Deka Immobilien Europe, a fund of German property firm Deka Immobilien, sold One Stockton Street, occupied by a flagship Apple store, and One Union Square to New York City-based Ashkenazy Acquisition Corp.
There are no unlucky numbers today for the industrial sector, which just reported a drop in nationwide availability for the 13th consecutive quarter, with rents and sales activity, especially on portfolios, expected to rise going into 2014.
Throughout the recovery from the recession, trophy properties in all commercial real estate sectors have been in high demand. Retail is no exception—those involved in the recent $850 million refinancing of Tysons Corner Center in Tysons Corner, Va., say the level of competition for the deal was cut-throat.
The recent $501 million deal for Chicago-based Harrison Real Estate Capital for a 17-site portfolio is indicative of the overwhelming demand for medical office buildings, according to the broker on the transaction.
Self-storage property owners have increased their income this year because they are enjoying the best of both worlds—lower vacancies and higher rents. In fact, increased rental rates haven't deterred customers, so owners continue to lift unit rates higher every few months to see how high they can lift the ceiling.
Sustainable building practices are sexier when they are announced with a new building, according to industry experts, than with an existing, newly retrofitted building. In fact, experts say it’s more exciting to include green features in the design and tout them in a new project press release than it is to find available maintenance capital, meet a long list of rules and measurements and then announce every few months that your building may save an extra 5 percent a year.
First-time players in the seniors housing industry still have a tough lesson to learn—that partnerships matter most in this niche property type. But there are more experts out there forming firms to help pair up inexperienced investors with established players.
The United States is starting to catch up to Europe at making buildings green, as politics begin to shift, states and major cities sign on with regulatory rules and more global-minded firms embrace energy efficiency, according to Charles B. Leitner III, chairman of the Urban Land Institute’s Greenprint Center for Building Performance.
Investors who want to jump onto the high-tech tenant bandwagon, but believe that that the prices have become too high, need not worry—virtually every industry that leases office will likely be adding a ton of tech jobs in the next decade.