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.
- High-End Malls Get Boost From High-Tech Stores by Robbie Whelan of the Wall Street Journal.
“No one tracks sales per square foot across all retail stores. But landlords say a big driver of malls’ recent resurgence has been a new generation of technology-focused tenants, such as Tesla, Apple Inc. and Microsoft Inc., that are ringing up strong sales and supplanting ‘anchor’ department stores that malls used to rely on to bring in customers. Tesla and Apple declined to disclose figures for their stores. Microsoft couldn’t be reached for comment.”
- The Rise of the 18-Hour City by Susan Piperato of National Real Estate Investor.
“When we drill down, we find that surprisingly, it’s not just millennials. When people think of urban, everybody thinks millennials want to live in cities—they think ’young‘; they think ’live, play, work‘. But the fact of the matter is, baby boomers and millennials alike are finding 18-hour cities—non-gateway, so-called second-tier cities—attractive. These cities offer two things: a lower cost of living and a lower cost of doing business when compared to the gateway cities.”
- Changing Tenant Space Needs Shaping Office Development by Michele Lerner of REIT.com.
“Technology has changed the way everyone works; employees can do business in multiple spaces inside and outside their office buildings. Individual offices are often shrinking. Companies no longer need libraries, file rooms and copy rooms. Workers can benefit from more spacious and attractive break rooms. There are casual workspaces in the lobby or on the roof.”
- What Could Derail the Housing Market in 2015 by Diana Olick of CNBC.
“First and foremost is credit. While some claim credit is loosening, it is still far tougher to get a loan today than it was even before the heady days of the housing boom. Borrowers need higher credit scores, less overall debt, and full documentation of finances; the last one isn't quite as simple as it sounds.”
- With Tax Law Changes, Foreign Investment Could Take Off by Les Shaver of Multifamily Executive.
“The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), which imposes income tax on foreign persons disposing of United States real estate, basically penalizes foreign investors for spending money in the United States.
If there is a change in that law, David Schwartz, CEO of Waterton Associates, thinks international capital flows could dramatically increase.”