The spending prediction for nonresidential construction this year has been revised upward to 4.7% from the 4% forecast in January, according to the American Institute of Architects' Construction Consensus Forecast. The panel of entities surveyed, which included Dodge Data & Analytics and Associated Builders and Contractors, also upgraded its forecast for 2019 to 4%, from 3.9%.
Two more increases in short-term interest rates are likely to emerge from the Federal Reserve in 2018, with one in September and another in December, a Wall Street Journal survey of economists finds. Federal Reserve Bank of Chicago President Charles Evans says economic growth could set the stage for one or two more increases this year, while Federal Reserve Bank of Richmond President Thomas Barkin says economic growth will determine the amount of any such increases.
At a special meeting held Thursday, Gramercy Property Trust stockholders voted to approve the REIT's $7.6 billion acquisition by Blackstone Real Estate Partners VIII. The all-cash deal is expected to close within the next two months.
Demand was moderate to strong across most major commercial property sectors in the second quarter, which helped keep vacancy rates low and rents rising. Nareit researchers Calvin Schnure and Alexandra Thompson discuss the recent trends in supply, demand, vacancy rates and rent growth.
Affordable housing provider Front Yard Residential Corp. paid $485 million for a 3,236-unit portfolio of affordable single-family homes from HavenBrook Partners, a property manager that Front Yard also acquired in the deal. Freddie Mac, through Berkadia Commercial Mortgage, provided some financing for the acquisition.
Big-box retailers, inspired by Walmart's experimentation, are developing small-store concepts to test. Target, Kohl's, IKEA and Nordstrom are other examples of retailers creating stores with smaller footprints, especially in urban areas.
New Senior Investment Group is bringing operations in-house as part of a continuing strategic review. The REIT has proposed paying external management Fortress Investment Group $50 million as part of its internalization, which drew criticism from some shareholders.
Denver's Stanley Marketplace, a $30 million retail center that was fully leased before breaking ground, includes a space that was once a hangar; it is an example of how US retail developers are changing the retail shopping experience by adding eccentricities. In St. Louis, a European-style food hall will soon emerge in a 90-year-old foundry, while a new project near the Las Vegas strip will feature Burning Man Festival art, as well as a large performance venue.
The largest operator of retail centers in Brazil, BR Malls Participacoes, reported second-quarter net income of $33.4 million, up 114% year-over-year and in line with analysts' expectations.
The 50,168-square-foot Natomas Shopping Center in Sacramento has been traded between private investors for $10.3 million. The CVS Pharmacy- and ACE Hardware-anchored property spans seven acres and was sold in a 1031 exchange with a 6.3% cap rate.