NREI Daily
Wealth Management FinTech
 

APRIL 18, 2019

Top Story

Retail

Despite ‘Retail Apocalypse,’ U.S. Grocery Store Openings Jumped 30 Percent in 2018

While a new report by investment firm USB estimates 75,000 more U.S. stores could close by 2026 as the shift to online shopping expands, it appears that the grocery sector continues bucking that trend. The report points to future closings of apparel stores, consumer electronics retailers and home furnishing stores, noting that online sales are expected to make up 26 percent of all retail sales in 2026, up from about 16 percent today.

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Analysis

Office

Institutional Investors Target Secondary Markets for Office Acquisitions

Institutional investors are increasingly moving away from primary office markets and targeting secondary cities, according to industry experts. The high cost of real estate in primary office markets has formed a significant barrier to entry for investors. The average sale price for office space has reached $439.05 per sq. ft. in primary office markets in March, up from $362.01 per sq. ft. five years ago. In secondary office markets, the average sale price hit $222.63 per sq. ft., up from $149.90 per sq. ft. five years ago, according to data from research firm the CoStar Group.

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Digital Edition

Proceed with Caution

Lenders are willing to finance retail properties, but are cautious when eyeing deals. Co-living properties gain in popularity with investors. Read these and other stories in NREI's April 2019 issue. 

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NREI Wire

Blackstone to Become Corporation as Assets Top $500 Billion

Blackstone Group LP will follow KKR and Ares Management in converting into a corporation.

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Opportunity Zone Rules Aim to Draw Capital to Distressed Areas

Opportunity Zone funds will have a more flexible timeline to invest in distressed areas, according to the newly released rules for the tax break.

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10 Must Reads for the CRE Industry Today

Large buildings, like the Empire State Building and Trump Tower, may face million-dollar fines unless they reduce their greenhouse gas emissions, reports The New York Times. MarketWatch looks at whether the 2017 tax reform has helped or hurt the housing market. These are among today’s must reads from around the commercial real estate industry.

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