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.
• Is Real Estate Crowdfunding Right for Me? by NASDAQ.
“Traditionally, purchasing a real estate property for investment often requires a great deal of money upfront. For example, an investor purchasing a $200,000 investment property is likely required to put at least 20 percent down or $40,000 to close on the property. Factor in closing costs, the amount of money to close jumps to at least $45,000 for a single property. With real estate crowdfunding, however, you might be able to spread out your $45,000 over four or five different properties in different markets across the country.”
• Report Explores Global Energy Impact on Real Estate by Nancy Sarnoff of the Houston Chronicle.
“An explosion in unconventional oil and gas development is having a dramatic impact on commercial real estate activity in Houston and other markets with a heavy focus on oil and gas operations, according to a new report from CBRE Group, a commercial real estate firm.
‘The energy industry is global by nature, yet can have significant impacts on local economies and commercial real estate markets where there is a concentration of industry activity,’ said a statement announcing the new report, ‘Energy Revolution Impact on Americas Commercial Real Estate.’”
• Raising the (Phone Coverage) Bars in Commercial Buildings by Jeffrey Spivak of Urban Land Magazine.
“Telecom equipment called a distributed antenna system—known as DAS—is being mounted at stadiums, airports, universities, hospitals, convention centers, high-rise towers, and other large-scale properties where thousands of people gather daily or occasionally. Meanwhile, smaller-scale products called femtocells, picocells, and metrocells—collectively known as “small cells”—are gaining favor in office buildings, hotels, industrial warehouses, shopping centers, and other facilities where better phone service is not just a desire, but a demand in today’s smartphone culture.”
• Cross-Border Money Flowing Freely Into Leading U.S. Real Estate Markets by Randyl Drummer of CoStar.
“With concerns over rising interest rates subsiding, a stronger influx of foreign and alternative capital has continued to stream into domestic property in search of higher yields, according to analysts and executives for U.S. REITs, CRE services firms and fund managers.
Property services giants like JLL, CBRE and HFF are benefitting from a projected 15 percent bump in property sales activity worldwide, fueled to a large degree by rising foreign capital, according to Mitch Germain, an analyst with JMP Securities. Combined with an uptick in fundraising by alternative investors in the market, commingled capital volume has risen 16 percent over prior-year levels.”
• Adopting New Real Estate Technologies by Melissa White for Multi-Housing News.
“In the realm of real estate, technology is completely changing the apartment leasing experience, and Millennial renters, who are accustomed to data at their fingertips, are at the forefront of this revolution.
But what does this mean for today’s property management professionals? For one, technology gives them the power of time, allowing them to more effectively manage day-to-day sales operations and focus on what matters most—getting the word out about available properties.”