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:
Industrial Flexes Muscles Amid Rapid Change, By Paul Rosta, Commercial Property Executive
Key Excerpt:
“As of the first quarter this year, spec projects under construction totaled nearly 110 million square feet, equivalent to about 62.5 percent of the total under construction, according to Cushman & Wakefield research.”
Will Office Investment Market Pivot from Lease-Up Opportunities to Asset Preservation Mode?, By Randyl Drummer, CoStar
Key Excerpt:
“Despite muted levels of construction, continuing rent growth and vacancies still drifting downward and a pick-up in overall economic activity, investor sentiment indicates a widening belief that the office market may have reached its peak, or is expected to continue slow but steady improvement and not a spike in leasing activity as previously hoped.”
Experts Question Investor Appetite for Secondary Office Markets, By Robert Carr, NREIOnline.com
Key Excerpt:
“There’s been no blip in demand so far—rather, it’s getting harder to find great deals in top markets. Investment in office properties in primary markets took a dip in the first quarter, as investors got spooked by watching yields shrink in high demand areas.”
Starwood Said to Offer $1.2 Billion of U.S. Malls for Sale, By Ed Hammond and Jack Sidders, Bloomberg
Key Excerpt:
“Bleak earnings forecasts from department stores, Internet shopping and bankruptcy filings by firms including Sports Authority Inc. and teen-clothing chain Aeropostale Inc. have damped demand for malls among investors.”
Interest Rates, REITs, and Brexit, By Susan Persin, Urban Land Institute
Key Excerpt:
“The longer-term impact of the Brexit on U.S. real estate markets would be determined by what happens in the broader economy. A loss of U.S. jobs or a drop in consumer spending would slow the economy and could cause real estate market fundamentals to weaken.”