Host Hotels & Resorts placed three Hyatt hotels -- Andaz Maui at Wailea in Hawaii, the Grand Hyatt San Francisco and the Hyatt Regency Coconut Point in Bonita Springs, Fla. -- under contract to buy for $1 billion. The REIT sold the Key Bridge Marriott in the Washington, D.C., region for $190 million and has a contract to sell the W New York for $190 million.
Institutional investors are doubling down on their search for greater yield as commercial real estate deals become scarcer, interest rates rise and the opportunity for property appreciation lessens. "What is occurring now more so than in the past is that every institutional investor is looking for outperformance," says Brian McAuliffe of CBRE Capital Markets.
REIT executives signal they are ready for the changing economic environment, with 87% confident in their business prospects, according to the BDO Global REIT Report. Nearly half, or 46%, of global REIT executives surveyed predict that growth will continue over the next two years, says Stuart Eisenberg, national leader of BDO USA's real estate practice.
Slate Acquisitions reportedly is already selling some of the $1.14 billion in assets that it will acquire from Cominar REIT when the deal closes in March. Sources say it is about to sell a Toronto office tower and has put two retail centers on the market, all with the goal of avoiding land property transfer taxes.
Bixby Land Co. and AXA Investment Managers have formed a joint venture to make up to $400 million in industrial property acquisitions. The JV will target assets in the $10 million to $40 million range, which is similar to Bixby's acquisition criteria.
Internal and external benchmarking is key if the real estate industry is to meet its goal of a 50% emissions reduction by 2030, according to Micah Brill, vice president at ULI Greenprint. Collaboration with tenants is also important, because they "really are responsible for maybe more than 50% of energy use at any given property," he said.
Retail's future lies in a link between both digital and physical marketplaces, with success coming to brands that learn how to interplay between both, says Robert Mason, Skilken|Gold's chief financial officer. Investors and developers will need to use resources on "go" projects, not "maybe" projects, while also avoiding emotional attachment to some decisions.
Virtual reality attractions continue to make their way into malls and family entertainment centers thanks to their level of immersion and interactivity. Operator The VOID recently opened "Star Wars"-themed free-roaming attractions in London, England, and at Walt Disney Co. areas in Florida and California, and it is slated to open new locations across the globe, while Dreamscape Immersive's pop-up attraction in Los Angeles was met with strong demand.
CSW Development is moving forward with plans for a 250,000-square-foot mixed-use structure called Wolf Crossing in Georgetown, Texas. The project will include a hotel, a grocery store and restaurants.
About 57% of Costco members are also Amazon Prime members, compared to 13% five years ago, according to a survey from MoffettNathanson. "Americans appear to be buying into the concept of owning two 'shopping' memberships as the value proposition is fundamentally different," the firm wrote in a research note.
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