New commercial development stays hot in California, and why Miami soccer fields are stories high
Feb 2, 2015
Here are the news stories you might have missed last week:
Los Angeles Times: California developers expect to build more commercial space through 2017
There’s a gold rush in the California commercial real estate market, and current forecasts show local professionals are optimistic about growth in multiple sectors. Real estate professionals are bullish on the market thanks to job growth and an increase in port trading. Plus, new commercial space — especially multifamily — is expected to increase through 2017. In the past 12 months, 47 percent of professionals started new development projects, and apartment construction remains hot in the San Francisco and Los Angeles regions. Read the whole story, at LATimes.com.
National Real Estate Investor: Independent living properties lead the seniors housing sector
Independent living is a segment of growth in the senior housing sector, and this housing boom is partially explained by limited supply and strong demand. But while there is new development in both independent living and assisted living facilities, the assisted living sector is expected to grow much faster over the next few years due to an uptick of new construction. While some experts are noting concern in too much developer interest, oversupply won’t become a problem until 2017. Find out more about the senior housing sector at NREIOnline.com.
CoStar: Can strong fundamentals help REITs overcome investors’ sensitivity to interest rates?
Though the Federal Reserve hasn’t elevated interest rates, the thought of higher rates has some REIT investors on edge, even after a great year. Short-term interest rates remain close to zero, which allows REITs to cheaply borrow money, but a rate hike will force REITs to find new ways to generate growth. Still, the U.S. commercial real estate sector is strong, and will likely provide good returns even as rates increase. To learn about the concerns of some investors, visit CoStar.com.
GlobeSt.com: Luxury condo developer putting soccer field on roof
One Miami developer is hoping to score a goal with a new development concept that would add an elevated sports complex to the Paramount Miami Worldcenter. The design includes creating America’s first outdoor soccer pitch in a high-rise residential development, located on the ninth floor of the 60-story tower. As condo prices in Miami continue to climb and demand remains strong, developers are realizing new ways to lure in buyers. Read more about this trend at GlobeSt.com.