Solar panels are now affordable for multifamily owners, and why warehouse office space is in high demand
Sep 18, 2015
Here are the news stories you might have missed this week:
The Wall Street Journal: Tech hot spots fetch high prices
Traditional, Class A office space has become a suit and tie – a representation of everything startups and tech companies are not. Instead, creative office space is where tech firms want to be, and are increasingly in demand. That’s causing developers and investors to purchase and repurpose warehouses into new office space. From San Francisco to New York, major players and startups in the technology sector are setting up shop in these converted warehouses, and the pent up demand is causing rents to soar. Buying one of these “creative” office buildings is costly, as record sales have been completed in recent months. Learn what’s happening in these new office spaces at WSJ.com.
National Real Estate Investor: Solar power is within reach for multifamily owners, developers
Thinking about putting solar panels on an apartment building? Now that’s a bright idea. The total cost of installing solar panels on a multifamily building continues to drop, and different incentive programs and rebates make it cheaper than ever to install the technology. In some cases, total costs are low enough that installation of the panels proves to be a good investment even without incentives. But there is still some hesitation on the part of some apartment building owners, as they see recourse debt as a poor financial decision. Some apartment owners are installing the panels as part of new construction or redevelopment, and rolling the cost into the total construction loan. Read about the advantages of solar, but also the challenges, at NREIOnline.com.
Real Estate Journals: Are developers focusing too much on luxury end of multifamily development?
The multifamily sector in Midwest cities is doing great, as cities like Chicago, Kansas City, and Minneapolis are experiencing low vacancies rates. But, there is some concern that developers are building too many luxury apartments and not enough market-rate units. In the short term, it might not be a problem, as these luxury units with rooftop decks and many amenities are being absorbed quickly. However, some experts believe this imbalance could come back to hurt cities when the supply of market-rate units is well below future demand. Visit REJournals.com.com to find out more.
The New York Times: Looking for conventions, cities add hotel rooms
If cities build hotel rooms, the conventions will come. At least, that’s what cities through the U.S. are hoping for, and plans for convention hotels are being drawn up across the country. There’s good reason for it too, as hotel occupancy nationwide is above 70 percent, and RevPAR hit $93 in July. Staying competitive is what cities are aiming for, and the new convention hotel developments will give event planners a simple choice of where to stay – downtown, in the convention hotel. See what kind of hotel development cities are looking for at NYTimes.com.
Posted by: Raymond T. Cirz