Rent-to-buy booming, rising demand for office leasing, and downtown Buffalo makes a comeback
Aug 2, 2013
Here are the news stories you may have missed this week:
HousingWire: Morgan Stanley predicts buy-to-rent boom
The buy-to-rent (BTR) industry will continue to grow at a steady pace, according to a research report from Morgan Stanley, jumping from approximately $17 billion today to more than $100 billion over the next several years. That growth will likely be driven by the declining demand for homeownership and the resulting hike in rents, which will generate large returns on investment for institutional investors. For more information about the current hot spots for buy-to-rent investments, and how investors can get involved in the industry, jump to the full article at HousingWire.com.
Wall Street Journal: Saks deal is about land as much as luxury
Richard Baker, CEO of Hudson’s Bay Inc., made headlines with his recent $2.4 billion takeover of luxury retailer Saks Inc., a purchase that gives Hudson’s Bay enough combined real estate assets to form a new real-estate investment trust (REIT). The REIT would own the acquired property, including Saks Fifth Avenue, and rent it back to retail chains. For a more in-depth look at the takeover transaction, read the full article at WSJ.com.
CoStar.com: REIT landlords see increasing demand for 2014 office leasing deals
REIT landlords are reporting an increase in demand for 2014 office leasing deals in both large and small tenants. CoStar Group adds further good news, reporting that the overall U.S. office vacancy rate fell 0.6% year over year. Learn more about what factors have REIT executives optimistic and what challenges remain on CoStar.com.
The New York Times: Once just a punch line, Buffalo fights back
Over the past year, more than $1.7 billion in real estate development projects have been announced or are under construction in Buffalo, N.Y. The city’s current period of economic growth is the result of a decade of medical real estate development. The city built a 120-acre medical research and education campus, which has transformed the under-performing downtown region by adding jobs, spurring home prices in nearby neighborhoods, and encouraging hotel, retail, and luxury residential construction. Find out more about Buffalo’s revival and redevelopment at NYTimes.com.