JUNE 15, 2019

Top Stories

Retail

A Bankruptcy May Be in Forever 21’s Future, But the Chain Will Survive, Experts Say

By Liz Wolf, Contributing Writer

The chain is exploring options that would “shore up its liquidity and allow its founder Do Won Chang to maintain control,” according to Bloomberg. However, that strategy poses some questions from industry experts. “I don’t know how you can do both,” says long-time retail consultant Jeff Green, who recently rolled his firm, Jeff Green Partners, into Hoffman Strategy Group.

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Finance & Investment

New Best Practices Spur Fundraising for Non-Traded REITs

By Beth Mattson-Teig, Contributing Writer

Non-listed REITs posted a “blockbuster” month of fundraising in April with nearly $1 billion flowing into the sector. According to the latest data from Robert A. Stanger & Company, the year-to-date fundraising total of $2.7 billion (through April) is more than the $1.3 billion raised during the same period in 2018. The rise in fundraising is due to a combination of factors. The non-listed REIT industry has done some heavy lifting over the past few years to reduce heavy fee structures and improve transparency and reporting.

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Office

Flexible Office Space Operators Focus on Add-On Services to Develop New Revenue Streams

By Patricia Kirk, Contributing Writer

Looking for ways to create a better tenant experience and boost their bottom lines, flexible office operators are generating new revenue streams by offering additional on-site services and establishing new business lines.

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Analysis

Multifamily

Co-Living and Student Housing Collide, as People Struggle to Afford Rent in Expensive Urban Markets

By Bendix Anderson, Contributing Writer

Co-living is a growing trend in the most expensive U.S. housing markets, where tenants in a single apartment share common areas such as the kitchen. The model is similar to student housing, where students also share suites of bedrooms with shared kitchens. It shouldn’t be surprising that some of the largest co-living developments are filling up with students, especially with graduate students, who have a lot in common with the young professionals who tend to live in co-living properties.

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Retail

Mall Landlords Can Benefit from Retail Space Sharing

By Sebastian Obando, Staff Writer

Rising vacancies are giving rise to sharing retail space, a concept involving multiple digital brands sharing space with shorter term rental agreements. Traditional bricks-and-mortar retailers normally sign a lease of around five to 10 years, according to Jeff Berta, senior director of real estate development at Structured Development, a real estate development company.

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Gallery

Office

The 25 Most Expensive Office Markets

By NREI Staff

Prime office occupancy costs in Hong Kong (Central) were up 5.0 percent year-over-year as of the end of the first quarter, further cementing its place as the most expensive office submarket on the globe, according to new data from CBRE in its Global Prime Office Occupancy Costs report. Overall, six of the top 10 and 12 of the top 25 most expensive markets are in the Asia Pacific region. The U.S. accounts for another eight of the top 25.

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Commentary

Alternative Properties

Navigating the Complexities of Hotel Financing

By Steve Bram

Now is one of the best times in recent history to refinance existing hotels based on the continuation of historically low interest rates. That said, lenders today remain careful and selective in their hotel underwriting, making it more important than ever for borrowers to reach out to many different financing sources, and to present lenders with clear, well-documented financing packages and business plans in order to receive competitive loan options.

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NREI Wire

A $4 Trillion Risk Tied to Freeing Fannie and Freddie Could Hurt U.S. Homebuyers

Bloomberg

The Trump Administration’s urgency to free Fannie Mae and Freddie Mac from federal control has some on Wall Street worried that it might happen without the U.S. government providing an explicit backstop of the companies’ $4.7 trillion of mortgage securities.

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