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.
• Office REITs in U.S. Plan the Most Construction in Decade by Brian Louis of Bloomberg.
“Prices for office buildings in major markets have surged past peak levels, lifted in part by sovereign-wealth funds and pensions willing to accept lower yields than other investors because they are seeking safe investments. For REITs, which have to answer to shareholders seeking higher returns, building is often a better option than competing with institutional buyers.”
• U.S. Commercial Real Estate Enjoys Strong Rebound in Q2 by World Property Channel.
“‘Commercial real estate leasing activity in Q2 2014 picked up from the weather-affected levels of the prior quarter,’ said Jon Southard, Managing Director of CBRE's Econometric Advisors group. ‘The pace of demand can finally be described as good — without the caveat of ‘for this recovery.’”
• FAA Says Real Estate Agents' Drone Use Illegal by Joel Aschbrenner of USA Today.
“Real estate joins agriculture, filmmaking and journalism as one of the industries finding new ways to use the small unmanned aircraft and pushing the legal limits of their use.
Realtors have always looked for new tools to advertise properties. Online listings have included photo galleries, then satellite images and eventually Google Street View. Drone photography is the logical next step, real estate agents say.”
• Loose Lending Sparks Fear of Cash Crash by Konrad Putzier of Real Estate Weekly.
“Brokers and economists warn that lending is growing at a faster pace than market fundamentals in many parts of the U.S., spurred by laxer underwriting standards. The most visible symptoms include rising loan-to-value ratios, shrinking interest rate spreads, a growing appetite from lenders for riskier markets, and the return of interest-only loans.”
• Developers Find Great Returns by Following the Energy Sector by Linsey Isaacs of Multifamily Executive.
“The birth of boomtowns also offers developers like GMH a chance to expand their geographic footprint. But the phenomenon isn’t confined to Pennsylvania: The energy gold rush under way along the Bakken Shale in North Dakota and the Eagle Ford Formation in Texas also provides tantalizing opportunities for apartment developers. But succeeding in these markets isn’t a one-size-fits-all proposition.”