Learn about how hotels are adapting to rapidly changing technologies, find out why we're in the "golden age of industrial real estate," and review recent research suggesting pension funds are leaving returns on the table in the March/April issue of REIT magazine.
Sources say Brookfield Property Partners has made a new bid for GGP, which rejected a $14.8 billion cash-and-stock offer late last year, Reuters reports. The sources say the cash component in the new offer is slightly higher, and the proposed deal would create a new security that would trade as a REIT.
The FOMC is widely expected to raise its target for short-term interest rates at its policy meeting March 20-21. Nareit economist Calvin Schnure discusses the relationship between interest rates and REITs, and notes that the industry is well-prepared for the interest rate environment ahead.
Despite a robust economy, home construction per household is close to its lowest level in 60 years, according to the Federal Reserve. The reason is rising costs of construction and labor, which has made the development of starter homes in desirable areas unprofitable for developers.
Medical office buildings are shedding their alternative asset status as institutional investors, including REITs, and start to treat these properties and portfolios as a mainstream holding. "The primary driver toward this asset class is the perception of insulation against broader market conditions," says Marina Hammersmith, a healthcare brokerage services executive at Ensemble Real Estate Solutions.
As commercial real estate prices in Manhattan's retail market fall, small businesses are investing in these assets as owner-occupiers. These buyers still represent a small portion of overall sales, but Real Capital Analytics notes that 8% of retail condo sales dollars last year were attributed to such buyers, up from about 3% the year before.
Various statistics show that co-working is becoming a significant trend within commercial real estate, with JLL predicting that by 2030 it will account for 30% of office space. Co-working's emergence is forcing developers and property owners to strategize on how they can offer the most efficient floor plans to such tenants.
Supply and demand in the multifamily space remain largely balanced even as the total number of occupied units showed that demand grew 40% in 2017 compared with the previous year, according to CoStar data. Rent growth has slowed, though, as new supply has entered the market.
NAREIT speaks with KPMG Chief Economist Constance Hunter on the current and future real estate market, interest rates and the supply/demand imbalances pending in the market. "The real estate market looks healthy, but that does not mean it will not be impacted by the overall economic environment," she says.
As part of the measure to roll back some of the rules in the Dodd-Frank Act, the Senate included a provision that would ease the requirements of the High Volatility Commercial Real Estate Loans (HVCRE) rule. It is unclear whether the House of Representatives will pass the bill without adding several of its own measures.
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