The Affordable Care Act drives CRE growth, landlords cut operating expenses, and REITs could roll momentum into 2014
Sep 9, 2013
Here are the news stories you might have missed last week:
Pensions & Investments: Health-care act could be a good Rx for commercial real estate
While the health care industry hunkers down for the imminent implementation of the Affordable Care Act (ACA), the health care real estate sector is gearing up for significant industry growth. When the law takes effect next year, 30 to 50 million more Americans will gain access to healthcare services, generating greater demand for office space, medical buildings, and some senior housing and care facilities. Read more about what the ACA means for the commercial real estate industry at PIOnline.com.
REIT.com: Falling rental income drives office expenses down
According to a report released by the Building Owners and Managers Association (BOMA), dwindling rental incomes have spurred some building owners and managers to cut their operating expenses. From 2011 to 2012, average rental income for office buildings dropped 2.9%, leading to a 3.9% decrease in overall operating costs. To learn how building owners cut costs, visit REIT.com.
HousingWire: REITs gain traction
North American REITs and real estate operating companies are projected to maintain stable occupancy rates and rental rate gains through 2014, in spite of slower-than-expected economic recovery and rising interest rates, predicts a new report by Standard & Poor’s Rating Service. The positive reports stem from REITs’ continued access to capital markets and the continued recovery of the housing industry. For more information, visit HousingWire.com.
San Jose Mercury News: Google leases large building in Mountain View for an expansion
Google signed a new lease on a 168,000-square-foot office building slated for construction in Mountain View, Calif.’s shoreline district. Once completed, the company’s newest space will accommodate between 700 and 900 workers. This development adds to Google’s recent property acquisitions, which total 3 million square feet of office space, enough room for up to 15,000 employees. To read more about Google’s recent real estate moves, visit MercuryNews.com.
Author: Raymond T. Cirz