Commercial Real Estate News Wrap Up From Liberty SBF: June 28, 2016

June 28, 2016

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Private equity real estate investors have begun to eye smaller assets in order to get more value for their money. In a survey by Preqin, 67% of real estate managers stated that it’s harder now than it was a year ago to find attractive assets, with more than 50% believing that this was currently their biggest issue. As such, according to Commercial Property Executive, investors have begun to look at smaller, more niche real estate investments. 26% of all deals completed year-to-date have involved smaller properties, with a 300% increase in niche markets such as senior housing.

Small business has begun to shake up the local mall ecosystem. Mall owners and operators have increasingly begun looking to small businesses as a way of providing unique experience to shoppers while also quickly filling vacancies in lieu of permanent tenants. Tom McGee, CEO of the International Council of Shopping Centers, reports that 85% of U.S shopping centers are neighborhood and community centers, of which almost half are occupied by locally owned small businesses. He attributes this to the brand loyalty these small businesses create, connecting with the people who live in nearby towns on a more personal level and bringing the community together.

The Brexit leads to uncertainty and a positive for REITS. Although the response to UK’s referendum on membership in the EU was not positive for much of the stock markets, it could lead to positive returns for US real estate investors. Rich Moore, an analyst with RBC Capital Markets, notified investors that “the [commercial real estate] industry could outperform the overall market by 100+ basis points today as investors seek security and stable cash flows.” Although the referendum will most likely have minimal direct impact on the U.S economy and US commercial real estate, investors are looking for more conservative investments, such as commercial real estate, in fear of other countries taking similar actions.

8+1 (That’s 9) Things You Need To Know

  1. CMBS Scrambles to Comply with New Regulatory Regime
  2. Creating Demand For Investment in Secured Loans
  3. Why Healthy Workspaces Are All The Rage
  4. As Baby Boomers Age, Is Our Architecture Failing Them?
  5. Multifamily Vacancies Rise Downtown
  6. The Hipster Generation Creating Opportunities For Urban Property Owners
  7. Speed and Information are Reshaping the Mortgage Business
  8. Why the 24-Hour City Matters For Commercial Real Estate
  9. E-Commerce Is Transforming the Industrial Real Estate Market