The Scoop on Interest Rates — Now or Later

The Scoop on Interest Rates — Now or Later

Rates to stay the same, but it’s just a matter of time. What does it mean for #CRE?

nyc skyline

GlobeSt tell us what it means to investment, capital flow and debt maturing.

Marcus & Millichap provides an in depth look and says it will likely spark a new round of questions about the strength of the US economy. 

Reuters says an increase won’t be enough to cool the hot NY CRE market.

Marketwatch.com looks broadly at whether interest rate changes can forestall asset bubbles. Did moving too slow cause previous financial turmoil?

Wealth Management looks at how it will affect investment, particularly REITS.

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And, in the UK, the Wall Street Journal says an increase by the Bank of England would mean an end to the property boom there.

Self Storage Market

Chicago

globest longThe self-storage market is at all-time occupancy highs and shows no sign of losing steam, according to GlobeSt. Two large self-storage operators, Public Storage and Extra Space Storage, have seen their occupancy rates increase from approximately 85% a couple years ago to 95.4% and 94.5% this 2nd quarter, respectively.

What does this mean for investors? Investors continue to try to enter the market to meet these record-breaking demands for self-storage units. Click here for more.

Carnegie Hall Goes Green and More

Carnegie Hall Goes Green and More

What’s new this week? We continue to see hot and competitive multifamily markets, shifts towards greener properties, and, of course, a self-storage market that is breaking records.

New York

Carnegie HCarnegie-Hall-300x225all, New York’s famous concert hall that has been in Manhattan since 1891, has achieved U.S. Green Building Council’s LEED Silver Certification. With the help of Siemens, Carnegie Hall has decreased its carbon footprint, reports
Commercial Property Executive
. The project included the following:

  • More efficient and conscious heating, venting, and air conditioning made possible by an APOGEE building automation system
  • Increased natural lighting in the hall by capitalizing on the building’s 450 original windows.
  • Creation of a 10,000 SF rooftop terrace which works to decrease the carbon footprint

Other New York historic buildings with LEED certification? The Empire State Building and the Chrysler Building.

Washington D.C. and All Major Metro Areas

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Millennials Are Shaping Multifamily, Office

Millennials Are Shaping Multifamily, Office

Atlanta

Strong multifamily growth supported by urbanization and continued job growth. Atlanta is reflecting the national trend of city migration. Millennials desire long-term renting in the city with access to trendy amenities and nearby city entertainment, and Baby-boomers are following suit. According to a CBRE report, the apartment vacancy rate is 4.8% with a home-ownership rate of 63.4%–the lowest since 1967.  Popular Atlanta submarkets for Millennials and other renters include Buckhead, Midtown, Old Fourth Ward, and Inman Park. Find out more here

Millennials are a target for this Buckhead development in Atlanta

Find out more on this Buckhead multifamily development. 

Orange County

Next-generation office developments are the trend in city centers like Orange County.

Irvine Co. is developing six next-generation office structures. Nicknamed “next-gen” office buildings, these developments intend to balance productivity and efficiency along with modern collaborative features in the workplace—features including cafes, wellness-centers, and other indoor and outdoor activities. The developers say the campuses they are building are not totally unlike college campuses. The “amenities race” is not limited to multifamily. Check it out in this office development story.

Hotel Investment News

Hotel Investment News

U.S. Hotel Investment: Aug. 2015

Hotels have been hot investments lately. Here’s a snapshot of what’s going on in the market:

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Chicago-area hotel investment sales are strongest since the recession, as increasing occupancies and higher room rates increase hotel profits. As seen in Crain’s Chicago Business, a Kentucky-based affiliate of Colombia Sussex purchased the Marriott Chicago O’Hare for $72 Million this week. The hotel developer’s purchase also included a New Jersey Marriott.

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Hotel Investment extends to Chicago’s suburban hotel market. According to Hospitality Real Estate Counselors, in 2014, there were 26 hotel transactions with a value of $300 million, a 30 percent increase from 2013. In 2015, there has already been 21 hotels sold in Chicago’s suburbs, totaling at a value of $225 million. Recent transactions include the Hyatt Lisle and the Embassy Suites Chicago-Schaumberg/Woodfield. See this
GlobeSt story
for more.
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Office Trends and Investment News

Office Trends and Investment News

From New York to Los Angeles, here are some of the latest office trends and investment news items. 

NATIONAL

Global Logistics Properties is on another buying spree, announcing plans to buy a 100-property industrial portfolio from Industrial Income Trust for $4.55 billion. The assets are in 20 major markets, with many in L.A., Washington, DC metro area and Pennsylvania. See today’s 
GlobeSt. story
 for commentary from Avison Young on why this is happening. 

CHICAGO


Minnnew_dusk01_sm_withCrediteapolis-based Ryan Companies is starting construction on a 31-story, 373-unit tower, 833 North Clark Street Apartments, in Chicago’s Gold Coast. The project will be built on a 41,000-square-foot site that was purchased from U.S. Bank.

 

Chicago office market sees ongoing boost from suburban to city migration. As ConAgra announces plans to move to the Merchandise Mart, GlobeSt talks with Avison Young for a broader perspective on what this means long term to Chicago CRE.

Also…The increased demand for industrial real estate continues. Dallas-based Hillwood Investment Properties, a Perot company, acquired three class A industrial properties totaling 170,000 K SF in Chicago’s Tinley Park. 

NEW YORK


FAO imageThe exceedingly high cost of street-level land in Manhattan leads businesses to seek refuge elsewhere… like underground. This week the famous F.A.O. Schwartz closed down their doors after 29 years in exchange for a less-expensive subterranean, two-story location on Broadway.

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Ryan Companies Starts 31-Story Multifamily Tower

7.26.2015

Chicago Multifamily Update

new_building_day03_sm_withCredit-819x1024 smallMinneapolis-based Ryan Companies is starting construction on a 31-story, 373-unit multifamily tower, 833 North Clark Street Apartments, at the southeast corner of Clark and Chestnut Streets in Chicago. The project will be built on a 41,000-square-foot site that was purchased from U.S. Bank.

The development team, which includes Lincoln Properties, recently purchased the land parcel and closed on an $88 million construction loan with U.S. Bank For more news coverage, check out Crain’s Chicago Business and the Ilinois Real Estate Journal.

 

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