Treasury Secretary Janet Yellen says forthcoming steps to be taken by the Biden administration and Federal Reserve will bring the currently high inflation rate under control in 2022. "Inflation rose by more than most economists, including me, expected and of course it's our responsibility with the Fed to address that," Yellen said.
Starwood Capital Group and Blackstone have formed an agreement to acquire 111 extended-stay hotel properties from Brookfield Asset Management for about $1.5 billion, according to sources. The properties are part of the WoodSpring Suites brand, and the deal could reportedly close as soon as February.
The pandemic has spurred significant growth in the percentage of sales conducted through e-commerce channels, and the trend is likely to continue, says Prologis CEO Hamid Moghadam. Moghadam also discusses the difficulty that many businesses are having in finding labor and how this is driving interest in technology.
Supply chain issues are creating challenges for commercial construction projects and, in some cases, contributing to delays. "It may be into next year to see the ability to do non-residential construction unhindered," notes Nareit's Calvin Schnure.
Brixmor Property Group has acquired a retail center in Brea, Calif., that is co-anchored by a Ralphs and Rite Aid. The property, which sits on 12.5 acres, sold for $85.7 million and was 98% leased at the time.
Office employees will return to in-person work eventually, and companies are showing increased interest in collaborative spaces and meeting rooms, according to Boston Properties CFO Michael LaBelle, who discussed this and other trends in the marketplace. Other observations centered on New York City's positive outlook and the REIT's continued investment in the life sciences sector.
Elevated inflation can be a troubling indicator, but it's important to note that corporate profit margins and productivity appear to be stronger than they were during the bout of high inflation in the 1970s, writes Nareit's Calvin Schnure. In addition, analysis shows that REITs tend to do well during periods of moderate and high inflation when compared to the broader market. "With the economy's underlying vital signs healthy, the outlook for 2022 for the economy and REITs remains positive," Schnure writes.
DigitalBridge Group's second flagship fund received $8.3 billion in commitments before closing, exceeding its initial goal of $6 billion. DigitalBridge Partners II LP has made investments in nine portfolio companies in areas including towers, data centers and mobile network operators.
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