Commercial Real Estate News Wrap Up: April 6, 2016
Supply in the hotel market might be finally meeting demand. According to a report released by Marcus & Millichap on the hospitality industry, they see completion of new projects will translate into a 1.6% increase in available rooms by the end of the year. “Brands continue to open new locations and a large construction pipeline remains in place, potentially disrupting the performance of existing properties when new rooms come online,” according to the report . “The US hotel sector has reached a turning point. Following several years of rising occupancy, new supply will finally accelerate sufficiently to balance demand.”
Republican presidential candidate and current front-runner predicts doom and gloom for the economy. Trump points to high unemployment and overvalued stocks as the reasons for his forecasting. “I think we’re sitting on an economic bubble. A financial bubble,” Trump was quoted as saying recently. When he becomes president – something that he presumes is a forgone conclusion – Trump will be “renegotiating all of our deals, the big trade deals that we’re doing so badly on.” Some economists disagree with Trump’s opinion. “There are some green shoots appearing this spring in the economic data which makes us more confident that 2016 is going to be a good year,” said Chris Rupkey of Bank of Tokyo-Mitsubishi.
The office market is set to have another solid year. According to stats released by JLL, tenants absorbed about 7.7 million square feet of space in the top 50 markets in Q1, below the numbers from Q4 2015 but above the 6.3 million square feet posted in Q1 last year. Globest.com reported a “good deal of expansionary activity” is to come in 2016. More than four million square feet of new space is under construction in the top markets, led by New York with about 14.3 million.
8+1 (That’s 9) Things You Need To Know
- A fruitful March yields a banner quarter for job growth
- There’s unmet demand for larger units in rental housing
- Net Lease investors show greater interest in industrial assets
- Why two-thirds of real estate investors will spend more in 2016
- MetLife’s shedding of ‘too big to fail’ designation could boost CRE lending
- Largest Starbucks in the world to open in NYC
- Slideshow: Four imaginative skyscrapers of the future
- Apartment vacancies up, rents increasing in Q1
- What to watch for in Fed minutes