Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to four stories that caught our eyes in recent days.
• Crowdfunding Spreads to Hotels as Hard Rock Sells Stakes by Nadja Brandt of Bloomberg.
“Real estate crowdfunding is spreading to the U.S. hotel industry, offering individual investors perks such as room upgrades along with an interest in the property.
The owner of Southern California’s Hard Rock Hotel Palm Springs is selling stakes in the 163-room luxury resort, with investors receiving such benefits as improved bookings, room-rate discounts and free use of a poolside cabana set aside for hotel owners. The offering, which started yesterday, is the first of its kind for an existing hotel, according to online marketplace Realty Mogul and Kittridge Hotels & Resorts LLC, the property’s majority owner.”
• Shopping for … Medical Services? by Anna Spiewak of Commercial Property Executive.
‘“There’s definitely a trend to deliver healthcare where it’s easily accessible in suburban locations. It’s not as convenient for people to go to hospital campuses as it is to local buildings. There’s easier parking and less of an institutional feeling,’ said Barbara Portnoy, founder of PLDA, an interior design firm that specializes in refurbishing space for healthcare use. ‘People feel more comfortable going for healthcare delivery in a local community setting.’”
• Perspectives On Commercial Financing For 2014 by Forbes.com.
“Restaurant industry trends to watch in 2014 include:
- Improved economic data, including resilient consumer spending, rising home prices and continued job creation, suggest sales should increase in 2014. On the cost side, a record corn crop has eased commodity price concerns, although beef prices could remain an issue and labor costs could rise with increases in the minimum wage.
- The most notable growth will continue to come from fast casual brands, which are taking market share. Chipotle, Panera, Five Guys and Jimmy John’s have been among the fastest-growing chains in recent years, and Noodles & Company and Potbelly Sandwich Works went public in 2013 in anticipation of continued growth. In addition, a number of emerging brands have plans to accelerate their new unit development.
The current favorable lending environment will continue into 2014. Large and middle market restaurant companies, as well as franchisees of top-tier brands, will have ready access to capital for acquisitions, remodels and/or new builds. Access to debt financing should continue to improve for smaller companies, but less well-known brands could still find it challenging.”
• Construction Employment Continues to Expand in Many Metro Areas, Data Shows by REBusinessOnline.com.
“Association officials say the fact that many metro areas were adding new jobs was welcome news for the hard-hit construction industry. But they cautioned that many parts of the United States no longer have robust career and technical education programs that once existed across the country and that many firms already report having a difficult time finding skilled workers.”