This week in CRE: Why a big business park in the smallest state is so successful and more
Mar 18, 2016
Here are the news stories you might have missed this week:
The New York Times: Quonset makes a new name for itself in business
Big things are happening in little Rhode Island: Quonset Business Park, which sprawls over the decommissioned Navy base, hit 10,000 employees and is thriving. The park has its own port, airport, and rail line, and 2,000 companies have moved in since the park opened for business more than three decades ago. Rhode Island officials say the park is vital to the state (there isn’t much developable land in Rhode Island) and could be used as a model for other areas of the country. Since 1985, more than $500 million of private investment and $600 million in public money has flowed to the Quonset Business Park. Visit NYTimes.com to read more about this Rhode Island gem.
CoStar: China’s Anbang Insurance surprises Starwood Hotels with unsolicited $12.6 billion takeover bid
Another potential shakeup in the hotel space was made public this week: a group of overseas investors, led by China-based Anbang Insurance Group, put in a $12.6 billion bid to buy Starwood Hotels & Resorts Worldwide’s 1,300 hotel portfolio. The hotel chain is in the middle of discussions with Marriott, who put in their own bid to buy Starwood last year, and a takeover vote is scheduled for the end of March. Regardless of which firm buys Starwood, the implications are huge, as Starwood operates in 100 countries and manages 1,300 upscale rooms. Find out more about Anbang Insurance’s bid at CoStar.com.
Crain’s New York: To lure tech tenants, landlords offer options to expand
One way New York City landlords are holding on to tenants is by offering the moon – not really, but they’re offering tenants the ability to expand. In many cases, firms looking for office space are still growing and don’t want to rent too much or commit long term. Landlords have sensed that and are responding by offering the ability to expand to additional space in the future. That’s important in a city known for its office space crunch. Still, some landlords are at a crossroads, because what if another major tenant wants to move in? Flip to CrainsNewYork.com to read how landlords are reacting.
Bloomberg: Lenders are getting choosier when it comes to risky real estate deals
Lenders, weary of shaky financial markets and economy growth as well as rising loan costs, are more careful when funding risky real estate deals. While New York City and Miami are still hot markets, others are stymied with overbuilding and slow growth that is weighing heavily on landlords. Plus, everyone is watching the Federal Reserve’s plan for interest rates. In some cases, Wall Street is shying away from underwriting loans and packaging them into securities, which may result in more private lending in the future. Go to Bloomberg.com to read more.
Posted by: Michael Welch