Each week, JLL Atlanta presents a roundup of noteworthy commercial real estate stories from a variety of industry publications. Here are five stories that caught our eye recently.
Surge in Commercial Real-Estate Prices Stirs Bubble Worries by Art Patnaude and Peter Grant of The Wall Street Journal.
“’We’re calling it a late-cycle market now,’ said Jacques Gordon, head of research and strategy at Chicago-based LaSalle Investment Management, which oversees $56 billion of property assets. While it isn’t time to panic, Mr. Gordon said, ‘if too much capital comes into any asset class, generally not-so-good things tend to follow.’”
Environmental and Economic “Green” Go Hand-in-Hand by Amanda Smith of Blueprint CBRE.
“Awareness of the environmental impact of commercial real estate has been growing over the past decade, further fueled by public debate about energy dependence and the many industry reports and studies showing that energy efficiency in buildings is simply ‘good business,’ according to the 2015 National Green Building Adoption Index, an academic study conducted by researchers from Maastricht University and real estate services firm CBRE on green building certifications in the largest U.S. office markets.”
Construction Spending Growing At Fastest Levels Since 2006 by Real Estate Weekly staff.
“Public construction spending rose 1.6 percent from the month before and 8.0 percent from 12 months earlier. ‘Several of the private categories have risen especially fast,’ [Ken] Simonson said. ‘Whether they can keep growing depends in part on companies being able to find enough skilled workers, a problem many contractors are already facing.’”
What the Falling Yuan Will Mean for U.S. CRE by Christopher Macke of NREI.
“Overall, real estate should be a net beneficiary of the depreciating yuan if investors are increasingly drawn to the asset class, providing additional pricing support. The downward pressure exerted on Treasury rates will further support future pricing as the reference rate should remain stable or even decline further.”
Apartment Demand Stays Hot, but Lending Tightens by Mark Heschmeyer of CoStar.
“’The decline in the debt financing index is significant,’ said Mark Obrinsky, National Multifamily Housing Council senior vice president of research and chief economist. ‘In large part it reflects two things: the modest rise in interest rates, and tightening initiated by Freddie Mac and Fannie Mae as they began to approach their lending volume caps. Regulator action to keep multifamily mortgage finance flowing has averted a crisis, but lending conditions remain somewhat tighter.’”