CoStar Insights

News in Review: Week of August 14

by Randyl Drummer | Aug 19, 2016
News in Review
In case you missed the news, here’s another roundup of the top national CRE stories reported by CoStar’s News team over the last few days.

In Typical Blackstone Fashion, PE Giant Aims to Shake Up Non-Traded REITs
The $100 billion private-equity behemoth has surprised the markets by launching its first non-traded REIT. Blackstone has filed an IPO to raise up to $5 billion, with major differences in fee structures and capital raising that could dramatically reshape the beleaguered non-listed REIT industry. 

Department of Justice Slams Door on Private Prisons
The DOJ announced it will be phasing out its use of private prisons. Publicly traded prison operators Corrections Corporation of America and The GEO Group Inc. saw their stock prices take a huge dive on news of the agency’s decision Thursday.

Multifamily Construction Increasingly Concentrated in Select CBD Markets
New apartment communities are more likely to be scattered among office skyscrapers than in the suburbs. About 60% of new units are now delivering in the top downtown office submarkets as developers follow the job market and target affluent renters. 

Chinese Developer Greenland Buys Massive Biotech Complex
Shanghai-based Greenland Group has announced its third $1 billion-plus investment in the U.S.  Greenland and its JV partners have acquired a 42-acre site from Shorenstein with capacity for 2.25 million square feet of life science and office development in South San Francisco. 

Medical Office Enjoying Strong Lease-up, Heightened Investor Demand
An estimated 12.2 million square feet of MOB space will come into service this year – a 37% increase over last year. Hospitals and health systems are driving growth in outpatient facilities located away from the hospital campus.

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