APRIL 20, 2019

Top Stories

Retail

Despite ‘Retail Apocalypse,’ U.S. Grocery Store Openings Jumped 30 Percent in 2018

By Liz Wolf, Contributing Writer

While a new report by investment firm USB estimates 75,000 more U.S. stores could close by 2026 as the shift to online shopping expands, it appears that the grocery sector continues bucking that trend. The report points to future closings of apparel stores, consumer electronics retailers and home furnishing stores, noting that online sales are expected to make up 26 percent of all retail sales in 2026, up from about 16 percent today.

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Industrial

Industrial Property Owners Increasingly Go After Value-Add Projects

By John Egan, Contributing Writer

As REITs and other landlords continue to reap the rewards of the red-hot industrial sector, they’re going beyond ground-up development to satisfy the growing appetite for space. Several industrial REITs, for instance, are coupling traditional development activity with value-add projects.

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Analysis

Office

Institutional Investors Target Secondary Markets for Office Acquisitions

By Sebastian Obando, Contributing Writer

The high cost of real estate in primary office markets has formed a significant barrier to entry for investors. The average sale price for office space has reached $439.05 per sq. ft. in primary office markets in March, up from $362.01 per sq. ft. five years ago. In secondary office markets, the average sale price hit $222.63 per sq. ft., up from $149.90 per sq. ft. five years ago, according to data from research firm the CoStar Group.

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Office

Office Developers Are Increasingly Adding Mixed-Use Components to New Projects

By Patricia Kirk, Contributing Writer

The desire for uplifting experiences is now invading the workplace, and forward-thinking office developers/owners are cashing in on this trend by integrating office space into mixed-use environments, says Mike Hoeck, San Diego-based senior vice president specializing in office leasing and sales with real estate services firm CBRE. Office space within a mixed-used environment leases up faster and commands rents that are 22 to 33 percent above rents at stand-alone office buildings, he notes.

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Gallery

Multifamily

The Cities with the Most Multifamily Rent Growth

By NREI Staff

National average apartment rents continued to go up in March, rising by 3.2 percent to $1,430, according to research firm Yardi Matrix. As always, however, some markets experienced rent growth that was far above the national average. Using data provided by Yardi Matrix, we take a look at the 24 cities that saw apartment rents spike the most in March 2019 compared to the period a year earlier.

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Commentary

Finance & Investment

For HNW Investors, Direct Real Estate Buys May be the Best Deal

By Jeff Sica

As sophisticated investors already know, including alternative investments in a portfolio helps protect against volatility and downside risk while providing an opportunity to achieve higher rates of return because of their low correlation to the traditional stock and bond markets.

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NREI Wire

World's Tallest Modular Hotel Set to Rise in Manhattan's NoMad

Bloomberg

Marriott International plans to build the world’s tallest modular hotel in New York City.

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