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.
• "Non-Gateway
Office Markets May Be Worthy of Closer Look" by Sarah Borchersen-Keto
of REIT.com.
Key excerpt:
“In
an interview with REIT.com, Christopher Macke, senior strategist at CBRE Global
Research and Consulting, said he believes investors should reexamine perceived
notions about non-gateway office markets, especially since the discount on
non-gateway property has been nearly 20 percent at times since the fourth
quarter of 2007 … Attitudes toward non-gateway markets that were forged during
the overbuilding of the 1980s have been hard to shake, he said. Many investors
continue to believe that these markets are more volatile and unstable than
their gateway counterparts, according to Macke.”
• "Retail,
Industrial Sectors Poised for New Development" by Brittany Biddy of
REBusinessOnline.com.
Key excerpt:
“Rising construction
costs and a shortage of labor are slowing the progress and timeline of new
commercial real estate development, despite demand for new space in some
property sectors …Because
rents are simultaneously increasing with construction costs, the panelists
agreed that the only two types of development that will substantiate those rent
increases are e-commerce distribution facilities and experiential retail
projects.”
• "Capital
Markets: As CRE Prices Improve, So Do Sizeable REO Dispositions" by Mark
Heschmeyer of CoStar.
Key excerpt:
“The
U.S. CMBS delinquency rate continued its steady decline last month as banks
continue to take advantage of higher prices for commercial property and unload
large REO dispositions, according to the latest index results from Fitch
Ratings.CMBS delinquencies should continue to move lower as commercial property assets
become REO, are repriced and disposed of, Fitch noted. In fact, the percentage
of REO assets in Fitch Ratings’ delinquency index exceeded 50 percent for the
first time in the index’s history last month. This compares with 37 percent one
year ago.”
• "Signs
of Confidence in U.S. Office Space" by Francys Vallecillo of World Property
Channel.
Key excerpt:
“Confidence in the U.S. office market is building, boosted by strong results in
many cities.
During the third quarter, the nation's office market recorded a rent growth of
1.4 percent, the highest quarterly jump of the recovery, annualizing at a rate
of 5.6 percent, according to a new market report from Jones Lang LaSalle.”
• "Five
Essentials for a Green Community" by Lindsay Machak of Multifamily
Executive.
Key excerpt:
“Gauging what
residents want and need in a green community is tough. Some residents want
solar panels while others prefer to focus on water conservation.A survey conducted by
Strata Research earlier this year found that 77 percent of renters felt green
apartments were important. The survey took responses from more than 1,000
renters and was conducted in partnership with HD Supply.”