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.
• Economy Watch: More Challenges Ahead for Physical Retail by Dees Stribling for Commercial Property Executive.
Key Excerpt:
“The nuance of the matter is that e-commerce isn’t going to threaten all retail sectors equally, or even some much at all. As destinations, many malls still have staying power, and so do many stores. Moreover, shopping is a social activity that transcends mere economic utility.”
• How Net-Lease Developers Can Succeed in Our Competitive Financial Markets by Zack Markwell for Shopping Center Business.
Key Excerpt:
“Developers are forced to take increasingly higher risks in pricing build-to-suit projects on the front end, as cap rates reach all-time lows. However, developers can successfully seek and execute new development business without having to risk more of their capital by pushing much of the risk to experienced capital providers.”
• Why I’m Optimistic About CRE For the Next Few Years by David J. Lynn, Ph.D. of National Real Estate Investor.
Key Excerpt:
“Real estate has been a star performer over the last five years, delivering high returns on the back of strong and improving fundamentals and a gradually recovering economy. Real estate fundamentals continue to improve. Balance sheets of most firms have been steadily strengthening, with increasing margins, profitability and top line growth. Most households have recovered their lost wealth and are attaining new highs.”
• Choosing Between People and Numbers by John Wilhoit Jr. for Multifamily Biz.
Key Excerpt:
“In the property management business numbers are important, but people more so. Getting the people right is a huge step in making the numbers work and being able to implement your plan of action by having the right skills in the right positions.”
• Lacking down payments and job security, more young adults renting for years before buying home by Josh Boak for U.S. News & World Reports.
Key Excerpt:
“Home ownership, that celebrated hallmark of the American dream, is increasingly on hold for younger Americans. Short of cash, burdened by student debt and unsettled in their careers, young adults are biding time in apartments for longer periods and buying their first homes later in life.”