Amazon's deal to acquire Whole Foods Market could bring new challenges for Target, which recently launched a three-year revitalization and store redesign plan with food playing a key role. "Whatever competitive pressures were out there before today are now accentuated with this move," Morgan Stanley Analyst Simeon Gutman said.
Studies released by the National Apartment Association and the Joint Center for Housing Studies at Harvard University have come to similar conclusions about housing and multifamily demand. Rental-apartment demand can be expected to remain high as household formation continues to be robust and affordable single-family homes remain scarce.
Mitsubishi Estate has established a joint venture fund with a unit of Hong Kong investment bank CLSA, with plans to invest $1.79 billion in office buildings and other commercial properties in Asia and Australia over the next four years. This is the first time a major Japanese real estate developer has created an Asian investment fund.
Summit Hotel Properties has closed on its previously announced $163 million acquisition of a five-asset portfolio from Xenia Hotels & Resort. Summit plans to invest between $13 million and $16 million in capital improvements on the 812-key portfolio, which is located in Fort Worth, Texas; Kansas City, Mo.; Pittsburgh; and Baltimore.
Senior housing owners and operators are keeping a wary eye on rising labor costs, which are growing faster in the sector than the national average, writes
Beth Burnham Mace, chief economist at the National Investment Center for the Seniors Housing & Care Industry. "In order to grow NOI, operators will need to boost their operational efficiency and staff productivity, likely through technology, training and mentoring," she writes.
New single-family home sales rose by 2.9% in May to a seasonally adjusted rate of 610,000 units, and were up 8.9% on a year-on-year basis, according to the Commerce Department. Economists polled by Reuters had predicted that new-home sales in May would increase month-over-month by 5.4%.
Apple Hospitality REIT is exploring transactions that would be accretive for its shareholders, says CEO Justin Knight. "We're beginning to see renewed interest on the part of sellers and an increased number of buyers," he says.
Michael Comras, president and CEO of The Comras Co., believes the industry is going through a structural change from a supply-driven economy to a demand-driven business. As a result, retail developers should target higher-quality properties in great locations to bring in the best tenants, which in turn will grant access to financing.
The Mall of America paid $30.1 million in taxes in 2016, more than any other mall in America, per Commercial Cafe. The mall, which is also the nation's largest, has 2.94 million square feet of retail space and 520 stores.
Northland Square shopping center in Cedar Rapids, Iowa, has been sold to a private investment firm in a deal brokered by the Mid-America Real Estate Corp. The 187,068-square-foot shopping complex is anchored by TJ Maxx and Kohl's.
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