The National Association of Realtors' chief economist, Lawrence Yun, said he expects commercial real estate prices to rise for the next year, then even out in 2020. The multifamily and industrial asset classes are the best-performing, with cap rates trending at 5% to 6%, he says.
Mack-Cali Realty Corp. has terminated settlement discussions with dissident shareholder group Bow Street LLC. Bow Street recently launched a proxy fight after its proposal to financially restructure and sell the REIT was rejected.
Weyerhaeuser Co. is among the largest US REITs, with a market cap of about $20 billon. Despite its size, President and CEO Devin Stockfish spends time engaging with the company's employees, including its foresters, log truck drivers and the people who work at the mills.
Host Hotels & Resorts has put two Marriott Suites properties in Chicago's suburbs up for sale, as the REIT apparently looks to exit the market. The hotels are part of a six-asset portfolio with an estimated value of $325 million that Host Hotels wants to sell.
Entities like social-purpose REIT Housing Partnership Equity Trust are among the leaders tackling the affordable housing crisis with partners such as Eden Housing, a nonprofit. Affordable housing has become a national concern, says John Pawlowski, a senior analyst at Green Street Advisors, who adds, "The political pressure will build until the cycle breaks and rents go down."
Fashion retailer H&M has debuted a new, two-tier loyalty program with expanded rewards for its biggest-spending customers. Perks will include discounted blowouts at Drybar, invitation-only events and free-shipping offers.
Discount retailer Fred's will shutter 104 stores by the end of next month, in addition to the 159 closures announced last month. The closures, part of an ongoing restructuring, will leave the retailer with about 300 locations.
JBG SMITH has raised a committed $78 million for its social impact fund from 11 investors, including developers and leading financial institutions. The fund's purpose is to develop and preserve affordable workforce housing across the Washington, D.C., area, and the fundraising goal is $150 million.
Expanding e-commerce and the growing volume of data traffic are fueling the growth of the cell tower, data center and industrial REIT sectors. In a Bloomberg Intelligence webinar, Invesco's Paul Curbo and Cohen & Steers' Evan Serton say new technologies and users will continue to support these sectors.
Rising interest rates can create headwinds in REIT capital markets and may be a factor behind slow REIT activity in initial public offerings, said Daniel LeBey, a partner at Vinson & Elkins. If the REIT IPO market remains soft, LeBey expects strong M&A activity for 2019.
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