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.
• Head of the Class: 5 Key Student Housing Amenities by Kayla Devon of Multifamily Executive.
“A few years ago, players in the multifamily industry described student housing as an arms race where new developments continuously outdid one another. First, the focus was on in-unit amenities like granite countertops, spa-like bathrooms, and gourmet kitchen appliances. After a few years, high-end in-unit amenities became common place, and the tides turned toward robust communal areas for a generation that’s been accused of not being social outside of the digital world.”
• Real Estate Getting Own Financial Industry Classification from S&P by Michael Gerrity of World Property Journal.
“‘According to David Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, ‘Real estate is an important and growing part of major economies throughout the world. To reflect this and support good financial analysis, GICS is introducing an eleventh sector for Real Estate and redefining financials to exclude Real Estate. This is an example of our ongoing effort to ensure that GICS is reflective of today's markets.’”
• Seeing Similarities to 2007, CRE Industry Debates Whether We’re Early or Late in Current Upcycle by Mark Heschmeyer of CoStar.
“The year 2007 still casts a long shadow over today’s commercial real estate market. Nearly every discussion among commercial real estate pros involving cap rates, investment sales volume, price/square foot, loan underwriting, vacancy, etc., ties today’s values back to the previous market peak, just before it all collapsed after the bubble in housing values burst.”
• Quick Study: REIT Gains in October Continue Upward Historical Trend by Sarah Borchersen-Keto of REIT.com.
“Solid gains were seen across the market in October. Health care and self-storage REITs each posted gains of more than 12 percent in October, [Brad] Case noted, while the industrial sector gained close to 12 percent returns. Equity REITs were nearly 10 percent higher on average during October, and mortgage REIT returns increased by more than 5 percent, Case said.
The residential sector continued to make advances in October, with returns of greater than 9 percent. Case attributed the increase to low levels of new supply and rising demand from individuals who are finally beginning to look for rental housing.”
• Multifamily Construction Continues to Cast Shadow over Single-Family Homes by Nick St. Denis of The USGlass News Network.
“In fact, the 22 percent growth in 2014 in terms of multifamily housing starts was its lowest since 2009, and Dodge projects that number down to a 9 percent growth next year. ‘Market fundamentals such as occupancies and rent growth continue to be supportive,’ reads the Outlook, ‘although the rate of increase for construction is now decelerating as the multifamily market matures.’”