Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to six stories that caught our eyes in recent days:
Five Trends Affecting Commercial Real Estate: Looking Ahead to 2017, By David J. Lynn, Ph.D. and Peter Burley, NREIOnline
Key Excerpt:
“The U.S. Federal Reserve made it clear last December that the central bank sees U.S. growth as relatively stable, notching the federal funds rate higher by a quarter point. Nevertheless, underlying inflation is extremely tame in the U.S. and in major emerging markets (with worries of deflation in some sectors and countries), providing no impetus for significantly higher rates.”
REIT IPOs: Time for a Comeback?, By Susan Persin, Urban Land Institute
Key Excerpt:
“In addition, the Internal Revenue Service issued regulations in June that clamped down on tax-free REIT spin-offs that were a significant source of growth for specialty REITs. Among the traditional real estate sectors, it is difficult to make a case for a new REIT, when existing REITs offer a track record of solid performance.”
U.S. Commercial, Multifamily Mortgage Debt Hits $2.9 Trillion in Mid 2016, By Michael Gerrity, World Property Journal
Key Excerpt:
“Total commercial/multifamily debt outstanding rose 1.4 percent over the first quarter of 2016 to $2.90 trillion at the end of the second quarter. Multifamily mortgage debt outstanding rose to $1.09 trillion, an increase of $27.6 billion, or 2.6 percent, from the first quarter of 2016.”
Six Factors to Consider When Selecting a Retail Location, By Robert Caperton, Shopping Center Business
Key Excerpt:
“Whether you’re looking for your first home as a business, or seeking larger accommodations after outgrowing a previous space, looking for a retail location is a momentous occasion. It’s a signifier of success, and it holds high expectations as the space that will house your biggest goals and achievements.”
As Japan’s National Economy Struggles Under Stringent Banking Policy, Japanese Investors Binge on Trusts Investing in US REITs, By Mark Heschmeyer, CoStar
Key Excerpt:
“The Bank of Japan’s persistent negative interest-rate policy has triggered the movement of an increasing amount of Japanese capital into high-dividend Japanese REIT (JREITs) funds, which in turn are investing heavily in U.S. REITs, according to analysis from Morgan Stanley MUFG Securities Co. The report notes that a number of such trusts are paying double-digit dividend yields and the amount of investor funds flowing into JREITs has risen 400% over the past eight months.”