AUGUST 10, 2019

Top Stories

Finance & Investment

Publicly-Traded REITs Tap Equity Markets for Cash

By Beth Mattson-Teig, Contributing Writer

REITs are taking advantage of a healthy rise in stock prices this year to issue new stock. According to a second quarter report from consulting firm PwC, REIT capital raising surged 86 percent in the first half of 2019 to $44.4 billion. Second quarter alone generated 54 equity offerings—the largest quarterly total since the third quarter of 2017.

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Multifamily

Apartment Cap Rates Creep Higher in the Country’s Top Markets

By Bendix Anderson, Contributing Writer

There are a handful of markets—New York City, San Francisco, Los Angeles and Chicago—where multifamily cap rates have inched higher. These are some of the same markets where developers have built the most new apartment units in recent years. Housing advocates have also pressed lawmakers to pass new rent control laws in New York City, California and Chicago, worrying some investors.

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Retail

Can the American Dream Mega-Mall Succeed in a Changing Retail World?

By Liz Wolf, Contributing Writer

Some experts question whether that area needs another upscale fashion destination, with its proximity to Manhattan and The Mall at Short Hills. American Dream’s luxury retail section might be at most risk. American Dream is likely to become a tourist destination, but there will be “pockets of retail, perhaps large pockets, that are not successful.”

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Analysis

Finance & Investment

Is the CRE Industry Getting Any More Diverse?

By Sibley Fleming, Contributing Writer

In July, Avant-Garde hosted its first Diversity in Commercial Real Estate Conference at Columbia University in New York City. The event drew more than 600 attendees to hear some of the industry’s top players of color, including former Real Estate Board of New York President John A. Banks, WeWork’s Global Head Craig Robinson, Goldman Sachs Partner and Urban Investment Group Head Margaret Anadu and Netflix Director of Corporate Real Estate London Kemp, among others. NREI recently spoke to Adejobi about some of the key takeaways from the event and the state of diversity in commercial real estate today.

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Retail

What We Know So Far About Barney’s Bankruptcy and Store Closing Plans

By Elaine Misonzhnik, Executive Editor

At the time of the bankruptcy filing, Barney’s carried approximately $200 million in debt. Company executives plan to use its new financing to find a buyer for the chain within a 60-day period. If a buyer can’t be found, the retailer will have to liquidate.

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Multifamily

Smaller Apartment Units Outperform the Market on Both Vacancy and Rents

By Sebastian Obando, Staff Writer

The smallest 25 percent of one-bedrooms in the U.S. have lower vacancy rates compared to larger one-bedrooms, according to research firm the CoStar Group. For these smaller units, the average vacancy rate hovers around 5.0 percent, while the vacancy rate for larger one-bedrooms averages around 5.5 percent. In core urban submarkets, the vacancy rate for smaller units is around 3.0 percent, while the vacancy rate for larger one-bedrooms is slightly above 3.5 percent.

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Commentary

Multifamily

How Today’s Rental Property Owners Can Prepare for Marijuana Legislation

By Stacy Brown

Ten years ago, there were only 13 states in the U.S. with laws allowing medical marijuana use and zero allowing recreational use. By the end of 2018, 33 states and Canada had legalized medical marijuana and 10 of these states allowed recreational use. These figures are continuously on the rise as legislation is passed in more states and municipalities. At this rapid rate of change, the possibility of major federal marijuana reform is on the horizon as well.

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NREI Wire

Alabama Pension Funds Star in IPic Theater Bankruptcy: Brian Chappatta

Bloomberg

The Retirement Systems of Alabama agreed to provide a $16 million debtor-in-possession loan to the movie theater chain.

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