REITs are slow to raise capital in 2014, and property bubbles raise concerns from US to China
Apr 18, 2014
Here are the news stories you might have missed this week:
Commercial Observer: Bursting the bubble: Is NYC real estate heading for a crash?
Are we experiencing another real estate bubble? The jury’s still out. While the continual improvement of underlying fundamentals, such as rising occupancy rates and increasing demand for investment properties, dispute the idea, the disconnect between those improvements and property values suggest we’re in a bubble state. To read both sides of the argument, visit CommercialObserver.com.
FoxNews.com: Colo. eminent domain case settled with $115,000 sale
A high-profile eminent domain case came to a close this week in Breckenridge, Colo., where a cabin and 10 acres of land sold for just $115,000. Landowners had to drive utility vehicles down an old mining road to reach the secluded cabin. Since the cabin sat among biologically sensitive lands, these vehicles caused a potential threat to protected earth, and triggered the local government to condemn the cabin and acquire the land through eminent domain. For more details about this case, visit FoxNews.com.
CNNMoney: Fears grow over China property flameout
Fears of a Chinese property bubble continue to escalate, as rising home prices and overrun property construction threaten the economy. Though worried murmurs of a property bubble in China aren’t new, recent reports of developers unloading properties at big discounts are fueling the concern. Keep reading at Money.CNN.com to learn more.
GlobeSt.com: US REITs raise (only) $13b so far this year
REITs have raised considerably less capital in 2014 than in the same period in 2013, but experts suggest the numbers aren’t all doom and gloom. The slow start to the year is likely due to the low interest rate environment and the increased number of senior debt issuances. Furthermore, flat and discounted net asset values (NAVs) have led many U.S. REITs to hold out on raising equity until trading returns to a premium. Click over to GlobeSt.com to learn more.