Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to four stories that caught our eyes in recent days.
• Among Commercial Sectors, Investors Still Favor Multifamily by Les Shaver of Multifamily Executive.
“‘As U.S. job growth has recovered slowly, the multifamily sector has benefited from new household formation—for example, young people moving out of parents’ homes and into rental apartments—as the economy has started to improve,’ KPMG said in the report. ‘Many household members fared badly during the recession and are unlikely to be homebuyers again anytime soon. They may also be deterred by today’s stricter mortgage guidelines or driven by the need for easy mobility to take advantage of career opportunities.’”
• U.S. Hotel Market Posts Positive Gains in Mid-September by World Property Channel.
“Of the Top 25 Markets, New Orleans, Louisiana, reported the largest occupancy growth, increasing 21.8 percent to 75.1 percent. Atlanta, Georgia, followed with a 16.0-percent increase to 74.9 percent. Philadelphia, Pennsylvania-New Jersey (-2.1 percent to 73.5 percent), and Minneapolis/St. Paul, Minnesota, Wisconsin (-1.4 percent to 79.9 percent), reported the only occupancy decreases for the week.”
• Revival of Long-Stalled Projects Helping Keep Architects Busy by Randyl Drummer of CoStar.
“One of the key triggers for accelerating growth at architecture firms is that long-stalled construction projects are starting to come back to life in many areas across the country, noted AIA Chief Economist Kermit Baker.
‘Long awaited access to credit from lending institutions and an increasing comfort level in the overall economy has helped revitalize the commercial real estate sector in recent months,’ Baker said. ‘Additionally, though, a crucial component to a broader industry-wide recovery is the emerging demand for new projects such as education facilities, government buildings and, in some cases, hospitals.’”
• Expansion at the U.S. Ports by Commercial Property Executive
“Sometime in 2016, one of the biggest public works projects of the age is expected to bear fruit when the newly expanded Panama Canal welcomes its first ships. Epic construction challenges, cost overruns and labor disputes have earned the $5.3 billion project considerable notoriety over the past decade. Beyond its more sensational aspects, however, industrial real estate stakeholders are weighing a complex issue: How will this watershed project affect the real estate strategies of end users nationwide?”