts that drone production will grow to $82.1 billion and more than 100,000 jobs across the country by 2025, assuming that the Federal Aviation Administration (FAA) cooperates. The FAA is still working on complete rules for drones, with full publication not expected until at least next year. Even with full rules not yet in place, the FAA has granted more than 1,000 exceptions that allow current drone use for agricultural, businesses and law enforcement purposes.”