Real Estate Daily News Buzz – July 13, 2015

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.

Friday, the Dow Jones industrial average climbed 211.79 points, or 1.2%, to 17,760.41. The Standard & Poor’s 500 index rose 25.31 points, or 1.2%, to 2,076.62. The NASDAQ composite gained 75.30 points, or 1.5%, to 4,997.70.

Benchmark U.S. crude fell 4 cents to close at $52.74 a barrel in New York. It ended last week at $56.93. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 12 cents Friday to close at $58.73 in London. Wholesale gasoline fell 2.8 cents to close at $2.017 a gallon. Heating oil fell 0.4 cent to close at $1.740 a gallon. Natural gas rose 4.4 cents to close at $2.770 per 1,000 cubic feet.

China’s underground banks spread pain as defaults rise – Fan Xiaolin, an engineer in Changsha in central China, thought he was safe when he deposited his family’s savings of 800,000 yuan ($130,000) in a private finance company he said was recommended by employees of state-owned Bank of China. The company, part of an informal industry of lenders and investment managers that operates outside China’s state-run banking system, collapsed six months later as economic growth slowed and businesses struggled. Today, Fan said he and about 100 other depositors in Hunan Bofeng Asset Management Ltd. protest several times each week outside state banks and government offices, demanding their money back. (AP)

Yellen: Fed still on track to raise rates this year – Federal Reserve Chair Janet Yellen said the Fed is on track to start raising interest rates later this year but expressed multiple concerns over headwinds that are still holding back the U.S. economy. She described the outlook for the economy and inflation as “highly uncertain,” amid lingering weakness in the labour market and new potential threats overseas. Yellen, speaking on the economy for the first time since the Fed’s June meeting, saw reasons for encouragement. Consumer spending appears to be picking up, and employment is likely to keep expanding, she said. (US News)

US wholesale stockpiles post biggest gain in 6 months in May – U.S. wholesalers boosted their stockpiles in May by the largest amount in six months, while sales rose by a modest amount. Wholesale stockpiles rose 0.8%, double the gain in April and the largest one-month rise since November, the Commerce Department reported Friday. Sales were up 0.3% in May following a 1.7% surge in April. That had been the biggest sales increase in more than a year.

Will Market Turmoil in China Impact U.S. Real Estate Investment? “Turmoil in the Chinese stock market could have a quick and direct effect on U.S. housing. From newly built homes in Irvine, Calif., to Miami condos to Manhattan luxury towers, Chinese money has been flowing freely. The question now is, will trouble in the Chinese stock market translate into more or less cash coming into American neighborhoods?” (NBC News)

REIT Rate Hike Fallout Fears May Be Overdone “Rising rates increase the costs for REITs that have to borrow heavily for new investments. Furthermore, yield-hungry investors who buy REITs for their high dividends during times of low bond yields often abandon them once bond yields start to rise. But not all REITs suffer equally when rates fall, and a broad selloff may be a ‘knee-jerk reaction,’.” (Reuters)

Brooklyn Navy Yard Could More Than Quadruple in Size “The Brooklyn Navy Yard is ripe for more commercial development beyond the new 675,000-square-foot office building, Dock 72, unveiled by Boston Properties and Rudin Management Co. earlier this week. Dock 72 will eventually help bring the total amount of commercial space at the Navy Yard to more than 5 million square feet, but there is room for more. Much more. Rough estimates put the amount of untapped development rights at the Navy Yard between 15 million and 20 million square feet.” (Crain’s New York Business)

Tishman Speyer Shops Around in DC “Two adjoining properties in the Washington, D.C., central business district are the latest acquisitions by Tishman Speyer, which will redevelop them with two new buildings, one of which will be home to CBS News’ D.C. bureau, the developer announced Tuesday.” (Commercial Property Executive)

Nothing But Sunshine for This Cloud-Based REIT “Digital Realty generates around 60% of its customer-driven data rental income as Turn-Key Flex. These properties are fully-commissioned, flexible date center properties with dedicated electrical and mechanical infrastructure. Digital Realty makes the capital investment in the infrastructure and the projects are complete in 26 weeks.” (Seeking Alpha)

Amid Commercial Consolidation, Brokers Join to Strengthen Tenant Side “With the global companies getting bigger and more global, more than a dozen boutique tenant-representation brokerages in 23 cities have formed a new network they say gives tenants a stronger hand at the negotiating table.” (The Real Deal)

Donald Trump Blasts Efforts to Review Contracts He Has With NYC, Wants City to Thank Him for ‘Amazing’ Work “Donald Trump blasted efforts to review his city contracts over his remarks on Mexican immigrants and boasted city officials should thank him for the ‘amazing’ job he’s done with the properties. Mayor de Blasio said the city would review Trump’s contracts — for the new Ferry Point golf course in the Bronx, two ice skating rinks, and a Central Park carousel — after he disparaged Mexican immigrants.” (New York Daily News)

NYCHA to Announce Sites for Mixed-Income Development on Public Housing Land in August “The troubled New York City Housing Authority revealed to reporters yesterday that it would announce in August the first round of requests for proposals from developers looking to build 50/50 market rate/affordable buildings on parcels of the authority’s land.” (Commercial Observer)

Dick’s Sporting Goods to Offer Two Concepts Under New Banner “The retailer will open its first “All-American Sports Center” on July 23 at McGowin Park in Mobile, Alabama. The concept features a Dick’s Sporting Goods and a Field & Stream store in one location under the same roof. Customers benefit from an expanded assortment and the ability to move between the two stores once inside, creating a unique, exciting shopping experience, Dick’s said.” (Chain Store Age)