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 Shopping Over Thanksgiving Weekend, But Less Bought; Construction Spending Edges Up by Dees Stribling of Commercial Property Executive.
“The National Retail Federation reported on Sunday that more than 141 million Americans did some kind of shopping over the Thanksgiving holiday (Thursday to Sunday), compared with 139 million over the same period last year. Despite that, spending was down a bit, with shoppers parting with an average of $407.02 from Thursday through Sunday this year, down from $423.55 last year. The organization chalked up the difference to lower retail prices, and the fact that many holiday shoppers started shopping before Thanksgiving, which the calendar put as late as possible this year.”
• The Beginning of the End for the Apartment Pricing Boom? by Mark Hickey of CoStar.
“So as development continues in 2014 and 2015, what happens if REITs become less active buyers? Prices will likely fall unless another type of investor picks up the slack.
Given the amount of construction coming on line, prices could decline even if REITs maintain their current level of buying activity. These factors are not only likely to affect pricing for newer buildings, but pose a pricing risk across the entire apartment market.”
• Averting Showrooming's Scrooge Effect by Jeff Mariola for Shopping Center Business.
“While I applaud retailers' recognition that mobile technology is here to stay and for building a strategy they can use to their advantage, they are embracing short-term solutions at best. Just as Ebenezer Scrooge clung to his tight-fisted and greedy ways before he was enlightened, retailers and manufacturers need to embrace new methodologies and practices to combat showrooming, as price matching may have a negative impact on everyone in the purchase stream, not just the retailer.”
• Turning Vacant New York City Office Space Into A Fun Pop-Up Hotel by Adele Peters of Fast Co.Exist
“The pop-up hotel is designed to be built from a kit of parts neatly packed in boxes that are perfectly sized to fit on a standard pallet and just the right height to go on an elevator. Inside the color-coded boxes is everything needed to build different types of hotel rooms, dining areas, reception areas, and even event spaces. Someone running a pop-up hotel can customize and order the components needed from a menu of options and quickly set up an entire space.”
• Commercial Real Estate Lenders Reaching, or Exceeding, 2013 Expectations by Michael Stoler of Commercial Observer.
“One of the questions on the minds of many in attendance at [year-end holiday parties] this year will no doubt be whether the financial institutions have reached or exceeded their goals in providing funding for real estate transactions. One thing is certain: CMBS investment bankers have exceeded last year’s output, yet it is not certain if the Wall Street shops will reach $100 billion in gross lending. There are also the traditional savings and commercial banks, mortgage REITs, private equity funds and insurance companies, as well as new players in town who joined and/or increased their volume of financing this year.”