Commercial Real Estate News Wrap Up From Liberty SBFMay 24, 2016
RECon, the global convention for the shopping center industry kicked off last Sunday in Las Vegas. Ahead of the event, GlobeSt.com ran an article that said the vibe was eagerness with executives saying that they were looking forward to the event to meet with business partners and talk about the sector. “I am personally very optimistic, and I haven’t come across one single person who is not optimistic about RECon,” said Kenneth Lamy, founder, president and CEO of DataPoint International. Meanwhile, the hashtag #RECon16 was being used to talk about the event on Twitter. One photo of a slide tweeted by NAR Commercial showed that there was a lot of growth for dollar stores. Dollar General planned to grow by 900+ stores.
Supply isn’t coming close to feeding demand in the industrial sector. According to a story in National Real Estate Investor, a boom in e-commerce and port growth is cutting into the market. Industrial vacancy in popular markets is near zero. “Developers are building and delivering more logistics buildings but the supply can’t keep up with demand,” said David Egan, CBRE’s head of industrial and logistics research for the Americas. “Therefore, industrial occupiers should expect to see rents rising for a while longer.” In places where the demand for creative office space is highest like San Francisco, industrial is also losing out as owners are priced out of the market. In the active Northeast, New Jersey and Long Island are seeing demand driven up by scarcity with nothing new coming online anytime soon.
Is a rate hike on the horizon? According to Eric Rosengren, president of the Federal Reserve Bank of Boston, conditions are “on the verge of broadly being met.” Fortune magazine reported that the minutes of the April meeting released by the Federal Reserve shows officials believe another hike could come as soon as June.
8+1 (That’s 9) Things You Need To Know
- How CRE is changing residential housing
- A market of “haves” and have-nots” emerging in mall market
- Will there be an Uber-like disruption in CRE?
- 2016 set to be a benchmark year in CRE
- $2.3B in new conduit issues spur most issuance activity in months
- Real Estate professionals gather to raise $960K for cancer research
- Is volatility near term normal?
- San Diego wants to be largest U.S. city completely powered by renewable energy
- Hope for a revival in business as Rams move back to LA