Federal Realty Investment Trust will begin construction on a speculative office building in the Boston area. The 100,000-square-foot office will be situated in its Assembly Row development in Somerville. There will be 30,000 square feet of retail space in the building.
Fundamentals in commercial real estate are solid, accounting in part for the return of commercial mortgage-backed securities, according to panelists at the DLA Piper 11th Global Real Estate Summit. Right now, CMBS players are financing deals in the top markets, but they are expected to move into the top 30 markets. "U.S. commercial real estate markets are viewed as stable havens; real estate cap rates will also remain steady," said Jay Epstien, DLA Piper U.S. Real Estate Practice chairman.
Penn National Gaming will call the REIT that it proposes to form from its operating and real property assets Gaming and Leisure Properties. Last fall, the company announced plans to separate assets into two publicly traded companies. Gaming and Leisure Properties own 19 casino facilities and leases 17 back to the operating company.