What the government shutdown means for landlords and why aging office buildings need a facelift
Oct 11, 2013
Here are the news stories you might have missed this week:
GlobeSt.com: GSA to landlords: You’ll get paid … eventually
While Democrats and Republicans fight out their budgetary differences, federal landlords battle greater worries — will they get paid? The General Services Administration attempted to quell fears, claiming landlords will receive payment, but not until the shutdown’s over. Unless the government defaults on its debt, in which case the GSA might fall back on a deficiency of funds clause. To hear more about what the shutdown means for federal landlords, click over to GlobeSt.com.
The Wall Street Journal: First glances at September new-home sales spark worries
While the numbers are still trickling in, first reports don’t look good for September’s new-home sales, and some industry experts have slimmed down sales projections for the rest of the year. In initial findings, sales remain flat compared to a year ago. Experts link the shrinking sales numbers to high mortgage rates, the government shutdown, the federal debt-ceiling debate, and the predicted tapering of federal bond buying. To learn more, read the article at WSJ.com.
The New York Times: In a healthy apartment market, pockets of worry
Apartment demand is soaring throughout the U.S. and developers are answering the call by building 260,000 new units this year. But it’s not all good news — some developers fear overbuilding, and returns from real estate investment trusts that own apartments have shrunk over the past two years. Still, the average nationwide vacancy rate dropped 10 basis points in the third quarter of 2013, reassuring some. To learn more about America’s shift from owning to renting and what that means for developers, visit NYTimes.com.
CoStar: How will older office buildings compete in the new workplace?
While office buildings have provided investors a steady cash flow over the past few decades, buildings built before 1980 might struggle to remain relevant as the definition of office space changes. As office buildings in leading markets increase in age and carry relatively inefficient legacy infrastructure, they pose a challenge for investors interested in renovating this space to meet modern standards. To learn more about what the changing trends in business mean for aging office buildings, visit CoStar.com