Archive for January, 2016

Cap Rates Fall in Secondary and Tertiary Markets

The spreads are now more in line with those in the six major metros. Read full story Read more

China GDP: Slowdown or Deterioration?

Economic growth in China has clearly slowed over the past few years, and data released this morning indicated the slowdown continued in Q4 2015. Full year growth for 2015 ended up roughly half a percentage point below the rate registered in 2014, with most of the deceleration concentrated in the country’s industrial and construction sectors. Read full story Read more

RKF CEO: Why retail rental rates will continue rising

RKF CEO Robert Futterman says retail rents in US cities such as New York, Miami and Chicago should continue to increase because it is still important for retailers' corporate identities to have a brick-and-mortar presence. Residential growth and international tourism are also boosting retail. Read full story Read more

What Does the Central Bank Canoe Theory Mean for Investors?

While the anticipated path of future Fed rate hikes is likely not in and of itself a significant threat to commercial real estate cap rates, wise investors will keep an eye on two interest rate-related factors that could negatively impact cap rates and catch the myopic investor off guard. Read full story Read more

Top News Multifamily market’s strength draws newcomers

Continued high demand for apartments is attracting more investment, including companies that traditionally focus on office, retail and single-family homes. These new entrants are driving up land costs, some say. Much of the new supply is being built for the high end of the market. Read full story Read more

US property could benefit from China’s volatility

Blackstone Group acquired $9.6 billion of real estate in the New York area last year, the most of any company, according to Real Capital Analytics. It sold $4.2 billion worth of local assets. Altogether, Blackstone was involved in 21% of all commercial property transactions in Manhattan. Read full story Read more

Sales slump prompts Macy’s to cut jobs, rethink real estate

Macy's reported a 4.7% decline in existing-store sales for November and December. The retailer said it would cut as many as 4,800 jobs and hire more advisers to consider joint ventures for its real estate holdings. Macy's and other traditional retailers are struggling as shoppers seek off-price chains and do more shopping online. Read full story Read more

Apartment rent increases rising at fastest pace in years

Average effective apartment rents nationwide rose 4.6% last year to nearly $1,180, Reis reports. This was the fastest pace since 2007. According to Axiometrics, multifamily rents rose 4.7% in the fourth quarter year over year, the strongest performance since 2005 for that quarter. Read full story Read more

Foreign JV buys US student-housing portfolio for $1.4B

A joint venture consisting of the Canada Pension Plan Investment Board, Singapore's GIC Pte. and the Scion Group LLC is making a $1.4 billion acquisition in the US student-housing market. It has acquired University House Communities Group from InvenTrust Properties Corp. The JV, in which CPPIB and GIC own 47.5% each and Scion owns 5%, says it wants to make other student-housing acquisitions. Read full story Read more

Fed’s large reverse repo award to help push up interest rates

Moving to drain liquidity from the US financial system, the Federal Reserve made the third-largest reverse repurchase agreement award ever Wednesday. The auction awarded $277.45 billion of one-day fixed-rate reverse repos carrying a 0.25% interest rate to 82 bidders. Read full story Read more

2016 will test US bull market, analysts say

Analysts expect 2016 to be marked by a continued conflict between the Federal Reserve's efforts to raise interest rates in a strengthening job market and attempts to lower rates around the world amid China's economic slump. Investors expect another difficult year of tumultuous markets and narrow profit margins. Read full story Read more