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.
• Contrary to Belief, Millenials and Boomers Want Similar Workspaces by Michael Gerrity of World Property Journal.
“With millennials currently accounting for approximately 24 percent of the adult population in the U.S., and with a projected 75 percent of the workforce being millennials by 2025, much has been made about this new workforce generation, particularly when it comes to workplace strategy. While this is causing many companies today to debate how to balance the needs of millennials with those of a more tenured workforce, the CBRE study suggests that the generational divide is more perception than reality.”
• Competition for CRE Lending Creating a Dilemma for Banks by Mark Heschmeyer of CoStar.
“Dunson Cheng, chairman, president and CEO of Cathay General Bancorp, the holding company for California-based Cathay Bank, said as some of the CRE loans on its books are getting paid off by borrowers who have been refinanced by competing banks, it has been able to replenish its books with newer loans.
‘We are experiencing quite a bit of competition on the CRE loans. And in the third quarter we saw a higher pay-off on CRE loans as some of the existing loans are being let go because of pricing,’ Cheng said. ‘On the other hand we were still able to increase our CRE portfolio quite substantially.’”
• Buyer Beware: Due Diligence Do's and Don'ts by Peter V. Dessau and Eric C. McAllister for Multifamily Executive.
“Even reputable commercial inspection companies focus their due diligence investigations on interior systems, such as mechanical and plumbing systems, and generic sources of water intrusion common to all construction (roofs and windows). It’s doubtful, however, that these inspectors will discern hidden points of water intrusion such as handrails, deck edges, and stair stringers. Thus, it’s important the investigator be aware of not only how and where water penetrates, but how evidence of that water penetration—even when hidden behind finish materials like concrete and stucco—manifests itself on the finished surfaces of the building.”
• Breathing New Life Into Three Outdated Shopping Centers by Leslie Braunstein of Urban Land Magazine.
“‘Whether you’re doing lipstick, a facelift, an expansion, or a total transformation, you need to know expected costs and assess unanticipated costs,’ said moderator Ronald Altoon of Altoon Partners Architects. ‘Obsolete properties were built under old building codes; they can have toxic materials, they may require seismic upgrades, and they will most surely need accessibility improvements. You have to consider infrastructure capacity, and in many localities, sustainable design is mandated. You will want to make the skin weathertight to reduce maintenance costs and thus improve profitability.’”
• Commercial Real Estate Firms Get Techy by Lauren Elkies Schram of Commercial Observer.
“Prominent real estate companies like Time Equities, Cushman & Wakefield, Vornado Realty Trust and Sitt Asset Management are using Honest Buildings as a connection engine for real estate projects. Marty Burger and Tal Kerret, the chief executive officer and chief information officer of Silverstein Properties, Rockrose President Justin Elghanayan and James Ratner, the chairman and CEO of Forest City Commercial Group, have invested in Fundrise, a real estate crowdfunding site. Meanwhile, Stephen Siegel of CBRE and David Falk of Newmark Grubb Knight Frank are customers of real-time data provider View the Space.”