Commercial Real Estate News Roundup For 7/4/14

Jul 4, 2014

  • COMMERCIAL REAL ESTATE DIDN’T BOOM AND BUST. IS THIS WHY?

When the U.S. housing market boomed and busted in the past decade, commercial real estate was comparatively placid. Prices were more stable, there was little overbuilding, and bankruptcies never soared.

The question is why.

A research paper attributes the stability of commercial real estate at least in part to the “civilizing influence” of real estate investment trusts, which are a bigger presence in the market than they are in housing.

Read more here.

  • FOUR U.S. MARKETS RANKED AMONG TOP FIVE GLOBAL PICKS FOR CRE INVESTMENT

Foreign commercial real estate investors ranked four U.S. markets among their top five global picks for acquiring commercial property, according to the results of the 22nd Annual Survey taken among the members of the Association of Foreign Investors in Real Estate (AFIRE).

  • WORLD’S TOP ’12 CITIES’ SHAPED BY FAME, FORTUNE AND REAL ESTATE INVESTMENT

According to a new report from international real estate adviser Savills called 12 Cities, New York and London have been named as leading international cities of the world.

Savills classes cities based on their prominence and fame, as well as economy and size; factors that will determine the cross-border investability of their real estate and their future as well as their current ‘world class’ city status.

Read more here.

  • COMMERCIAL PROPERTY DEALS HEADING FOR 10-YEAR HIGH

Commercial property transaction volume in 2016 will exceed 2006 levels, reaching $430 billion, according to a U.S. real estate forecast released Tuesday.

The findings are based on a survey of 39 leading industry economists and analysis conducted between Feb. 19 and March 14 to gauge their sentiment about the direction of the real estate industry. The forecast reflects consensus reached on 27 economic and real estate indicators.

Read more here.

  • LOFTY PRICES DRIVE TREND IN COMMERCIAL-TO-RESIDENTIAL CONVERSIONS

As apartment prices skyrocket amid growing global demand, more and more office buildings are being converted into residential buildings.

Two weeks ago, the Chetrit Group filed plans to convert part of the Sony Building at 550 Madison Avenue in Midtown from office space to 96 condominiums. The units will join a growing number of former commercial towers turned residential. Read more here.

  • FAA HAS CLAMPED DOWN ON REALTORS USING DRONES ‘FOR MONTHS’

As part of its effort to clamp down on the commercial use of drones, the Federal Aviation Administration (FAA) has started investigating real estate agencies that use flying robots to take aerial pictures and videos of houses and apartments.

Several realtors have received inquiries from the FAA regarding their use of drones, either by phone, letter or even subpoena, according to interviews with several people familiar with drones and the real estate business.

The FAA maintains that its current regulations ban the use of drones for any commercial purposes, which include real estate agents or aerial photography companies that realtors hire to take shots of properties; in a document last week, the FAA clarified its rules on drones to include realtors.

Read more here.

And that’s it for this week’s commercial real estate news.

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