February 24, 2016

Wednesday Wrap: Feb. 24

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.

• Anchors Aweigh: Malls Lose More Department Store Tenants by WSJ

Key excerpt:

“The rise of online shopping and changing consumer habits are battering the big department stores known as anchors that once lured shoppers to malls—leaving landlords with empty space and forcing them to undertake expensive overhauls to stay relevant.”

• The Office Campus is Back and (Mostly) Doing Fine by Costar

Key excerpt:

“When we look at office construction, we’re seeing a clear sign that office campuses are back,” said Walter Page, CoStar director of U.S. office research, citing large build-to-suit corporate headquarters under construction such as tire and rubber company Bridgestone America’s 514,000-square-foot, $220 million tower and campus under construction in downtown Nashville; and Toyota Motor Corp.’s 2.1 million-square-foot, $350 million corporate campus headquarters on 100 acres in Plano near Dallas, expected for delivery in 2017.” 

• Morgan Stanley Says U.S. Commercial Real Estate Price Growth Will Be Flat by Bloomberg

Key excerpt:

“Morgan Stanley analysts last week predicted U.S. commercial real estate prices would grow by a big fat zero percent in 2016, replacing a previous forecast of 5 percent growth over the course of the year.”

• Warning Light Flashes for the Commercial Property Boom by WSJ

Key excerpt:

“The sharp move could make it harder for buyers to keep paying ever-higher prices in a market regulators already caution could be overheating. It is also causing a lot of head scratching on Wall Street. Real-estate prices are at or near record highs in many parts of the U.S., and loan delinquency rates are low.”

• MF, Mixed Use Dominate Crane Counts by GlobeSt

Key excerpt:

“Major projects across the US and Canada—from new starts to projects on the boards—indicate that construction activity is steady and shows no signs of slowing down in 2016.”

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