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:
Atlanta job growth is strong, but tenants’ appetite for expensive offices is not, By Jarred Schenke, Bisnow
Key Excerpt:
“Office rents in Atlanta have been on an upward trajectory, really, for the first time in the metro area’s real estate history. Currently, average rents are more than $23/SF, up 6.4 percent year-over-year in the first quarter, according to Colliers International. Class-A space also saw strong growth, with rents jumping nearly 6 percent to more than $27.50/SF. That figure varies wildly by submarket, and even by project, with the high-tech Midtown office tower Coda seeing asking rents at $50/SF, Ellis said. But that has led to sticker shock among some office tenants.”
Hines teeing up 500K SF spec office at Atlantic Station, By Jarred Schenke, Bisnow
Key Excerpt:
“Hines is expected to go all-spec on a 500K SF office project called Atlantic Yards, connected to Atlantic Station. Hines senior managing director John Heagy said the developer will look to break ground in the second quarter of 2018 on a dual-building project that will use brick instead of the typical steel-and-glass towers seen at Atlantic Station.”
GSU, Carter, reach agreement with Turner Field neighborhoods, By Mark Meltzer, Atlanta Business Chronicle
Key Excerpt:
The plan includes enhancement of safety and security in the area, a pledge to address transportation-related issues in the neighborhoods, a focus on entrepreneurship and economic development, and a commitment to inform residents about employment and business development opportunities.
Nontraded REITs raise lowest volume of capital in 14 years, By Orest Mandzy, Urban Land Institute
Key Excerpt:
“The departure of AR Global Investments from the nontraded real estate investment trust (REIT) world, coupled with uncertainty surrounding substantial pending regulations, has put a sizable damper on the ability of the nontraded REIT sector to raise capital. According to Summit Investment Research, $4.8 billion of equity was raised by sponsors of 35 entities last year. That was the lowest volume in 14 years, and pales in comparison to the $10.2 billion of equity that was raised in 2015.”
Retailers are going bankrupt at a record pace, NREIOnline.com
Key Excerpt:
“In a little over three months, 14 chains have announced they will seek court protection, according to an analysis by S&P Global Market Intelligence, almost surpassing all of 2016. Few retail segments have proven immune as discount shoe-sellers, outdoor goods shops, and consumer electronics retailers have all found themselves headed for reorganization. Meanwhile, America’s retailers are closing stores faster than ever as they try to eliminate a glut of space and shift more business to the web. S&P blamed retailer financial struggles on their inability to adapt to rising pressure from e-commerce.”