Commercial real estate fundamentals remain healthy, according to a majority of investors questioned for the Marcus & Millichap/NREI Investor Sentiment Survey for the third quarter. While sentiment is still positive, there is "emerging investor caution because they are not sure what will happen with the range of policies on the table," said John Chang, a research vice president at Marcus & Millichap.
Suburban office markets that also have a vibrant live-work environment and access to transportation offer higher growth potential to investors and are better positioned to perform over the long term due to strong demand and demographics, according to a CBRE survey of the 25 largest suburban markets. "These submarkets contain institutional-quality product but have yet to record the same level of rent growth, and subsequently, the pricing levels seen in CBDs and secondary business districts," wrote CoStar Portfolio Strategy analysts Paul Leonard and Marcos Pareto in a white paper.
Stakeholders in REITs' sustainability projects agree that forward-looking investments are worthwhile even though returns are still being quantified. REITs are focusing their efforts on four areas as they take their green investments beyond the established methodologies: green leases, solar power, fuel cell savings and smaller footprint projects.
China has formalized rules on overseas investments, restricting activity in property, hotel, film, entertainment and sports categories. Instead it is encouraging companies to invest in the country's "Belt and Road" infrastructure initiative project.
Commercial real estate technology is moving away from its nascent stage and into a more mature phase. Areas where this article predicts future developments will occur include industry standard point solutions, leasing data services, communication and reporting platforms, auctions and crowdfunding and robo-advisors.
The White House has decided not to move forward with a planning council to advise on infrastructure investment. The Trump administration says it hopes to send principles to Congress for the creation of an infrastructure bill later this year.
Generation Z, today's teenagers, are more likely to enjoy offline retail experiences, per Engagement Labs. "These teen retailers have an opportunity to increase sales and improve ... online performance by developing strategies and campaigns that encourage social media conversations," said Ed Keller, CEO of Engagement Labs.
Delta Shores, a 1 million-square-foot retail "power center," will open the first of its up to 70 retail stores and restaurants in September. The new Sacramento, Calif., property will see additional tenants open by the end of the year, including a Walmart, and a Regal Cinemas will open early next year.
Intersection, an Alphabet subsidiary, will work with Tavistock Development on the Lake Nona Town Center retail and entertainment project in Orlando, Fla. Tech firm Intersection's goal is to create a link between the digital world and brick-and-mortar stores.
Nicklaus of Florida has acquired the 15,078-square-foot retail center in St. Petersburg for $7.2 million, as well as the 74,300-square-foot property with a Publix in Riverview for $21.7 million. The Tampa Bay properties help the company broaden its portfolio.
- Page 1