Increased multifamily supply has resulted in more competitive leasing for high-end product, especially in urban locations. Markets are varying widely in performance, with annual rent growth ranging from a 7% increase in downtown Seattle to a 5% drop in downtown Houston.
REITs offer growth potential for investors, although opportunities in the market are more nuanced now, says Scott Crowe of CenterSquare Investment Management. Retail REITs have been oversold on fears about competition from e-commerce, while quality centers are near full occupancy now, says Alexander Goldfarb of Sandler O'Neill & Partners.
Dozens of condo properties in Chicago are converting into apartments as rental rates have increased by 24% over the last seven years. Deconversion is typically complicated, but local laws in Chicago make the process straightforward.
Lucknow, the India-based majority owner of New York City's Plaza Hotel, has tapped JLL to find a buyer for the sought-after property, a source said. The sale could be as much as $500 million, making it one of the most expensive hotel transactions.
CyrusOne's capacity has been sold out since the third quarter of last year, but this quarter it is bringing on new capacity, says Gary Wojtaszek, the corporation's president and CEO. "We have nine of the top 10 largest cloud companies in the world, and we are working hard to get the last one in our portfolio," he says.
The global prices for industrial metals are being driven sharply higher in the longest rally for base metals in three years. Market demand for nickel and copper remains strong, and buyers are paying more for zinc than at any time in almost a decade.
Highland Street Group purchased the former Indian Mall in Jonesboro, Ark., and plans to redevelop it with the help of Haag Brown Commercial. Preliminary drawings show 35,000 square feet of retail space connecting with a Kroger Marketplace.
Malls are adding unique tenants -- such as Madame Tussauds wax museum at Opry Mills in Nashville, Tenn., and an indoor rope course at Palisades Center in West Nyack, N.Y. -- and otherwise trying to emphasize experiences in order to keep the centers full and vibrant. In other cases, they are redeveloping into mixed-use complexes.
Hudson Yards in Manhattan introduces more luxury residential space into a market that is threatening to become oversaturated and more inequitable.
E-commerce hasn't killed physical retail, as many observers feared it might -- instead, technology is reshaping the physical shopping experience, writes entrepreneur Daniel Freedman. Amazon's acquisition of grocer Whole Foods and its planned integration into Amazon Fresh are examples of how e-commerce companies are emphasizing the best things about in-person experiences while minimizing the hassle factor.
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