Why California developers are optimistic about commercial real estate, “Flip This House” star snaps up Houston office building, and Salt Lake City mall makes a splash
Jul 12, 2013
Here are the news stories you may have missed this week:
LA Times: Commercial real estate development surge expected in California
California can expect steady growth in commercial real estate over the next three years, according to a newly released California Commercial Real Estate Survey report by Allen Matkins and UCLA Anderson Forecast. San Francisco is expected to benefit the most, with around half of the Bay Area developers surveyed planning to start building before year’s end. Even previously struggling sectors like industrial manufacturing and warehouses are expected to improve, though not as drastically as multifamily real estate. For more on the expected growth, visit LATimes.com.
New York Times: Mormon-backed mall breathes life into Salt Lake City
The year-old City Creek Center Mall, funded by hundreds of millions of dollars from the Church of Jesus Christ of Latter-day Saints, has energized Salt Lake City’s economy. The mixed-use mall, which is enjoying a 98 percent occupancy rate, has created 2,000 jobs, attracted more than 16 million visitors to the downtown area, and last year helped grow downtown retail sales by 36%. Check out the New York Times article for more on this project’s impact.
GlobeSt.com: North American real estate continues to rise
While the industrial market has recently been a perennial underperformer, a mid-year report from LaSalle Investment Management shows that this asset class has been one of the most impressive sectors in the first half of 2013, a highlight amidst across-the-board growth in U.S., Mexican, and Canadian commercial real estate. Low interest rates, improved debt availability, and falling borrowing rates are driving the growth through stronger debt availability, liquidity, and higher pricing. To see more on the report and recommendations for industrial investors, visit GlobeSt.com.
Houston Chronicle: A&E “Flip This House” star turns to Houston commercial real estate
Armando Montelongo of “Flip This House” is now trying his hand at commercial real estate. Montelongo’s company recently purchased Northchase Place, a 75,000-square-foot office building in Houston, for $2 million. For more on the purchase, visit The Houston Chronicle online.
Author: Raymond T. Cirz