The biggest mall owner in the U.S., Simon Property Group, is teaming with online shopping site Rue La La’s parent company to launch a new kind of website for people looking for deals. The real estate company announced Wednesday it’s partnering with Rue Gilt Groupe, which is backed by Michael Rubin, CEO of Fanatics’ parent company Kynetic, to create a new e-commerce business for discount shopping. Simon has been testing the website “ShopPremiumOutlets.com” since March, building on its premium outlet centers business. The mall owner operates dozens of premium outlet centers nationwide and a handful overseas. It’s been working with certain retailers at those centers — which include Woodbury Common Premium Outlets in New York — to test selling merchandise together on this site. It says it has signed on more than 2,000 designers, and has about 300,000 products. Click to read more at www.cnbc.com.
It’s clear that flexible space is playing an increasing role in the evolution of real estate and won’t be going away anytime soon. Our research predicts that while flexible space currently accounts for less than 5% of U.S. office stock, by 2030, 30% of office space will include some type of flexible space. Coworking, the fastest-growing sector of the broader flexible space movement, is on pace to become the top source of office leasing in the U.S. In the first half of 2019, coworking accounted for more than 10.1 million square feet of leased space, according to JLL research. That’s more space than was leased by finance and insurance companies, which historically have been significant consumers of space, just behind technology companies. While the growth in coworking will affect players in all parts of the real estate process, there are opportunities and implications for property managers that are significant and need to be considered proactively. Property managers will need to understand if and how flexible space makes sense for their asset, whether that’s leasing space to a coworking operator, creating their own coworking space or managing tenant amenity space within their asset. Click here to read more at www.crej.com.
Lawrence, Kansas, USA (September 30, 2019) – Commercial Real Estate Women (CREW) Network has been advancing women in commercial real estate for 30 years and has introduced a new brand establishing CREW as the premier global business organization leading women and the industry into the future. The new brand was introduced on September 27 to 1,200 commercial real estate leaders attending the 2019 CREW Network Convention and Marketplace in Orlando, Florida. “This new visual identity represents the bold and modern organization that is CREW Network,” said CREW Network President Holly Neber, CEO of AEI Consultants. “For more than 30 years, our members have found success with CREW Network. We are focused first on the success of our members, as the place for commercial real estate women to become more successful business professionals, deal makers, and leaders. Our new brand is also a statement of our intentional commitment to transform the commercial real estate industry to be diverse, inclusive and equitable for all.” Click to read more at www.realmassive.com.
Hello all, I am trying to get my head around how people are thinking about cap rates in the multifamily sector in the coming years. I have found a lot of investor presentations, proformas, etc for mid-rise multifamily development deals from the last 24 months across the U.S that are contemplating scenarios with cap rate compression, no change, or only slight expansion. Given how low-interest rates are, and the distance rumblings of a possible recession looming, it is so crazy to assume a 5 basis point expansion per year? 10 basis points? Click to read more at www.wallstreetoasis.com.
It’s easy to think that the retail market across the country is dying. But that’s simply not true. There are plenty of retailers who are thriving, even in the bricks-and-mortar world. These retailers tend to offer something that customers can’t simply order through Amazon. Or they offer experiences that consumers enjoy and come back for. Then there are the restaurants, fitness centers, discounters and beauty salons. Many of these are doing well again because they are offering something Amazon can’t provide. This trend is no different in Omaha. Ben Meier, vice president of brokerage services at Omaha’s The Lerner Company, said that there is no one way to sum up Omaha’s retail sector today. Some retailers here are booming. Others are struggling. What sets the two apart? Usually the old-fashioned things: location, visibility, and the products being sold. Click to read more at www.rejournals.com.
Industrial real estate is no longer simply the steady workhorse operating quietly behind the scenes. The market sector has jumped to the forefront as the property everyone is talking about. That attention is well deserved, with secular shifts that are spurring steady demand for space and overall performance that is tough to ignore. According to the NCREIF Property Index, industrial is expected to generate returns of 10.3 percent this year, well ahead of the 6 percent returns expected in both office and apartments and 2.9 percent for retail. The market has been riding a significant tailwind from e-commerce, and that breeze is only expected to grow stronger. “Logistics real estate remains strong and, in most markets, customers are waiting for new supply to come online due to the limited availability of standing inventory in nearly all U.S. cities,” says Kim Snyder, president of the west region at Prologis. Industrial also is seeing demand coming from sources across the board – third-party logistics and logistics firms, manufacturers, light assembly, and even cannabis growers. According to the Urban Land Institute’s Real Estate Economic Forecast for Spring 2019, the industrial/warehouse vacancy rate is hovering around 7 percent, well below its 20-year average of 10.2 percent. CBRE puts warehouse vacancies even lower, at 4.4 percent. Industry sources agree that demand has been fueling a surge in warehouse development in recent years. Click to read more at www.ccim.com.