With 26.1 million square feet under management, Brookfield Asset Management will be the largest owner of commercial properties in New York City when its $6.8 billion acquisition of Forest City Realty Trust closes this week, says Ric Clark, chairman of Brookfield Property Group. RXR Realty, with 24.6 million square feet under management, will be the next largest, followed by SL Green Realty, Vornado Realty Trust and Tishman Speyer.
Department stores total more than 350 million square feet of mall space across the US, according to Green Street Advisors. This is worrisome to retail landlords as department stores fall out of favor with consumers and more of these retailers re-evaluate their real estate footprint.
Multifamily fundamentals remain solid because demographics and the economy will continue to support demand as supply gradually decreases, said Thomas Toomey, chairman, president and CEO of UDR. The sector is insulated from global volatility, he said, adding, "We're in for a good steady performance."
Seritage Growth Properties ended the third quarter with 70% of its income on a signed-lease basis coming from tenants other than Sears, President and CEO Benjamin Schall said. He added that the company would have "more than sufficient" income in the next 12 to 24 months from its redevelopment activity should Seritage's master lease with Sears end.
The US trade deficit increased 1.7% to $55.5 billion in October from a revised $54.6 billion in September. The gap is the highest in a decade, with imports of goods and services having risen 0.2% to $266.5 billion while exports stayed largely flat.
Sport Clips, Hollywood Feed and Noire the Nail Bar are among the tenants that will be at the newly opened Leesville Market Place in Raleigh, N.C., next year. A Publix grocery store anchors the 62,880-square-foot retail center, which was developed by Halpern Enterprises.
The Mortgage Bankers Association forecasts total commercial/multifamily originations of $541 billion for 2019, a 2% increase over this year's activity. There was a 7% year-over-year drop in commercial/multifamily lending activity in the third quarter of 2018, but the association expects that 2018 commercial and multifamily mortgage originations will be at the same level as in 2017, which had a record volume of $530 billion.
Welltower has made $1 billion in recent acquisitions that it sourced off-market, via 11 transactions in the senior housing and medical office asset classes. Separately, the REIT received a $300 million investment in its common stock from an affiliate of Qatar Investment Authority.
REITs' exposure to interest rates, in terms of leverage and net interest expense, declined in the third quarter to an all-time low, according to the Nareit T-Tracker. Economist Calvin Schnure discusses the measures REITs have taken to protect their balance sheets, including raising significant amounts of common equity and lengthening maturities of their debt.