SEPTEMBER 21, 2019

Top Stories

Finance & Investment

ULI, PwC Emerging Trends Report Forecasts Continued Strength in CRE in 2020

By Sebastian Obando, Staff Writer

The commercial real estate market remains strong, despite talk of an approaching recession, according to an Emerging Trends in Real Estate 2020 report produced by the Urban Land Institute (ULI) and consulting firm PwC and released at this week’s ULI fall meeting. “Real estate is in a very good space,” said Mitch Roschelle, partner and business development leader with PwC, at the event. “The real estate community caused two recessions: it caused it in housing, and it caused it in the savings and loan crisis. This go-around, whatever happens, it ain’t going to be [real estate’s] fault.”

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Finance & Investment

CRE Financing Provider Says the GSEs Need Recapitalization Rather Than Legislative Reform

By Beth Mattson-Teig, Contributing Writer

On Sept. 5th, the Treasury Department released a comprehensive plan to reform Fannie Mae and Freddie Mac. Specifically, the 50-page document outlined administrative and legislative steps that need to be taken to define a more limited role for the federal government in the housing finance system, enhance taxpayer protections against future bailouts and promote competition in the housing finance system.

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Multifamily

Multifamily Investors, Spooked by Tougher Laws, Are Pushing Cap Rates Higher in Markets with Rent Control

By Bendix Anderson, Contributing Writer

Investors are starting to pay less for apartment properties in markets that have some kind of rent regulation laws on the books. In addition to New York, cap rates on apartment properties rose in cities in California, according to research firm Real Capital Analytics (RCA). The existing rent regulations in California didn’t change over the time period looked at by RCA researchers, though lawmakers there just approved broad new rent caps on Sept. 11th.

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Analysis

Finance & Investment

PREA Survey Continues to Show Expectations of Moderating Growth, but Sentiment Ticked Up from the Second Quarter

By Elaine Misonzhnik, Executive Editor

The latest results from the consensus forecast survey of the Pension Real Estate Association (PREA) show members continue to expect moderating returns growth on commercial real estate assets. However, the numbers ticked up slightly compared to the second quarter forecast.

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Retail

Subscription-Based Retailers Getting in on Physical Store Action

By Liz Wolf, Contributing Writer

What do Birchbox, Adore Me, Rent the Runway, Frank & Oak and Fabletics all have in common? Yes, they’re all digitally native brands, but more specifically, they’re subscription-based retailers that are counting on their built-in customer base and name recognition to open bricks-and-mortar stores across the country.

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Office

Does the Spike in Net Lease Office Acquisitions Signal Waning Confidence in Economy?

By Patricia Kirk, Contributing Writer

Investment in net lease office real estate more than doubled in the second quarter of this year, going up by 65.7 percent compared to the second quarter of 2018 to $8.2 billion, according to research from real estate services firm CBRE. Investment in net lease real estate overall, including office, industrial and retail properties, increased by 33.8 percent to $20.6 billion—a record since CBRE began tracking the market in 2002.

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Commentary

Alternative Properties

Five Emerging Markets for Hotel Investors

By John Plasencia

High prices in first-tier cities are forcing many investors to consider other cities in search of better value, a trend that is likely to continue through 2020. These secondary or tertiary venues have now become increasingly attractive to investors who found themselves priced out of the traditional primary locations.

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NREI Wire

U.S. Household Net Worth Increases $1.8 Trillion

Bloomberg

Household and non-profit group net worth increased by 1.6 percent from the first quarter.

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