Commercial Real Estate News Wrap Up: April 27, 2016
Google might be getting into the CRE business. Alphabet (Google’s parent company) is listening to a plan from Sidewalk Labs to get into the city-building business. According to a report in Bisnow, the proposal involves “developing giant new districts of housing, offices and retail within existing cities—all heavily integrated with technology.” The idea is to find areas that a city wants to redevelop for Alphabet to build proof of concept “smart city” districts for self-driving cars and other technologically innovative infrastructure.
CRE fundamentals show continuing strength while industrial and retail led performance for Q1, according to the NCREIF Property Index. Globest.com reported that CRE returns continued to moderate in Q1 but “investment sales volume on properties within the NCREIF universe was up by double digits year over year.” Occupancy across all property types was up to 93%, the highest since 2001.
Calculating the savings to retrofit older buildings with more energy efficient systems has prevented many owners from taking the plunge. According to a post published on the EDF.org website, the U.S. spends over $400 billion on energy for our buildings per year. Many of the buildings are older and could be made more efficient saving millions of dollars annually. The Environmental Defense Fund has developed an Investor Confidence Project (ICP) certification for Investor Ready Energy Efficiency™ projects that “takes the guesswork out of energy efficiency performance metrics,” according to its website. The certification helps owners take the guesswork out of a new energy investment and measures the investment over time.
8+1 (That’s 9) Things You Need To Know
- Sears closings could signal new wave of anchor store downsizing
- New environmental plan for NYC is “ambitious”
- Regional banks fuel second straight week of bank stocks rally
- Spec construction on the rise in Industrial sector
- 10 buildings that tell the story of Boston
- The people behind JLL’s young guns
- What gets lenders comfortable when looking at foreign money?
- Predictions for retail in advance of RECon
- Austin rental market shows no sign of cooling