Here’s our latest roundup of top stories reported by the CoStar News team over the past week.
Good Times Roll For Warehouses As E-Commerce Drives Strongest Demand
Hamid Moghadam, CEO of the world’s largest industrial real estate company, says the last six months “have been the strongest in our company’s history.” CoStar data corroborates Moghadam’s bullish statement as tight vacancies caused average rents to increase by nearly 7% in the second quarter.
Retail REITs Walk Away From Debt-Laden Malls As Prickly Older Loans Come Due
The retail property sector appears to be strengthening, but the owners of a handful of lower-quality shopping centers and malls, including Simon Property and WP Glimcher, are having to hand back the keys through foreclosure as loans financed 10 years ago come due. Kimco Realty may be next.
Despite Big Real Estate Returns, Largest US Pension Funds Post Weak Results
The three largest U.S. public pension funds, including CalPERS, have all reported weaker-than-expected returns. Public market volatility, particularly foreign investments hammered by the potential impact from the Brexit, eclipsed respectable real estate returns to put a drag on the funds’ bottom lines.
NAIOP Report Forecasts Accelerated CRE Construction Through 2018
Spending on U.S. commercial property development is expected to increase again next year and continue to accelerate through at least 2018 as construction hits its stride later in the economic recovery than usual. One sign of coming activity is the five-month growth streak in architect billings.