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:
Economy Watch: Single-Tenant Retail Accounts for Most Growth in the Sector, by Dees Stribling, Multi-Housing News
Key Excerpt:
“Moreover, there’s an increasing amount of demand among investors for single-tenant retail properties. Some of that demand is being fueled by a generations of owner trading out of other assets via 1031 exchanges. Property owners nearing retirement are often electing to divest themselves of more management-intensive property types, especially apartment buildings (which are popular themselves among other investors for other reasons).”
Overbuilding Likely as Demand for Seniors Housing Stalls, by Robert Carr, NREIOnline
Key Excerpt:
“A significant amount of new supply will likely come on-line by the end of 2016, a fact now causing some concern in the industry, says Zach Bowyer, managing director at CBRE’s seniors housing and care division. Though there are some restraints enacted by lenders asking for loan-to-value (LTV) ratios as low as 50 percent, as well as higher development costs, a flood of new capital is coming from investors trying to enter a prime sector of commercial real estate.”
Can This Real Estate Gimmick Save the World?, by Patrick Clark, Bloomberg
Key Excerpt:
“In the meanwhile, a Boston Consulting Group study commissioned by Crystal Lagoons shows demand for 14,000 artificial lakes around the world.”
Luxury Condo Boom Is Ending in Manhattan, by Eliot Brown and Josh Barbanel, WSJ
Key Excerpt:
“Demand in Manhattan’s super-high-end condo market has dried up amid global economic jitters, just as the market has been flooded with unprecedented supply. It is a potent recipe for a bear market in a sector that has reshaped the peaks of the Manhattan skyline in recent years.”
Retail as Multifamily Development Opportunity, by Jerry Hoffman and Jeff Green, Multifamily Executive
Key Excerpt:
“From a retail industry perspective, having a strong on-site demand component is an attractive proposition. Retailers are increasingly recognizing just how valuable it can be to have a built-in consumer base. On the residential side of the equation, the growing popularity of quality mixed-use with a strong multifamily residential component is being driven by important demographic trends. This includes the simple desire of families and individuals to live near places where they can eat, shop, go to the movies or an evening concert, and generally enjoy a wide range of convenient amenities in a comfortable residential setting.”