A shocking stat in New York’s hotel space, and what your smartphone can tell you about Seattle leasing
Mar 6, 2015
Here are the news stories you might have missed this week:
The New York Times: Hotel market staggers in New York City
In New York City, a troubling start to the new year has some questioning their crystal ball about the future of the hotel sector. In January, the industry watched as RevPAR, occupancy, and ADR all decreased, causing concern among many investors and developers. Some are worried that a stronger dollar and weaker global economy could impact international tourism to New York, and that higher interest rates might make new hotel construction and renovations even more costly. But others say that it’s too early to tell, and that a strong January in 2014 — led by a boost in numbers from Super Bowl visitors — created an unusually high comparison point. Still, many hotel operators and investors view their New York City properties as the linchpin of their portfolios. Read more on both views at NYTimes.com.
National Real Estate Investor: Have valuations peaked for seniors housing properties?
Despite all the talk of millennials, it’s senior housing properties that are seeing some of the strongest reports in commercial real estate. In Q4 2014, average sales values were up 64 percent since 2010, and transaction volume is projected to be second most on record. But valuations for these properties are complex: staff turnover, reputation, competition in the local market, and of course location all affect values. Looking forward, an interest rate increase could produce sudden volatility, and future values could be impacted. Learn more about the senior housing sector at NREIOnline.com.
The Tennessean: SoBro project may ease downtown office crunch
A new downtown Nashville development could bring additional office space and retail to SoBro, but some officials are wondering if the neighborhood can accommodate another big project. Nashville is in need of premium office space, with the central business district’s Class A properties touting a basement-low vacancy rate of 4.5 percent. But while new office space and the subsequent workforce additions mean good things for the economy, adding another 4,000 workers through this project and others could stress an already busy road and infrastructure system. To find out the full details, visit Tennessean.com.
Seattle PI: New apps bringing commercial real estate to life
Seattle is getting even more high tech. Today, 45 percent of leasing activity in the city is from tenants in the technology space. It should be no surprise then that a local start up is helping these new firms find commercial space in the Emerald City, and the Hightower app brings leasing information to smartphones. Though the app tracks vacant office spaces, the question remains if it’ll have a big effect in the larger industry. Learn about this new technology at SeattlePI.com.
Charleston Regional Business Journal: Shift to apartment living spurs growth
Charleston seems to be growing up right alongside one of the city’s most important demographics — millennials. This younger generation of workers is redefining what makes multifamily attractive, and the verdict is in: They prefer apartment communities that are within walking distance to prime city attractions and entertainment. Charleston’s 2014 annual growth rate clocked in at more than 6.5 percent, and occupancy rates and revenue growth were higher than comparable timeframes in 2013. Overall, millennials are changing perceptions of what’s luxury, and it’s causing developers to rethink what’s important. Learn more about Charleston’s CRE market, at CharlestonBusiness.com.
Author: Raymond T. Cirz