Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.
The Dow Jones industrial average lost 174.09 points, or 1 percent, to 17,541.96. The Standard & Poor's 500 index tumbled 24.75 points, or 1.2 percent, to 2,041.91. The Nasdaq composite index skidded 72.35 points, or 1.5 percent, to 4,848.37.
Benchmark U.S. crude fell 49 cents, or 1.3 percent, to $37.26 per barrel in New York. Brent crude, used to price international oils, dropped 41 cents to $39.43 a barrel in London. In other energy trading, wholesale gasoline fell 1 cent to $1.38 a gallon. Heating oil slipped 1 cent to $1.13 a gallon. Natural gas rose 11 cents, or 5.6 percent, to $2.02 per 1,000 cubic feet.
Google Driverless Cars Coming To Arizona - Governor Ducey and Google announced Thursday the launch of driverless car testing in Arizona -- the fourth place in the country to have the program. Here's what Governor Ducey said,“Google’s selection of Arizona for this testing program is just another sign that Arizona is on the cutting-edge when it comes to innovation. When you think of companies changing the way we live, Google is at the top of the list, and their self-driving car technology is transformational. We welcome them to our state, and look forward to being part of this innovative project." Here's what Google said about Arizona, "Arizona is known as a place where research and development is welcome, innovation can thrive, and companies can set up roots."
MetLife’s Shedding of ‘Too Big To Fail’ Designation Could Boost Commercial Real Estate Lending “Ultimately, we can reasonably expect MetLife’s commercial real estate lending to increase in the medium-to-long term since by reducing the government-imposed capital requirements required of SIFIs, money has been freed up that can be put toward other purposes, such as lending activity. In addition to the funds freed up directly from the capital requirements, getting rid of the SIFI designation could also provide indirect savings by limiting the stricter reporting requirements and auditing processes.” (Forbes)
Towers of Dabble: Commercial Real Estate Signals Trouble Ahead? “Man’s long determined history of dabbling in the building of touted towers, surely not for his self-gratification, but rather to bring him closer to God, has rarely been met with benevolence. Maybe God doesn’t like man, who He created after all, attempting to smash through His glass ceiling. Consider, if you will, the first known example of such an attempt. Having heeded Noah’s warnings, a postdiluvian band of survivors just couldn’t resist taking a stab at the celestials, raising the Tower of Babel they were sure would be gloriously received.” (Nasdaq)
After Six Years of Commercial Real Estate Growth, New Forecast Isn’t So Sunny “Nationwide commercial real estate activity is expected to decline during the next three years, according to a new industry forecast. Commercial property prices are also likely to grow at a slower rate, according to the new survey by the Urban Land Institute. The Washington, D.C.-based industry trade group surveyed top real estate economists and analysts for its new consensus forecast.” (The Dallas Morning News)
Pacific Sunwear Latest Retailer to File for Bankruptcy “Pacific Sunwear has filed for bankruptcy protection, suffocating under the weight of high rent and a large debt load. The teen retailer, known for its surf- and other beachwear, said on Thursday morning that private equity firm Golden Gate will convert 65% of PacSun’s debt in exchange for equity and inject at least another $20 million in capital. The company also landed $100 million in bankruptcy financing from Wells Fargo and said this Chapter 11 filing would not affect its operations or ability to pay vendors.” (Fortune)
After Years of Ultra-Luxury Condo Development, Lenders are Tightening the Purse Strings “Buyer interest has slackened with financial turmoil in markets like China and Russia potentially dampening foreign demand for super high-end Manhattan condos. This, in turn, has led to a tightened financing environment for such developments, a number of industry experts told the Commercial Observer. While money is still available for the right projects, lenders and investors have become more circumspect with regard to ultra-luxury deals. (Commercial Observer)
What Private Real Estate Investors Are Targeting This Year “In the first of a five-part “Industry Insights” event series, The Real Estate Council and Real Estate Deal Sheet gathered top executives in the private investment realm to find out where they plan to focus their time and capital in 2016. Held at the Dallas Country Club, the morning event began with a keynote presentation from Albert Rabil III of Kayne Anderson Capital Advisors, one of the nation’s largest investors in its asset classes.” (D Real Estate Daily)
Secret Criminal Investigation Targeted Fraud at Trump Soho: Report “The Donald Trump document load from decades of civil lawsuits could already fill the floors of several Trump Towers, but a recent and previously unreported criminal investigation with the presidential candidate’s name on it has been hiding in the archives. In 2010, Donald Trump and partners Bayrock Group and the Sapir Organization were hit with a lawsuit for lying about how many units they sold at the condo-hotel tower known as Trump Soho at 246 Spring Street. According to the suit, apartment buyers were led to believe that they were buying into a highly-coveted new building, with over half the apartments already sold.” (The Real Deal)
Axio: Annual Effective Rent Growth Surpasses 4% Once More “For the seventh straight quarter, annual effective rent growth eclipsed 4% in 2016’s first quarter, according to Dallas-based Axiometrics. That streak of growth has only happened one other time (the fourth quarter of 2010 through the second quarter of 2012) in the company’s 21-year history. But annual effective rent growth did dip in the first quarter. It was 4.1% in Axiometrics' most recent report, 52 basis points lower than the 4.6% reported in the fourth quarter of 2015 and 89 basis points lower than the 5.0% growth one year earlier.” (Multifamily Executive)
San Francisco Real Estate Prices among Most Inflated in the World “It’s old news by now that San Francisco has some of the most expensive real estate in America, to the point that if you want to keep things interesting it may be time to start making comparisons overseas. In an Economist study of housing prices in 26 countries around the world, San Francisco beat out nearly every other cited city. The study found roughly a 5.1 percent annual increase in home prices in wealthy countries worldwide, and an average of an 8.3 percent increase in major cities in those countries.” (Curbed San Francisco)
Whole Foods Sets Opening Date for New ‘365’ Store Chain “Whole Foods Market will open the first store under its new “365” banner on May 25 in the Silver Lake neighborhood of Los Angeles, the company said this morning. The opening date is set for just more than a year after the grocer announced plans to build out a new store concept that would offer customers lower prices than its original stores. The name of the new chain comes from Whole Foods’ private label brand, whose products are modestly priced relative to other brands in the original stores.” (Fortune)