Retailers are scrambling to revamp stores with new experiences that bring shoppers back, said Jeremy Bergstein, president of retail tech vendor The Science Project. Boot retailer The Frye Co. implemented interactive mirrors at its store in San Francisco that lets customers browse through product options by holding a leather swatch up to the screen.
Money managers are increasingly aligning their interests with activist investors in order to push for change at companies in which they invest. One example is Neuberger Berman, which teamed up with hedge fund Jana Partners to agitate for change at Whole Foods.
Some malls are repurposing their vacant space into call centers, which in some cases are used by retailers. Other malls are being evaluated as a site for e-commerce delivery and fulfillment operations.
Terreno Realty has acquired a 23-acre industrial property in the Lynwood submarket of Los Angeles. It paid $31.4 million to the seller, aviation supplier Desser Tire & Rubber.
REITs need to closely monitor the impact that a comprehensive federal tax overhaul may have on state taxes and plan accordingly, says Scott Smith, national practice team leader for state and local tax at BDO. Another state issue to watch is how states react to changing procedures for how the IRS conducts partnership audits.
A report from CBRE Group Inc. has found that the typical warehouse height in the US increased to 33 feet in 2016 and that of the 13.7 billion cubic feet of space built between 2010 and 2016, there would be only 422.5 million square feet in measured ground-floor area. Here, David Egan of CBRE discusses how building taller will continue in the industrial sector.
The grade A office vacancy rate in Beijing climbed to 6.1% in March, and supply will rise throughout the year, which is expected to lead to a drop in rent by as much as 15% by the end of 2021. Leasable high-end office space in the area has increased to 108.5 million square feet.
Eighty percent of Costco members cite groceries and food as the main reason for shopping there, giving the warehouse retailer an advantage when it comes to fending off Amazon and other online competition, according to Barclays. The category accounts for 57% of the retailer's total sales.
FelCor Lodging Trust is merging with RLJ Lodging Trust to become a wholly owned subsidiary of its fellow lodging REIT in an all-stock transaction valued at $1.2 billion. The deal will create a $7 billion company, which the two companies say will be the largest pure-play public REIT "dedicated to owning focused-service and compact full-service hotels."
The effect that rising interest rates will have on REITs and real estate investments will vary depending on the asset class, with hotel and apartment REITs least likely to experience an impact from rising rates, writes Rebecca Lake. Apartment REITs may experience moderating growth, but it won't be due to rate increases, Lake writes.
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