Regional mall REIT shares have been under pressure as stores such as Sears, J.C. Penney and Macy's have announced closures while e-commerce companies such as Amazon continue to do well. The stock of three major retail REITs that focus on regional malls have dropped more than 20% this year.
There is $435 billion in new capital available for global real estate investment this year, according to Cushman & Wakefield China -- the second-highest level since 2009.
About $173 billion is targeting properties in the Americas, and $130 billion is slated for Europe, the Middle East, Africa and Asia.
REITs that hold mortgage-backed securities, or mortgage REITs, have been returning dividend yields averaging nearly 10%, according to NAREIT -- more than triple what a 10-year Treasury bond returns. With interest rates rising, there is debate over how they will continue to perform, but NAREIT economist Brad Case maintains that mortgage REITs' yield premium over Treasury and corporate bonds has been an effective technical indicator of solid future performance.
Suburban offices are gaining currency as owners use creative tech and other strategies to reposition these properties to be more attractive to millennial workers accustomed to urban amenities. Another factor is that Millennials are moving to the suburbs themselves as they start families.
Soaring online sales boosted industrial real estate stock performance last year: industrial REITs produced a 30.7% return. Green Street Advisors estimates that e-commerce increased demand for industrial real estate space by 30% to 40% last year -- a trend that is expected to continue.
ESH Hospitality, the REIT subsidiary of Extended Stay America, has a five-year plan to expand its market share by concentrating on individual assets and markets instead of the portfolio plays it focused on in its last five-year plan, according to ESH CEO Gerry Lopez. The plan also includes shedding non-core assets; over the last 14 months, the REIT has sold or placed under contract 57 hotels.
US cities are increasingly becoming populated by home renters rather than homeowners -- US Census Bureau data compiled by Redfin shows that 52 of the 100 largest metro areas reached that status in 2015. Twenty-one of those cities have moved to majority-renter status since 2009, including such cities as Denver and San Diego, where the single-family housing market is hot.
Cypress Equities has appointed Stirling Properties to take over management of Pinnacle Nord du Lac, a 327,000-square-foot shopping center on 150 acres in Covington, La. The 97% leased center has 162,000 square feet of expansion planned.
Entertainment firm KidZania is set to open its first US property in 2018 in Frisco, Texas, where it also plans to set up its corporate headquarters. The 80,000-square-foot facility will be built outside the Stonebriar Centre mall and will feature a miniature city with real-life activities that children can perform.
Tangerine Plaza, a shopping center in St. Petersburg, Fla., was sold at auction, and the city may take ownership of the struggling property. The city invested $2 million to open the center in 2005.
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