Data centers continue to post strong growth, with the development pipeline reaching 680.8 megawatts in the first half of 2021, up from 611.8 megawatts at the end of 2020, according to Jones Lang Lasalle. Data centers are increasingly finding themselves competing with industrial players for land but CEOs in this space still foresee ongoing growth. "Demand remains strong in both the United States and Europe, with some of our strongest markets being Northern Virginia, Phoenix, Texas, Frankfurt and London," says CyrusOne COO John Hatem.
Bluerock Residential Growth REIT has retained an adviser to help it explore its strategic alternatives, including a potential sale, according to sources.
Marcus & Millichap CEO Hessam Nadji says that the delay in returns to the office has blunted momentum in the short term but that the impact could be offset in the long run as conditions change and new businesses are formed. For commercial real estate as a whole, "the investment market is looking beyond this current cloud," Nadji says.
The number of visitors to an Empire State Building observatory in the second quarter was down 83% from the same period in 2019, illustrating the decline in tourism in general in New York City. The iconic tower, with its mix of small and large tenants, also serves as a gauge for the city's office occupancy. Many of these companies, when they do return to the office, plan to adopt a hybrid work model.
Large parts of Manhattan's retail community -- particularly stores in Midtown -- continue to feel the impact of the pandemic as office workers stay home due to the Delta variant. Some new leases are being signed by retailers eager to take advantage of low rents, and some businesses are concentrating their efforts on parts of the city with a high residential presence.
The Howard Hughes Corp. has sold three hotels in The Woodlands community in the Houston area for $252 million to a joint venture between Lowe and an institutional investor. "The sale of our hotel assets in The Woodlands further advances the disposition of non-core assets as outlined in our 2019 strategic initiative," said Howard Hughes CEO David O'Reilly.
Revenues from business travel will not return to pre-pandemic levels until 2024, according to a report by the American Hotel & Lodging Association and Kalibri Labs, which predicts that the hospitality industry will finish the year down more than $59 billion in business travel revenue from 2019. New York City, San Francisco and Washington, D.C., could face some of the longest recovery times.
California legislation permitting the construction of duplexes on most properties that have one home has been signed into law by Gov. Gavin Newsom. The law, which is expected to lead to more housing in the state, also includes measures designed to stop the displacement of renters.
US retail sales rose 0.7% in August, according to the Commerce Department, beating economists' forecasts of about a 0.8% decline, despite a rise in COVID-19 cases related to the Delta variant. Spending by back-to-school shoppers buoyed results, with general merchandise sales growing 3.5% and online and other non-store sales increasing 5.3%.
KKR and Cornerstone have formed a health care real estate joint venture that aims to accumulate assets worth more than $1 billion. The venture is seeded with 25 properties, including medical offices and ambulatory surgery centers, owned by Cornerstone.
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