Companies in commercial real estate are concerned about the impact on tenant behavior that could result from a recently proposed lease-accounting standard. Fitch Ratings says the proposal could increase short-term leases. The Real Estate Roundtable and 13 members of Congress have written to Financial Accounting Standards Board Chairwoman Leslie Seidman asking for the release of a cost-benefit analysis to ensure there are no "unintended consequences" for property markets.
Financials for health care REITs specializing in medical office buildings are booming, with yields that are twice as high as other property types. Also, large portfolio sales volume is increasing in this asset class. "It's been a record year and a half for medical office," says Mindy Berman, managing director of JLL’s Healthcare Capital Markets.
Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., hope to lead a bipartisan group of legislators in introducing legislation in the next few weeks to wind down Fannie Mae and Freddie Mac. "What Senators Corker and Warner are doing is laudable. They are wading into a highly partisan fight and trying to put forward an initial approach," said Jaret Seiberg of Guggenheim Securities.
Malkin Holdings has reached the majority of votes, at 80%, it needs to launch a public share offering of the Empire State Building. The iconic New York building will be the centerpiece of Malkin Holdings' planned $5.2 billion REIT. It will also include 18 other office buildings in Manhattan.