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.
• Fundamentals Remain Strong for U.S. Real Estate by Kevin Brass of National Real Estate Investor.
Key excerpt:
"Although growth is slowing, all the commercial real estate sectors will post double-digit returns in 2015, the analysts polled for the “Consensus Forecast” said. The industrial sector is expected to report returns of 13.0 percent, with retail closer to 12.2 percent and office at 11.6 percent.”
• Rents Continue Skyward, and There's no Sign of Slowing on Horizon by Diana Olick of NBC News.
Key excerpt:
"Annual rent growth in September was 5.2 percent, the highest since 2011 and the eighth-straight month the rate has been 5 percent or higher, according to Axiometrics, an apartment research firm. Annual rent growth was at 4.1 percent a year ago, which was still considered high.”
• Optimizing Real Estate Space Use through Technology by Susan Persin of Urban Land Magazine.
Key excerpt:
"In the office sector, technology has changed where and how people work. Tech companies have reinvented office space, making what many consider to be better use of the resource. Their practice of putting more people in less space, while making the space functional and fun, has been adopted by many other office users. Because businesses and technology evolve much faster than real estate, however, design flexibility is critical for new buildings. In addition to creating efficiencies by using less space per worker, businesses like WeWork and PivotDesk offer platforms that make it possible to keep workstations more fully occupied.”
• What to Know About Updating Office Assets by Carrie Rossenfeld of Globe St.
Key excerpt:
"'Sustainability is definitely an important topic for tenants,” agrees Brian Harnetiaux, VP of asset management for investment and development firm McCarthy Cook. He tells GlobeSt.com, 'New technologies will continue to be developed, so it is important to adopt new technologies. However, I believe a key element is how the buildings are managed. Owners/managers need to be flexible and creative.’”
• Technology’s Impact on Retail Space by Keith Loria of Commercial Property Executive.
Key excerpt:
"A noteworthy revelation from the survey showed that same-day delivery options, as well as delivery convenience options such as Amazon Dash push-to-buy buttons, are transforming online shopping habits and engraining the expectation of retail convenience. Data shows that 50 percent of U.S. adults are more likely to make a purchase online if there is a same-day delivery option, and 40 percent expect this option to be available when shopping online."