October 29, 2014

Wednesday Wrap: Oct. 29, 2014

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.

Shaping the Future through the Built Environment by Patrick J. Kiger of Urban Land Magazine.

Key excerpt:

“Panelists at the opening session of the 2014 ULI Fall Meeting in New York City predicted that society, the economy, and cities are on the cusp of a dramatic, fundamental shift—one with even more game-changing potential than the tumultuous, often painful reordering that has been seen over the past couple of decades. But the new wave of change—which urban built space could play a major role in facilitating—has the potential to reverse troubling current trends, from climate change and economic inequality to the personal isolation caused by overuse of electronic gadgetry.”


As Good As It Gets? Office Market Moving Into Sweet Spot In Recovery by Randyl Drummer of CoStar Group.

Key excerpt:

“About 57 million square feet of net office space was absorbed from the beginning of the year through the third quarter, a full one-third increase from 43 million square feet of office space absorption a year ago, said [Walter] Page, who noted that the country is on target for a very strong 74 million – 80 million square feet of net absorption for 2014 as both CBD and suburban office markets are experiencing strong leasing activity.”


Cap Rates Hit Record Lows in 3Q by Les Shaver of Multifamily Executive.

Key excerpt:

“‘The spreads between rates and treasuries are still pretty wide and the outlook for NOI is pretty good right now,’ says Ben Thypin, director of market analysis at RCA. ‘I think the market would prefer that base rates increase sooner rather than later so we can absorb it over time instead of in a few years from now when pricing is higher and the outlook for NOI growth is less certain.’”


PwC Forecasts Higher Interest Rates, Strong Industrial Market in 2015 by Peter Grant of the Wall Street Journal.

Key excerpt:

“Industrial property is hot thanks to such things as the changing retailing business model and stronger homebuilding. ‘The opportunity has not gone unnoticed by capital providers,’ the report says.

Investors should avoid properties in areas associated with suburban sprawl. ‘If a property is dependent upon an inflated parking ratio, take a pass,’ the report states. “If a property is operationally tied to demand that presumes the growth of tract housing at the perimeter of a metro area, run the other way.’”


Retail Landlords Embrace CSR Reporting by Shopping Centers Today.

Key excerpt:

“A study by the New York City–based Governance and Accountability (G&A) Institute released in June found that 72 percent of the S&P 500 Index companies published CSR/Sustainability reports in 2013, up sharply from 53 percent in 2012 and 20 percent in 2011.

About 95 percent of the largest 250 companies in the world now produce a CSR or sustainability report, according to data from the Center for Corporate Citizenship. Among the offshoots of such practices, it said, are improved financial performance, better innovation and operating efficiency and increased employee retention and consumer trust.”


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