June 13, 2018

Multifamily Builders, Developers in U.S. Remain Positive as Demand Continues…AND MORE

Multifamily Builders, Developers in U.S. Remain Positive as Demand Continues, by Michael Gerrity, World Property Journal

According to the National Association of Home Builders, confidence in the U.S. multifamily housing market remained positive in the first quarter of 2018. The MPI remained unchanged from last quarter, coming in at a reading of 53, while the MVI remained essentially unchanged at 42. The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse. ‘Multifamily builders and developers are reporting solid demand around the country, as shown in the vacancy rate for the first quarter,” said Steve Lawson, chairman of NAHB’s Multifamily Council. “We anticipate steady demand through the rest of the year as household formations continue to grow.'”


Restaurants Feeling The Squeeze On Traffic And Sales, Especially Midpriced Chains, by Dees Stribling, Bisnow

“Chain restaurants, especially those that occupy the middle ground between fast food and upscale dining, face an uphill battle as consumer tastes change. Part of that battle, it turns out, involves building traffic any way they can. The entirety of the restaurant industry is feeling pinched, despite a strong U.S. economy. Same-store traffic in the industry dipped 2.9% year over year in May, which also represented an annual 1.5% drop from April, Restaurant News reports. Traffic growth year-to-date is down 2.5%, which is a bit better than the 3.2% drop for the same period in each of the previous two years. ‘The underlying issues of restaurant oversupply and increased competition from outside the chain restaurant sector still prevail and will likely haunt the industry for the rest of the year,’ TDn2K reports.”


What’s In A Name? How And Why Landlords Rebrand Their Buildings, by Jarred Schenke, Bisnow

A year after buying a nondescript office building in Midtown Atlanta, John Courey decided it was time for a change. After the founder of New York-based investment firm Crestlight Capital purchased the 11-story 730 Peachtree, he pumped $6M into major renovations that include a new lobby and common area with suspension swings, space for a bar and restaurant and a third-floor social hub. The last big change to 730 Peachtree is its name. ‘It’s kind of a tired building that no one really knows about,” Courey said. “We want to re-energize it and reintroduce it as one of the coolest creative-type buildings in all of Midtown.’ Changing the name of a building can also help a landlord focus its branding toward a specific audience, ML Jordan CEO Jordan Lipsey said. ML Jordan is a marketing firm that specializes in working with commercial real estate firms. Lipsey said he has seen a trend of firms rebranding to appeal more toward technology tenants. ‘They see a tilt or a change in the demographic or consumer that they’re trying to attract for that particular type of property,’ he said.”


Why Multi-Story Industrial Assets Might Be in the Future for Dense U.S. Cities, by Patricia Kirk, National Real Estate Investor

“Dense urban markets where land zoned for industrial is in short supply and property values are at a premium are candidates for vertical warehouse construction, industrial brokers say. Multi-story warehouses are already common in Asia, but the concept is now taking off in supply-constrained American cities. Four multilevel projects are currently under construction or will soon break ground in Seattle, San Francisco and New York City, and many more planned projects will be announced in the coming months, according to Rob Kossar, vice chairman and head of the Northeast industrial region at real estate services firm JLL. ‘This is a deep trend, and it’s not going away,’ says Kossar, whose team is charged with leasing and managing the two New York projects, both of which will break ground by the end of 2018/first quarter of 2019.”

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