Why Foreign Investors Love U.S. Commercial Real Estate, and Why More Will Follow…AND MORE

Why Foreign Investors Love U.S. Commercial Real Estate, And Why More Will Follow, by Evan Gentry, Forbes

“Despite fears of trade wars and increased protectionism, foreign investment in the United States remains robust. In fact, the U.S. continues to be the single largest recipient of foreign direct investment (FDI) in the world: more than $450 billion was pumped into the U.S. economy from other countries in 2016, according to the Bureau of Economic Analysis at the Department of Commerce. A significant amount of this capital is flowing to commercial real estate (CRE), which continues to be the sector of choice for many foreign investors. International investors have purchased more than $365 billion in U.S. CRE since 2010, with the majority of capital flowing to the largest metropolitan regions. Manhattan alone represented nearly a fifth of all foreign investment in U.S. CRE in 2017, greater than the next three markets combined. These inflows to the sector may only be the beginning. A growing U.S. economy should continue to drive more demand for commercial property.”

 

Another Decade Of Positive Rental Growth Could Be On The Horizon For Multifamily, by Travis Gonzalez, Bisnow

“The past 10 years have been good to multifamily developers and owners. Fueled by housing shortages and a rush of young professionals into urban cores, rents are expected to increase on average by 3.8% this year. In the post-recession market, shrinking unemployment and rising income have put further pressure on supply in major metro areas. A preference for renting over homeownership remains among millennials and baby boomers. Yardi Matrix predicts continued moderate multifamily growth this year, which includes an anticipated delivery of 360,000 units in 2018. But concerns about overbuilding in the luxury market, insufficient affordable development and changing demographics remain on the horizon.”

 

Food Trucks, Food Halls And Pop-Ups Are Reducing Risks For Restaurateurs, by Matthew Rothstein, Bisnow

“As food trucks, pop-ups and food halls gain increasing acceptance in real estate, a defined pipeline is emerging as chefs and restaurateurs opt for these lower-cost solutions to launch or expand their brands. With more temporary and mobile solutions, these operators can test out locations, recipes and branding with less capital and fewer risks before deciding to open a full-time restaurant. ‘Food trucks have gone from a fad to a necessary platform,’ National Food Truck Association CEO Matt Geller told Utah Business. A contributing factor to the proliferation of food trucks is the widespread adoption of food trucks by landlords as an amenity to lend suburban office parks an urban feel, or to boost foot traffic on blocks that have new mixed-use developments. Both situations funnel customers to food trucks right outside the door of their office or home, allowing operators to build an audience that could follow them to their future or current brick-and-mortar locations.”

 

Real estate Property Manager and Developer JLL Launches a $100 Million Tech Investment Fund, by Jonathan Shieber, Tech Crunch

“The multi-billion-dollar real estate developer and property manager JLL is getting into the tech investment game with the launch of a new $100 million fund run by corporate subsidiary JLL Spark. Initially envisioned as a technology-focused business unit of the multinational real estate company, the firm eventually turned to the more traditional venture capital investment model as a way to get more exposure to all of the new technologies that are coming to market, according to JLL Spark’s co-chief executive, Mihir Shah. For Shah and his co-founder Yishai Lerner, running the real estate company’s investment firm is the first foray by either executive into the world of real estate or property technology. But both men have been working in the startup world of the Bay Area for more than a decade.”

 

Top 6 Commercial Real Estate Trends, by Natalie Dolce, GlobeSt.com

“Amid widespread optimism about the strength of US commercial real estate, a recent Akerman report identified top trends among executives, and said that taxes and technology are major elements that will define the CRE trajectory for the next three years. GlobeSt.com got an exclusive look at the commercial real estate data and trends set to define dealmaking and investments for the rest of the year by law firm Akerman LLP. The ninth annual Akerman US Real Estate Sector Report, which has been tracking executive sentiment in CRE for nearly a decade, identified six top trends among leading real estate executives…”

 

HelloFresh is Latest Meal Kit to Head to the Grocery Store, by Lauren Hirsch, CNBC

“HelloFresh will soon sell its meal kits in Ahold Delhaize’s Giant Food and Stop & Shop, the latest meal kit company to offer such a service. HelloFresh joins Plated — which last year sold to Albertsons and Blue Apron, which itself just began selling in Costco Wholesale — in seeking a retail partner. Amid a struggle with user retention, meal kit services have been seeking out brick and mortar partners, where shoppers can use their products without subscribing. HelloFresh is starting the service in 581 stores, largely concentrated in the Northeast. It is looking for further retail partners as well, said Tobias Hartmann, the company’s president of U.S. business. To support the move into retail, HelloFresh built out its network from five to 11 facilities, and plans more expansion in the future.”

By |2018-06-06T20:52:23+00:00June 6th, 2018|