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.
- REITs Find It Easy to Raise Money by Corrie Driebusch of the Wall Street Journal.
“In 2014, a record $12.4 billion flowed into U.S. real-estate mutual funds and exchange-traded funds, according to Morningstar. For the first two months of 2015, REIT funds took in $1.8 billion more.
‘Flows have been quite positive, so investors have been happy to participate in these capital raises,’ said Brian Jones, portfolio manager for the Neuberger Berman Real Estate Fund. He said his fund has participated in a handful of recent REIT offerings.”
- Flurry of Freight Spurs New Commercial Building Construction in Georgia by Keith Schneider of the New York Times.
“Demand for new warehouse and distribution space is intensifying, said John F. Petrino, director of business development for the Georgia Ports Authority. Vacancy rates, which were as high as 18.6 percent in 2009, dropped to 5.4 percent last year, according to the port. That occurred even as 11 new or expanded distribution centers, enclosing more than three million square feet, opened last year in or near Garden City, the Ports Authority said, accounting for 1,950 new jobs.”
- Going green now easier mountain to climb by Joshua Richards for Real Estate Weekly.
“Sustainability, like all real estate investments, requires the right context and frame of mind. For instance, a shift in focus from short-term to long-term return on investment can make all the difference — with generally short payback periods and a slew of ancillary benefits, the lifetime advantages of green building solutions can vastly outweigh upfront costs.”
- E-Commerce’s Impact on Retail, Industrial by Carrie Rossenfeld of Globe St.
“Chris Hite, president of Coreland Cos., said the double whammy of the recession and e-commerce helped full a number of categories that revitalized the retail sector, including fitness and other service businesses. ‘Smart retailers are embracing e-commerce. Soon, we won’t make the distinction between Internet and brick-and-mortar purchases.’”
- Foreign Capital Flows Into U.S. CRE by Obie Walli of National Real Estate Investor.
“It’s no secret that the panache and stature associated with being the owner of a property in the United States carries its own weight to these investors. What’s also interesting to note is that they are not necessarily concerned about some of the other factors that keep the typical U.S.-based commercial real estate investor up at night, such as cap rates. Foreign investors’ main concern is simply the yield their investments will produce.”