The “B” word floating around New York City hotels, and one Atlanta project is turning heads
Jun 15, 2015
Here are the news stories you might have missed last week:
Commercial Observer: A glut of NYC hotels is making some hospitality experts throw around the ‘B’ word
If you’re visiting New York City, you shouldn’t have any problem booking a hotel room: More than 8 million rooms have been built in the Big Apple since 2009. But this trend is causing worry among industry experts. As more supply comes online, demand is weakening, and by 2016, the hotel industry might be in — dare we say it — a bubble. A burst could shake low-performing hotels and encourage consolidation. Still, RevPAR is up, and New York City remains a very attractive destination for international tourists, even with a strong U.S. dollar. Discover what’s happening with the Big Apple’s hotel sector at CommercialObserver.com.
Bisnow: Is the definition of a retail anchor changing?
The powerful thing about anchor tenants is that they attract plenty of foot traffic, but they can also weigh a building down if they fail. The discussion around anchor tenants is changing in some circles, and the combination of small vendors and flexible community space is becoming a more attractive option for some property owners. Though gourmet foods stores, movie theaters, upscale retailers, and restaurants still hold promise as anchors for years to come, traditional anchor stores – like grocers or departments stores – might be making an exit. To see more about this anchor tenant trend, visit Bisnow.com.
GlobeSt.com: Could this project transform the industry?
An Atlanta mixed-use destination is turning heads, and causing others to rethink regional redevelopment. North American Properties rolled retail, office space, and multifamily development into one big project, dubbed Avalon. The 2.3-million-square-foot, mixed-use space, which opened last year, is a destination that continues to attract new businesses, residents, and visitors. Avalon is so popular — evidenced by high rent and occupancy rates — that it’s causing some experts to think differently in the CRE industry. Experts are acknowledging that this concept has succeeded in creating an experience, not just a group of buildings, and it’s translated into great returns for the developer. Learn more about this Atlanta project at GlobeSt.com.
The Daily Beast: Mall’s washed up? Not quite yet
Journalists might be a bit down on malls, but everyone else seems to like these giant palaces of commerce. While it’s true that between 10 and 15 percent of U.S. malls will likely go out of business in the next decade, many malls are currently doing well. Mall vacancy rates flattened out last year, and they continue to serve as a place for those seeking a social community experience. Most demographics — even millennials — still prefer shopping in stores, as opposed to online, and populous urban centers have become hotbeds for in-person shopping. Even older malls are being converted into spaces that better serve local populations. To hear more about this trend with modern malls, visit TheDailyBeast.com.
Posted by: Raymond T. Cirz