Survey data from RERC suggests that capital for the commercial real estate industry is not yet back to pre-pandemic levels, although improvement was recorded in the first quarter, writes Peter Muoio. "Availability is near the levels we saw in the early 2010s, when the economy was also recovering from a severe shock," Muoio writes.
In response to the remote work trends brought about by the pandemic, apartment owners hurried to provide co-working spaces in their buildings. Now, developers are betting that remote work will persist and are offering conference rooms and private offices that can be reserved.
Data centers are dealing with labor challenges, with a survey from the Uptime Institute finding that half of data center operators found it difficult to place people in open positions last year. One factor driving the trend is the percentage of workers who are reaching retirement age, notes Bryon Price of JLL.
The fastest growing segments of the US housing market will continue to be multifamily properties and single-family rental homes, according to DBRS Morningstar. Households priced out of the housing market and high amounts of debt are among the factors driving the trend, it said.
BlackRock is only allowing vaccinated employees to return to its offices, starting in July. BlackRock is asking employees to report their vaccination status by the end of this month and will offer unvaccinated employees an update later this summer.
W.P. Carey has announced three investments worth $137 million that took the form of sale-leaseback transactions and closed within the last month. The deals involve industrial facilities in New York and Alabama, as well as the Chicago and Toronto markets.
Bank of America expects vaccinated workers to be back in the office after Labor Day, and 70,000 workers have already voluntarily disclosed their vaccination status. "[O]ur view is all the vaccinated teammates will be back and we'll be able to operate fairly normally, and we'll then start to make provisions for the other teammates as we move through the fall," says CEO Brian Moynihan.
REITs continue to post solid gains for 2021, with the FTSE Nareit All Equity REIT index delivering total returns of 0.82% in May and 18.08% so far this year. The residential sector was the best performing at 3.51%, followed by office, notes Nareit Executive Vice President and Economist John Worth. "Across the sectors what I heard in these company presentations [at REITWeek] was that almost irrespective of sector, we are seeing things opening up," he adds.
Equinix has expanded its global presence under CEO Charles Meyers, and it now has data centers in all but one of the 20 largest markets in the world. Meyers thinks global technological change is still in its early stages, leaving plenty of room for growth. "I often refer to Equinix as the engine room for the digital economy," Meyers says.
Allianz Capital Partners is acquiring a 10% stake in American Tower's European business for €530 million ($632.2 million). "Allianz' global infrastructure experience, extensive European investment history and investment philosophy are an excellent match for our value creation objectives in Europe, and we look forward to growing the business together while strengthening mobile broadband access in our served markets," says American Tower CEO and president Tom Bartlett.
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