Target will open about 12 small-format urban stores this week in high-profile cities including Chicago, New York City, Philadelphia and Los Angeles. A store slated to open in the Uptown neighborhood of Minneapolis will offer goods and amenities aimed at young professionals, including organic groceries, workout wear and a Starbucks.
Amazon and major apartment owners and landlords have signed an agreement to install Amazon Hub locker systems in their buildings, a deal that represents some 850,000 units across the US. AvalonBay, Bozzuto Group, Equity Residential and Greystar are among the companies taking part in the agreement, which will alleviate the problem of how to manage the stack of packages residents order.
Workspace Property Trust plans to raise up to $100 million in an initial public offering, according to a regulatory filing. The REIT will list on the New York Stock Exchange and use the proceeds to purchase common units in its operating partnership from Safanad Suburban Office Partnership.
China Young Professional Apartments has received approval from the Shenzhen Stock Exchange for a $270 million listing of asset-backed securities that will be offered to retail investors. It will be the first housing rental quasi-REIT in the country; the few quasi-REITs so far have focused on the office asset class.
The correlation between the broad REIT market and the broad stock market has been especially low recently. Brad Case, NAREIT's senior vice president for research and industry information, looks more closely at current REIT-stock correlations for 10 sectors and subsectors of the REIT market.
Much of the financing for the debt and equity backing Related Cos.' Hudson Yards complex comes from overseas sources, reflecting their appetite for US assets. Lenders include Deutsche Bank, Bank of China, HSBC Holdings, Credit Agricole and Children's Investment Fund of the UK; equity investors include Oxford Properties Group -- the main partner on the project -- and Mitsui Fudosan Co.
New home construction dropped 4.7% last month, the largest decline in six months, for a seasonally adjusted annual rate of 1.13 million units, according to the Commerce Department. The drop pointed to weakness in the single-family and apartment building asset classes, as well as the effects of hurricanes Harvey and Irma.
The consumer perception of the economy is strong, at a 13-year high, the jobless rate is low and consumers are ready to shop. If retailers fail to hit marks this holiday season, it will not be due to lack of consumer interest or ability to buy.
Analysts believe that weaker shopping centers will cycle through various retailers for a long time, staying "zombies" in the long term before being leveled or repurposed. Long-term contracts, often as long as 10 to 20 years, and strict regulations eliminate the ability to quickly redevelop these properties.
Retail rents in Manhattan, N.Y., fell 6.4% on average in the third quarter compared with the second quarter, or 13.4% when compared year-over-year, CBRE reports. Property owners are working to fill the 197 available spaces in Manhattan, down from 212 in the first quarter.
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