iStar has spun off some of its ground leases into another REIT called Safety, Income and Growth. It is expected to raise $250 million from an initial public offering and private placement.
Major investors are pressuring hedge funds to incorporate sustainable investment strategies. "When investors like us are looking at a hedge fund's investment, we look at it from a perspective of what we are doing in responsible investing more broadly," said Marta Jankovic of APG Asset Management.
Campgrounds have become an attractive alternative investment for REITs, according to Jim Westover, vice president of operations at Jellystone Park, who says a growing number have been investing in its operations. Equity LifeStyle Properties focuses on the related sector of mobile home and RV parks, and it's performing well.
The US vacancy rate for apartments rose to 4.4% in the second quarter, from 4.3% in the previous quarter, while asking rent rose 1.3% and effective rent increased by 1.1%, according to Reis. "Total inventory is expected to increase significantly in 2017, however, construction in the second quarter was lower than expected in a quarter that tends to see the highest activity," the Reis report said.
TIER REIT has acquired a 319,000-square-foot office building in Plano, Texas, for $123.3 million. It also sold its Louisville, Ky., office portfolio for $71.5 million.
Demand for apartments in the Dallas area is far outpacing the supply, with the metro area expected to have to almost double the pace of construction to meet estimated demand, according to the National Multifamily Housing Council and the National Apartment Association. Between 2000 and 2015, the Dallas area built 144,000 units.
The average monthly rent for a workstation in flexible office space in New York City was $1,110 in the 12 months through February, according to The Instant Group. That makes New York City the priciest large city worldwide to rent a desk.
Three must-have features for student housing today are technology capabilities; areas for group and individual study and related tasks; and health and wellness facilities, says American Campus Communities CEO Bill Bayless. "You're seeing an immersion of the academic experience coming together with the real estate to where it's really creating these living-learning communities," he says.
The increase in US home prices slowed somewhat in April, with the average price in 20 metropolitan areas rising 5.7% compared to a year ago, according to the S&P CoreLogic Case-Shiller composite index. Experts say prices have nowhere to go but up as long as inventory remains scarce.
So far, the Senate is short of the votes necessary to pass its healthcare legislation, which is worrisome to health care REITs. This bill is seen as being friendlier to the industry than the version passed in the House of Representatives.
Rising stock prices and dropping bond yields suggest further tightening of monetary policy is in order, Federal Reserve Bank of New York President William Dudley said. Treasury and mortgage-backed bond markets have been unaffected by news of the Fed's plan to shrink its balance sheet, evidence that the central bank's communications have "been effective in fostering an orderly adjustment in expectations," he said.
Brought to you by NAREIT, REIT.com is your source for the latest real estate investment data & analysis, news, policy developments and industry information.
Spotlight Focus on sources for news and industry updates:
Is Your NAREIT Profile Current? Login at REIT.com to find out. Don’t have a NAREIT profile? Create an account now. Having a NAREIT profile keeps you connected to NAREIT news and information.
Criticism is so often nothing more than the eye garrulously denouncing the shape of the peephole that gives access to hidden treasure.