In case you missed it: Gutsy investors make huge profits, Amazon.com buys Seattle campus, FDIC’s stress test rules released
Oct 12, 2012
Last week’s BLS jobs numbers dominated news cycles, but this week brought several more indicators of the health of the economy, such as hotel construction and an example of rising commercial property values in New York. Take a couple minutes to read these stories and more:
New York Times: “A Building Boom in New York Hotel Rooms”
New York’s hotel sector is exploding as developers added 4,404 new hotel rooms in 2011, an annual increase of 5.9 percent. Experts predict a 3.5 percent increase in new hotel rooms for 2012 and a 4.1 percent jump in 2013. Despite so much construction, tourists and business travelers continue to fill up new rooms, driving occupancy rates and revenues close to prerecession levels. Click through to the New York Times for additional information.
Wall Street Journal: “Being Gutsy Brings Glory in Commercial Property”
Gutsy investors who purchased office buildings, hotels, and apartments during the recession are now selling them for huge profits. One Worldwide Plaza, an office tower in Midtown Manhattan, was purchased in 2009 for about $600 million by George Comfort & Sons Inc. George Comfort now aims to sell the 1.8 million-square-foot tower for $1.5 billion, and has already received several bids of well over $1 billion. For more on this story, switch over to the Wall Street Journal.
GlobeSt.com: “CRE Preps for FDIC’s New Stress Test Rules”
The Federal Deposit Insurance Corporation (FDIC) released the new stress testing guidelines required by the Dodd-Frank Act. The new law takes effect this year for institutions with assets greater than $50 billion. However, institutions with assets between $10 billion and $50 billion have until October 2013 to begin compliance. Head over to GlobeSt.com to find out how this provision will affect the commercial real estate industry.
Los Angeles Times: “Amazon.com to buy its Seattle campus for $1.16 billion”
Amazon.com made a $23 million deposit to buy its 11-building Seattle headquarters. Overall, the company will pay $1.16 billion for the 1.8 million square feet of office space that the company had been leasing. Jump over to the Los Angeles Times for all the details.
Author: Raymond T. Cirz