June 21, 2017

How Will the Amazon-Whole Foods Deal Affect Retail Real Estate…AND MORE

How will the Amazon-Whole Foods deal affect retail real estate? By John Egan, NREIOnline.com

“Amazon’s purchase of Whole Foods should instill confidence in retail real estate investors, especially those whose portfolios include grocery-anchored properties, Harding notes. ‘Grocery-anchored shopping centers have always been one of the more stable property types within retail,’ he says.”


Economy watch: Fed sure of economy, raises rates, promises asset sell-off, By Dees Stribling, Multi-Housing News

“The Federal Reserve, for its part, seems to believe that the economy is strong enough for money to be more expensive, including real estate financing. Thus the central bank raised the Fed Funds rate on Wednesday by 25 basis points, to the range of 1 percent to 1.25 percent. Investors were not surprised, and pretty much any serious commercial real estate deal had the likelihood of higher rates accounted for, if funding hasn’t been obtained already.


More developers are targeting aggressive sustainability goals, By Julie Littman, Bisnow

“‘Market pressures and market demands are really driving sustainability,’ Murtagh said. ‘Gen Xers and millennials are insisting that businesses behave in a more sustainable fashion.’ These two generations make up the bulk of the workforce, so landlords are becoming more adept in meeting these demands. Developers are also making sustainability a part of their overall business practices and have made significant strides toward reaching their goals.”


Creative solutions through landscape architecture, Multifamily Executive

“‘More than ever, developers are appreciating the value of landscape amenities,’ says Pressman, who also notes that such elements are the first to get cut when budgets are tightened. However, as densities continue to rise, multifamily developers are finding that consumers are increasingly demanding generous site amenities. ‘With higher densities and smaller units, there’s more incentive for residents to look for outdoor areas where they can socialize,’ says Pressman.”


Commercial, multifamily mortgage debt in U.S. tops $3 trillion, By Michael Gerrity, World Property Journal

“According to the Mortgage Bankers Association, the total commercial/multifamily debt outstanding in the U.S. rose to $3.01 trillion at the end of the first quarter of 2017, the first time it has broken the $3 trillion mark.  Multifamily mortgage debt outstanding rose to $1.17 trillion, an increase of $23.4 billion, or 2.0 percent, from the fourth of quarter of 2016.”

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