Pop-up shops are on the rise as malls look to fill spaces left by departing department stores and merchants seek affordable spaces to try out new products and hold seasonal sales. Temporary shops help malls refresh their offerings frequently, giving shoppers a reason to return more often, says University of Florida lecturer Steve Kirn.
San Diego-based real estate firm Innovative Industrial Properties has filed with the Securities and Exchange Commission to become publicly traded on the New York Stock Exchange. The company, which will own buildings used to grow medical marijuana, hopes to net $175 million from an initial public offering.
Morningstar Credit Ratings says that $128 billion in commercial real estate loans are set to refinance by the end of 2017, and this could put pressure on investors. Deutsche Bank, Morgan Stanley and others say as much as half of all commercial mortgage-backed securities could have trouble getting financing.
Banking regulators have proposed cybersecurity rules that would require institutions considered systemically risky to prove they can run major operations within two hours of an attack or a large systems failure. Other requirements include a cybersecurity risk-management plan that is incorporated into the business strategy.
Real estate's stand-alone listing in the Global Industry Classification Standard is highlighting differences between it and the rest of the financial sector, including correlation with the broader Standard & Poor's 500 index and the relationship to interest-rate movement. Since the categories split, real estate has fallen 1.2% while financials have risen 2%.
Cantor Fitzgerald announced plans to launch a public non-listed REIT, Rodin Global Property Trust, that will invest in single-tenant, net-leased commercial properties in the US, UK and Europe. It expects to raise up to $1 billion.
The commercial real estate market is in the latter part of the cycle, but some observers are becoming too negative about its prospects, says Blackstone Group Global Head of Real Estate Jonathan Gray. While rising interest rates are a focus, fundamentals are favorable and real estate "did OK" in past periods of rate increases, he said.
Overall US housing starts fell 9% in September, with the volatile multifamily segment down 38% and single-family starts up 8.1%. Permits rose 6.3%, signaling a likely pickup in activity in the coming months.
- Page 1