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.
• Baby
Boomer Boom: Senior Housing Need to Rise In Near Future by
Lindsay Machak of Multifamily Executive.
Key excerpt:
“While
much of the talk about demographic demand-drivers centers on Gen Y, there's
another population poised to reshape the multifamily landscape.The
U.S. Administration on Aging estimates there will be more than 75 million
people over the age of 60 living in America by 2020. This is up from more than
45 million people in 2000.Rick
Graf, for one, believes seniors in America are the biggest opportunity in the
multifamily industry. Graf, president of Seattle-based Pinnacle, is in tune
with the changing demographic trends nationally and has no doubt that seniors
will provide a boost in the coming years.”
• Protecting
Landlord Rights by Thomas Onder for Shopping Center
Business.
Key excerpt:
“The
economy is gaining ground, consumer confidence is up and market rents are
increasing. Now is an opportunity for landlords to market and obtain new
tenants at higher rents for more profitable centers. Some landlords may be
hindered by tenant lease option(s), which may contain much lower market rents,
lucrative expansion space, purchase rights and other criteria from negotiations
at the inception of the lease that occurred during the Great Recession.”
• Linneman:
Deferred Renovation Projects Drive Growth Across All Sectors by
REBusinessOnline.
Key excerpt:
“The renovation of
existing properties across all commercial real estate sectors rather than new
construction is driving growth and has helped balance supply and demand,
according to Peter Linneman, chief economist with NAI Global.‘As the U.S. economy
continues to improve, we are seeing a return to stability, especially with core
properties with investors looking for high-quality assets,’ said Jay Olshonsky,
president of NAI Global, during a recent webcast focusing on the economic
outlook.”
• As
CRE Turns Corner, Banks Face Decision On How Hard to Compete for Loans by Mark
Heschmeyer of CoStar.
Key excerpt:
“But as it seems with
every aspect of this recovery, it’s an uneven mix, largely reflecting what
stage of recovery the individual bank's loan portfolio is in. Some have just
cleared up the messes in their portfolios from the Great Recession of 2007;
others have already started growing that business – and pretty aggressively
too; yet another batch is already starting to pull back as competition for
deals has driven down yields and loosened credit standards beyond their comfort
zones.According to bankers,
demand for commercial real estate loans is increasing not just for refinancings
but also for purchases and development. At the same time, borrowers’ credit
quality continued to improve in the third quarter that just ended.”
• Hotels
As Social Hubs, Economic Engines by Robert Habeeb for GlobeSt.com.
Key excerpt:
“Today’s hoteliers need to recognize the
economic power that hotels still hold within communities, and they should be
looking for opportunities to enhance their visibility and capitalize on the
critical role that they play as social and economic drivers. While social and
economic realities have changed a great deal over the years, there are still a
number of valuable opportunities for hoteliers to capture (or recapture) that
social magic and increase their bottom line.”