Skyscraper market on high, hotel REIT debt looms, and placemaking reboots downtown Detroit
Jun 14, 2013
Here are the news stories you may have missed this week:
The Wall Street Journal: Skyscraper prices head north
The skyscraper market is booming, with at least three deals this year topping $1 billion each. To put this in perspective, only one similar sale occurred between the fall of 2008 and December 2012. This year’s deals have been isolated to Manhattan, where the market is driven by low interest rates and buyers seeking safe investments that offer some income from rents. Check out The Wall Street Journal for more on the deals.
The New York Times: Awaiting immigration reform
Proposed immigration legislation would allow undocumented immigrants to apply for citizenship, and it could have a dramatic impact on the U.S. housing market in the next decade. According to the National Association of Hispanic Real Estate Professionals (NAHREP), passage of immigration reform could lead to $500 billion in new mortgages. If the law is passed, NAHREP expects that about half of the estimated 11.1 million immigrants in the U.S. would pursue citizenship, resulting in approximately 3 million new home buyers. Get all the details at The New York Times.
Investor’s Business Daily: What’s a big deal in commercial real estate rebound?
While the commercial real estate market is improving and economic growth seems to be giving developers and lenders more confidence, experts say that there is still more progress to be made to sustain a long-term commercial real estate recovery. Desired improvements include more small business loans, improved vacancy rates, and more transaction activity in smaller deals (less than $2 million). Head over to Investor’s Business Daily for more on how commercial real estate is faring.
GlobeSt.com: $16B in hotel REIT debt coming due
A staggering $16 billion, or 52% of all debt held by hotel REITs, is due between 2014 and 2016, according to SNL Research. Strategic Hotels & Resorts Inc., LaSalle Hotel Properties, and Sotherly Hotels Inc. in particular carry a large percentage of the debt due. Check out the full report at GlobeSt.com
Forbes: Placemaking your business
Detroit’s downtown may soon get a facelift due to the efforts of Dan Gilbert, founder of Quicken Loans, and Project for Public Spaces, a firm specializing in the art of “placemaking.” Placemaking transforms public areas such as sidewalks and streets into functional spaces for outdoor dining or shopping, for example. The result extends businesses beyond the traditional barrier of the storefront, and engages the community in its urban spaces. Read the full story at Forbes.