According to a recently released Cushman & Wakefield report, “Human Capital: The War for Talent and its Effect on Real Estate,” current demographics trends will dramatically affect all segments of real estate during the next two decades.
Regency Centers Corp., an owner, operator and developer of 332 shopping centers, recently launched the latest sustainability salvo in the retail world by completing a $250 million sale of bonds solely dedicated to build or buy LEED properties.
Target, usually one of analysts’ retail favorites, is reeling after a disappointing first quarter, lawsuits and damages from its massive data breach and what may have been a huge misstep in its Canada entry last year. The missteps are cause for concern, according to retail experts, but the company will likely pull out of the funk if it goes back to what made it successful in the first place.
Manufacturing is coming back to the U.S., both in terms of jobs and demand for industrial facilities. But the physical size and the number of workers the plants employ won’t likely match the massive factory floors of the past century.
Hospitals and other health care providers, already dealing with changes brought by the new Affordable Care Act (ACA), are selling their assets to third party owners to reap the benefits of escalating property prices.
Two important demographic trends are converging in the seniors housing market: (1) The baby boomers are hitting their retirement age. (2) The general population, able to market their homes for more favorable prices, are looking to move into an urban lifestyle.
The current energy boom, created by the exploratory horizontal drilling and hydraulic fracturing (commonly called “fracking”) of sand and shale formations, has dramatically dropped vacancies and raised rents in all property sectors throughout states like Colorado, Pennsylvania, Texas and Ohio.
Office leasing activity in San Francisco shot up by 25 percent in the first quarter, with six leases signed for more than 100,000 sq. ft., according to a report by commercial real estate services firm JLL. Five of those leases were by prominent technology firms.
The office sector has been patiently waiting for good news since the end of the recession, McCarthy says. However, expansions and new office leases have been slow to materialize as business executives exercised caution.
According to a recent Prologis Inc. white paper, “The Growth of Logistics Real Estate,” global net absorption this past year reached 350 million sq. ft., the highest level since the beginning of the global financial crisis, and activity continues to look good this year.
Medical office buildings (MOBs) are starting to overtake hospitals as the preferred new property type for health care systems, but real estate market statistics for MOBs are still lumped into the broader health care category, making data and trends hard to obtain.
The average occupancy rate for seniors housing properties edged closer to 90 percent in the first quarter, as the industry’s property types gained absorption due to slow construction and increasing demand.