Black Friday deals for Target and Amazon are bundling Micron memory cards with GoPro cameras thanks to information derived from online sales. Micron studied the attachment of its products' sales with a variety of camera options and showed retailers they were missing out on increased revenue opportunities. "The irony here is we actually used online data to drive an in-store promotion," said Micron's Wes Brewer.
Douglas Emmett is reportedly negotiating with Blackstone Group LP to buy four office towers totaling more than 1.7 million square feet in Los Angeles, at a cost of more than $1 billion, sources say.
The student-housing asset class remains solid despite macroeconomic headwinds, according to Bill Bayless, president and CEO of American Campus Communities. Rents consistently rise each year at rates of 2.5% to 3.25%. "In the 11 years that we have been public, we’ve never had a negative year of rental-rate growth," Bayless said.
Alexandria Real Estate Equities is planning to develop a 56-acre site at Research Triangle Park in North Carolina into a 1 million-square-foot campus for life science and agricultural technology companies. The first phase is underway. A building is being renovated for emerging companies and is scheduled to open in the spring.
Broadstone Real Estate is preparing to "scale up" in the single-family home market, says CEO Amy Tait. Broadstone’s private REIT Broadtree Homes has 200 single-family homes under contract and sees "the best buying opportunities of existing stabilized portfolios that we’ve seen in three years," Tait says.
More regional and community banks are moving back into retail investments faster than other lenders as a result of improving fundamentals. In 2011, regional banks represented less than 10% of commercial real estate lending, but that figure improved to 14% in 2014, Real Capital Analytics reports.
The US is in a rental-affordability crisis, says
Zillow CEO Spencer Rascoff. Americans spend 30% of their income on rent, compared with 21% in earlier eras. In some cities, rent is 50% of pretax income, Rascoff says, which is "completely unsustainable.” Home buying is cheaper, he says.
The Tysons Corner submarket in northern Virginia, already a bustling enclave, is booming with construction projects in anticipation of a Metro line extension. Next year, construction will begin on five projects with more than 4.5 million square feet, following the seven major projects currently in development.
Sprawling mall developments are becoming a thing of the past as more retail centers convert to other uses -- such as Highland Mall in Austin, Texas, becoming a community college -- or add amenities such as playgrounds to attract shoppers. CoStar predicts that by the end of the year there will be 48.3 square feet of retail space per person in the US, down from 49.8 in 2009. The decline will continue through at least 2020.
- Page 1