Brookfield Asset Management is negotiating with Kushner Cos. to purchase a 50% stake in 666 Fifth Ave. in Manhattan, according to sources. If a deal is reached, the partnership reportedly would overhaul the tower with Brookfield's capital.
Brad Case, Nareit senior vice president for research and industry information, predicts that REIT stock prices will begin to reflect the companies' underlying values. REIT volatility has remained steady while increasing for stocks, which means investors may refocus on REITs.
REIT fundamentals and balance sheets should continue to improve as net operating income increases, says Morningstar analyst Chris Wimmer. He says that economic expansion, deregulation and tax law changes will also benefit REIT performance.
The bifurcation among US retail malls, in which high-quality retail centers do well and Class B and C malls struggle and often close, will continue as a trend, says Suzanne Mulvee, director of research at CoStar. Green Street Advisors predicts a 6% decline in market revenue per available foot for Class B and C malls from 2018 to 2022, while that metric for Class A malls is expected to register a 0.5% gain during that period.
Marriott International is opening five hotels at retail centers around the US that are owned by Simon Property Group. Simon has been incorporating hotels into its properties for 15 years, many of which are Marriott-branded, and the REIT plans to increase this activity.
Outfront Media, a player in the out-of-home market, has 42,000 billboards in its portfolio. The REIT has stayed ahead of changes in the advertising industry, says chairman and CEO Jeremy Male, who notes that "we've actually managed to grow our market share, even when there's been this huge seismic shift in the media landscape with this growth in online, particularly driven by Google or Facebook."
The planned $4 billion American Dream Miami complex in Miami-Dade County, Fla., took a step forward after developer Triple Five secured the county commission's final approval Thursday. Set to rise on 174 acres of land, the complex will feature 6.2 million square feet of retail and entertainment space, including a theme park and 2,000 hotel rooms, in addition to office and retail space covering 4 million square feet.
A 12-story residential and retail development in Skokie, Ill., broke ground Thursday. The project, with an estimated cost of $64 million, is expected to be finished by the end of next year.
NorthPoint Logistics will redevelop Jamestown Mall in St. Louis County, Mo., as a logistics center. The company was the only one to offer a proposal for the indoor retail space; it will pay $2.5 million for the space.
US companies raised their expenditures in the first quarter on items including premises, equipment and other capital goods at a rate on track to be the fastest since 2011, according to data from Credit Suisse. However, some investment strategists and academics argue that investors are more likely to prioritize steady returns and dividends over a company's own capital investment.
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