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.
• More Than Half of U.S. Renters With Expiring Leases in October Renewed by Brian Croce of Multifamily Executive.
"Of all expiring leases in October, 52.2 percent were renewed, according to an MPF Research analysis of lease transaction data from Carrollton, Texas–based parent company RealPage. That rate was up 0.2 percentage points from October 2014, continuing a 29-month trend of year-over-year increases in retention rates. These figures exclude designated low-income housing."
• What’s Behind Multifamily Investors’ Renewed Activity by Bendix Anderson of National Real Estate Investor.
"That’s a big bump up for the month before. After rising steadily through the spring and summer, the volume of apartment trades closed in September fell 7 percent compared to the year before. 'We got into a summer slowdown,' says [Jim] Costello. Global economic problems and a string a weak job reports in the U.S. worried investors. The Federal Reserve delayed raising its benchmark interest rates. Much of that uncertainty has evaporated with the autumn, with less bad news out of China and better news from the U.S. economy."
• Interest Picks Up in Medical Retail by Brian J. Rogal of Globe St.
"The median price for net lease medical properties in the third quarter was about $2.5 million, putting most within reach of the average 1031 buyers who traditionally purchase net retail assets. And as these properties proliferate, it gives buyers an opportunity to diversify their portfolios. 'Everyone is already pretty heavily into dollar stores, drug stores and auto parts stores,' [Randy] Blankstein says."
• Where Rich Chinese Are Stashing Their Cash: America’s Hotels and Strip Malls by Craig Karmin of the Wall Street Journal.
"China has been the largest foreign holder of U.S. Treasurys since 2008, but more recently its buying interest in the U.S. has spread to Chinese companies and wealthy individuals. A Chinese insurer earlier this year paid $1.95 billion for New York’s Waldorf Astoria hotel—a record price for a U.S. hotel sale—after Chinese regulators relaxed rules for big insurers investing in overseas real estate."
• Retail Brick-And-Mortar Construction Making a Comeback by Aisha Carter of Bisnow.
"Vacancy rates have fallen 120 basis points in the last two years, and [James] Cook anticipates vacancies will remain low through 2016. 2015 should see 82 million square feet of retail space delivered, with stand-alone retail buildings, small neighborhood centers, and grocery and power centers accounting for 76 percent of the space under construction."