Investors have several ways to take advantage of aging demographics, including real estate investment trusts and REIT exchange-traded funds familiar with the senior-housing market. "There's a lot of exposure there while still having diversification," says Erika Jensen, president of Respire Wealth Management.
Alexandria Real Estate Equities CEO Joel Marcus says the gambles the REIT made several years ago -- investing in urban biotech campuses on both US coasts -- are paying dividends. The trust has a history of being on top of trends, he says, pointing to its 70% margins and its total return, which has exceeded 1,000%.
Tinker Air Force Base in Oklahoma City has a $1.6 billion payroll and 31,000 workers, which continues to help retail in nearby Midwest City. The Town Center area is now home to 50 tenants, and it attracts visitors from around the state.
An area in southwestern Colorado Springs, Colo., has three developers working to build an urban renewal district. The first project is The Broadmoor Shoppes, which will include a grocer and restaurants, while other developments will include apartments, townhouses, a hotel and about 9,000 square feet of retail space.
Existing-home sales increased 0.7% to a seasonally adjusted annual rate of 5.39 million units in September, an unexpected bump as the disruption caused by hurricanes Harvey and Irma lessens, according to the National Association of Realtors. Economists polled by Reuters had expected sales to drop 1%.
A regulatory filing by BGC Partners indicated that
one of the two equity analysts that covers it has suspended its research, a move that is "consistent with such financial institution receiving information regarding potential participation in an initial public offering." BGC's proposed spinoff of Newmark Knight Frank has been a closely watched development in the CRE industry, along with an IPO expected by Cushman & Wakefield.
The value of sovereign wealth funds' deals for the third quarter dropped to $14.1 billion, down from a revised $28.3 billion in the second quarter, according to Thomson Reuters data. China Investment Corp. and Singapore's GIC have been the most active, with CIC's $13.7 billion acquisition of warehouse firm Logicor inflating Q2's total.
The availability and affordability of housing could become an issue in the city that lands Amazon's second quarters, if Seattle's experiences are any guide. "People who will feel left out will be those forced out by higher rents, and pushed out further into outer suburbs, the one negative side-effect of major high-paying jobs coming in," Lawrence Yun, chief economist with the National Association of Realtors, says.
Apartment renters are older than in previous years and better educated, according to a report by RentCafé that uses Census Bureau data. The number of people aged 55 and older who were renting between 2009 and 2015 rose by 2.5 million, or 28%, compared to the increase of 1.95 million of renters aged 35-54 and 0.5 million of renters aged 34 or younger.
A range of technology is affecting commercial real estate, including Wi-Fi ads and self-driving cars, according to a report by the Massachusetts Institute of Technology's Urban Economics Lab at the Center for Real Estate. Other examples include technology usage by brick-and-mortar stores and sophisticated sustainability technology.
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