Kendall Village Associates has secured a $60 million refinance loan for Kendall Village Center in Miami from Ocean Bank. The 256,000-square-foot property has 13 buildings.
Gymboree has unveiled a reinvented line of kids' fashion offerings, created new websites for its brands and is rolling out an augmented reality mobile app this week. The retailer emerged from bankruptcy reorganization in September after closing around 360 stores, and it now operates 940 locations in the US and Canada.
Consumers considering replacing big-ticket items such as washing machines and televisions are shopping now to avoid tariffs set to take effect on imports in the coming months. A survey shows 38% of respondents were worried about negative effects from the Trump administration's new tariffs on imports in June, compared with 15% the previous month.
Student housing, manufactured homes and industrial assets did better than the broader commercial property market over the past 12 months, according to Green Street Advisors. Aside from the top three sectors, values have remained flat for the past year -- a plateau due in part to rising interest rates -- and in retail they have dropped 10%.
Fundraising for real estate private equity shows signs of growth in July after a second quarter when 48 funds raised a combined $23 billion, a decrease from 75 funds that raised $38 billion in the first quarter, according to Preqin. Firms that have raised capital this month include Taconic Capital Advisors, Acres Capital Corp., Abacus Capital Group and Life Care Services.
Some commercial real estate firms such as Sterling Organization are willing to invest in retail because they believe bargains can still be found and that the asset class is still viable. A private equity firm, Sterling plans to close a $500 million fund to invest in retail across the US, but CEO Brian Kosoy acknowledges that some investors were apprehensive of the asset class.
Tenant improvement allowances for office buildings rose by close to 10% in the last six months of 2017 -- and by an average 21.7% in six gateway markets -- which was a faster pace than rent growth, according to JLL. Rising construction costs and competition among landlords were some of the drivers.
So far, tariffs levied by the US on foreign products and the subsequent retaliatory tariffs have not hurt the commercial real estate industry, according to CBRE Capital Markets. However, if tensions continue to escalate, the industrial asset class would be affected, and overall growth could decline.
Last year IRET focused on shifting its portfolio into apartment assets, according to Mark Decker Jr., president and CEO. This year the company will concentrate on operations, its employees and developing better analytics around the business, he says.
The global economy is expected to grow 3.9% this year and next, an assessment by the International Monetary Fund that remains unchanged from its April forecast. However, it also highlighted the risks that a US-led trade war could have on global growth, with chief economist Maurice Obstfeld saying trade tensions are "the greatest near-term threat to the world's growth."