Here are the stories that CoStar News readers thought about to be the most intriguing and newsworthy in 2017: # 1 Amazon Outgrows Seattle: Starts Search for Second HQ City in North America
In hanging the prospects of investing billions of dollars in the neighborhood and adding 10s of countless high-paying jobs, online retail giant Amazon kicked off a mad scramble among jurisdictions in September after the firm provided an RFP for a new co-headquarters. Debates over which places finest matched the online seller’s mega-office requirement taken in the CRE industry and will likely continue to do so ahead of Amazon’s site choice, which is anticipated sometime this year. # 2 BGC Successfully Spins-Off Newly Rebranded Newmark Knight Frank as Separate Publicly Traded Business
More than a year in the works, Newmark Group, Inc. (Nasdaq: NMRK )finished its going public of 20 million shares of common stock, the very first IPO for a real estate services firm in several years. Howard Lutnick, chairman and president of Newmark Knight Frank moms and dad company BGC Partners, Inc., (Nasdaq: BGCP), made good on his plans to spin-off Newmark as a different openly traded company in the 4th quarter. The move added to market speculation that Cushman & & Wakefield might follow with an IPO of its own in 2018. # 3 Florida, Texas CRE Begin Long Healing Effort from Back-to-Back Storms
Much of the country was fixated in August on the effect of a pair of hurricanes that ravaged much of Florida and the Texas-Louisiana area. And while the extent of the devastation wasn’t as great as very first feared, initial combined damage quotes foresaw $29 Billion in business home losses with $150 billion to $200 billion in financial effect attributed to the back-to-back natural disasters.
# 4 Excessive House Building, or Not Enough? In a midyear multifamily update, we examined recent market analysis that found U.S. housing supply remains well listed below long-lasting market averages even as developers continue to pursue new downtown apt. tasks and single-family homebuilding lastly ramps up. # 5 Amazon/Whole Foods$13.7 Billion Combining a Game Changer however Not Deal Breaker for Shopping Mall Landlords
The news that Amazon was buying Whole Foods captured many retail observers by surprise and rattled already tense shopping mall owners. However the deal catapulting the world’s biggest e-tailer into the leading ranks of the U.S. grocery industry was rapidly reappraised as proof of the continuous combination of online and physical retail stores which well-located retail home will have a place even as e-commerce continues its fast development. # 6 The Future of Autonomous Driving is Coming Down the Roadway Fast with Significant Ramifications for Real Estate
Fast-developing driving technologies are expected to introduce a $7 Trillion ‘Guest Economy’ by 2050 inning accordance with some futurists. The expected wide-ranging impact on property anticipated to affect everything from recapturing parking area, to amenities to zoning, and is currently starting to have an influence on themarket. # 7 Europe’s Most significant Shopping mall Owner Buying Westfield in Major Mall Debt Consolidation Move
In a surprising relocation, Paris-based Unibail Rodamco agreed to get shopping mall owner Westfield Corp. for almost $16 billion. The decision Unibail, which provides it entry into the United States market, followed news that General Development Properties Inc. (GGP) had actually just recently declined a takeover quote from Brookfield Home Partners, which has a large minority stake in the company. Given Unibail’s offer, we might not have actually heard completion of a GGP-Brookfield tie-up. # 8 Exclusive: NGKF Ramping Up National Valuation/Appraisal Practice With Key Employs, Growth Strategies
CoStar News was one of the first to report on strategies by national CRE services firm NKF to beef-up its evaluation and appraisal business lines ahead of its anticipated IPO later in the year. NKF wasn’t alone in its quest to expand its assessment platform. # 9 Greystar-Led Fund Taking Monogram Residential REIT Private in $3 Billion Transaction
In a sign of the continued strong appeal of multifamily home for financiers, home REIT Monogram Residential Trust, Inc. (NYSE: MORE)accepted a buyout offer from a newly formed continuous life fund, Greystar Development and Earnings Fund, led by Greystar Realty Partners in a transaction valued at $3 billion, including debt. In another indication of the sector bring in ‘big cash,’ Starwood struck an offer to buy out Turning point Apartments REIT for $2.85 billion, including 24,000 apt. units to Starwood Capital’s portfolio. # 10 Chinese Govt. Relocate To Stem Circulation of Funds to Overseas CRE Investments
In August, CoStar News reported that the State Council of individuals’s Republic of China formally revealed measures to curb outbound investment – a move Chinese authorities had been hinting at all year. The clampdown was expected to effect offer rates for major assets in the largest gateway markets, which had actually become a preferred target for Chinese financiers. Nevertheless, market analysts see plenty of other investors– both foreign and domestic– offered to fill the gap. The clampdown on Chinese overseas financial investment followed news earlier in the year that some members of Congress had actually ended up being concerned over the national security threat connected with the growing Chinese ownership of U.S. assets. # 11 Dollar Stores Remain Retail Success Story, Continue to Defy Online Disturbance
Dollar shops stayed a retail success story in 2017, continuing to defy online disturbance by expanding into untapped, low-density areas to decrease the online danger and drive sales growth. # 12 CVS-Aetna Combination Signals Coming Merging of Health Care and Retail Real Estate
The hit offer of CVS Health (NYSE: CVS)accepting acquire Aetna Inc. (NYSE: AET) for $ 77 billion has the potential not only to essentially change the health plan market but also radically reshape the retail and healthcare realty markets. # 13 Institutional Investors Coming Around to Trainee Real Estate, Sector Seen as Recession-Resistant Alternative to Apts.
As soon as an overlooked specific niche, the student real estate sector is drawing in increased attention from significant investors, who see the sector as using less rental development volatility and a recession-resistant hedge to traditional homes. # 14’Amazon Impact’has Bankers Re-Examining Their Loan Portfolios, Tightening Underwriting
In a midyear modification from concentrating on direct exposure to construction and development and multifamily lending, bank executives and experts refocused on a new topic this previous quarter: attending to perceptions of retail weakness in their property lending. The shift in focus followed a drop in CRE loaning development by banks in the very first quarter to its slowest level in two years. # 15 Lickerman Steps Down, Mobley Called CEO for Americas at Cushman & & Wakefield News on personnel relocations and new hires is constantly a constant leading read by CoStar readers and 2017 was no exception. Among the many workers news to draw in readers was the late-November bombshell come by Cushman & & Wakefield announcing the departure of Tod Lickerman, who was named CEO of the Americas in a major adjustment of the brokerage’s senior leadership simply over a year ago, and his replacement, Shawn Mobley, who most just recently acted as president of the business’s East Department.
CoStar News Expanding to Bring You More CRE Coverage in 2018
Search for more of the very best CRE news from CoStar in 2018. We’re expanding our coverage in significant markets, bringing in experienced business press reporters to enhance our news throughout leading markets and CRE sectors. The CoStar News team would like to thank all our readers for reading this year, and eagerly anticipate bringing you even more essential news and insights in the New Year.