Jones Lang LaSalle reports that US hotel transactions have reached $29.7 billion year-to-date for 2018, a year-over-year increase of more than 25%. Investors such as private equity and REITs are behind many of these deals, which are being driven by the sector's strong fundamentals.
The self-storage asset class is unlikely to experience a recession even though street-rate rents are dropping as new supply is built, according to Brian Somoza, managing director at JLL Capital Markets. "The sector has been recession-resistant because the demand for self-storage space is based on life events, such as marriage and divorce, renovating and relocating," he said.
Duke Realty has submitted a proposal to Rossford, Ohio, officials to develop a 2.8 million-square-foot industrial building. Marc Wulfraat, president of MWPVL International, speculates that the four-story facility is meant for Amazon.
Chatham Lodging Trust's target market strategy is to focus on luxury extended-stay hotels in strong, quickly growing markets, said Jeffrey Fisher, the REIT's chairman, president and CEO. "We think the niche ... with our favorite brand, Residence Inn by Marriott, provides great opportunity for growth," he said.
After a period in which there was a great deal of development in the senior housing real estate sector, now the opportunities will lie in occupancy increases, said Wendy Simpson, chairman, president and CEO of LTC Properties. Another trend in this sector next year could be more optionality in properties, she said, noting that "the baby boomers are bringing a desire to continue to manage their own lives in a different setting."
The White House plans to nominate Mark Calabria as director of the Federal Housing Finance Agency, sources say. Calabria, a critic of Fannie Mae and Freddie Mac, would replace Mel Watt, whose term will end in January.
Increasingly, landlords are converting empty retail center space into apartments, which turns the typical 12-hour retail environment into an 18-hour one. Apartments, along with restaurants, entertainment centers and fitness clubs, are helping retail centers fill space and also helping them e-commerce-proof properties.
The Palisades Village in Pacific Palisades, Calif., opened in September and has broken retail records, says developer Rick Caruso. The property, which boasts hand-picked tenants such as shops from Rachel Zoe and jeweler Jennifer Meyer, has numerous tenants with long-term leases.
The first portion of the Solis Town Center in Suwanee, Ga., has opened. The downtown location near long-established Town Center features restaurants and retailers.
Gift cards have topped the most popular holiday gift list for a dozen years, according to NRF, and retailers are finding ways to make their cards stand out with sparkly new designs. Best Buy is eschewing plastic for paper that can be recycled, and Target has redesigned its gift card displays for the holidays.