The recent volatility in the stock market could have an effect on commercial real estate investment, according to Mark Dotzour, a real estate economist. The volatility causes investors to evaluate all opportunities to determine if CRE is still the best option for them, Dotzour says.
Office, retail and multifamily REITs are poised to benefit from Amazon's decision to locate its second and third headquarters in New York and Northern Virginia. These companies include AvalonBay Communities, Camden Property Trust, Equity Residential, JBG Smith, MAA and UDR.
Five multifamily REITs and private investors, including Starwood Capital Group, have contributed $108 million into a fund by early stage venture capital firm Real Estate Technology Ventures. The five REITs are Aimco, Boardwalk, Essex Property Trust, MAA and UDR.
Rexford Industrial Realty continues to expand its footprint in California with the purchase of industrial properties in South Los Angeles and Carlsbad. The REIT bought the properties for $40.3 million in cash.
A Morning Consult survey of 2,201 American consumers found 52% prefer that retail stores remain closed on Thanksgiving. The main reason given for shopping on the holiday was the available deals.
The Nebraska Crossing Outlets near Gretna, Neb., will reach nearly 400,000 square feet after a planned addition. The 38,000-square-foot expansion will feature a TJ Maxx/HomeGoods anchor.
A 32,450-square-foot retail center known as Golden Spring Plaza will break ground early next month in Las Vegas' Chinatown area. Developer Jenny Chang Au plans to open the property in late 2019.
Three existing buildings totaling 500,000 square feet in the Crystal City area of Northern Virginia, owned by JBG Smith, will initially serve as Amazon's new Virginia headquarters. The e-commerce giant has more ambitious plans for the area, which it is calling National Landing, and is acquiring two development sites that will add up to 4.1 million square feet of space.
Artificial intelligence is playing a growing role in retail, from tools that monitor shelf space to cashierless stores like Amazon Go that have the potential to end shoplifting. AI is also key to evolving innovations such as Modiface apps that let users virtually test new beauty products.
Three Nareit economists told the attendees at the association's annual conference that over the long term, REITs have performed well during periods of rising rates. REITs perform well when people are expecting stronger economic growth and demand is rising, said John Worth, executive vice president of research and investor outreach.