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.
• Healthcare Moves Out of Hospitals Into Communities, Say Industry Experts by Nellie Day of REBusinessOnline.com.
“‘Healthcare is the new retail,’ said Bryan Lewitt, senior vice president of CBRE in downtown Los Angeles. ‘Everyone is starting to chase healthcare tenants right now because they’re good for centers, they pay well and they’re well financed.’
Technology and healthcare reform were two of the main reasons listed for this new system of care.”
• Sector Focus: Industrial REITs Could Benefit from Increased Space Demands in 2015 by Sarah Borchersen-Keto of REIT.com.
“In a recent interview with REIT.com, Michael Landy, president and CEO of Monmouth Real Estate Investment Corp. (NYSE: MNR), said his company is currently enjoying rising occupancy rates and lease maturities. He also pointed out that industrial occupancy rates on the whole continue to rise.
Jason Lail, manager of real estate research at SNL Financial, said industrial REITs should continue to see high occupancy rates as a result of the growing demand for space. Industrial REIT occupancy at the end of 2014 stood at 94.3 percent, up from 93.7 percent in 2013 and 93.1 percent in 2012, Lail noted.”
• Starting Out? Why You Should Get a Coworking Space by Phil Domenico of Inc.
“Even during the most difficult of crunch times, a coffee break with a friendly face can release enough stress to get your focus back on track. Working in a shared office brings together a community of professionals all working towards similar goals.
Like any office setting, friendships and bonds can be formed in the right mix of personalities, and that powerful sense of community can make the good times better while getting you through the tough times. That simply doesn’t exist when working at home in isolation or among strangers at a coffee shop.”
• Massive Store Closings Will Reshape Retail Landscape As Online Newbies Take Over Some Locations by Barbara Thau of Forbes.
“Although the U.S. retail vacancy rate fell to 6.1 percent in the fourth quarter of 2014 from 6.6 percent in 2013, 2015 will be a whole other story, according to a research note from Dana Telsey, CEO of Telsey Advisory Group, a brokerage and retail consultancy, citing data from commercial real estate firm CoStar.
That’s because a large swath of retail space will open up as hundreds of stores go dark in the nation’s malls this year.”
• More Demand, Less Supply for Student Housing in 2015 by Bendix Anderson of National Real Estate Investor.
“Developers won’t finish as much student housing this year as they did in 2013 and 2014. Builders plan to finish properties with room for 48,000 new student housing beds this year, with nearly all of that housing opening over the summer, in time for new students to move in for the fall semester, according to Axiometrics. The new construction for 2015 is 23 percent less than the nearly 63,000 beds added to the student housing market for fall 2014 and the nearly 60,000 beds added for 2013.”