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 climbed 120.74 points, or 0.7 per cent, to 18,347.67. The Standard & Poor’s 500 index added 14.98 points, or 0.7 per cent, to 2,152.14. The NASDAQ composite added 34.18 points, or 0.7 per cent, to 5,022.82.
Benchmark U.S. crude added $2.04 to close at $46.80 a barrel in New York. Brent crude, a standard for international oil prices, rose $2.22 to $48.47 a barrel in London. In other energy trading in New York, wholesale gasoline rose 5 cents to $1.43 a gallon, heating oil rose 5 cents to $1.46 a gallon and natural gas rose 3 cents to $2.73 per 1,000 cubic feet.
Dow Jones industrial average closes at a record high — The stock market reached another milestone Tuesday as the Dow Jones industrial average closed at a record high. A day earlier, the broader Standard & Poor’s 500, a widely used benchmark for index funds, also reached a record-high close. Both indexes beat peaks set in May 2015. The Dow, which is made up of just 30 stocks, is an older and better-known barometer of the market than the S&P 500, but professional investors generally pay much closer attention to the S&P 500.
US job openings, hiring fell in May — U.S. employers advertised fewer jobs and hired fewer people in May — a bad month for the U.S. labour market before a surge in hiring in June. The Labor Department said Tuesday that job openings slid to 5.5 million in May, the fewest since December. Employers hired 5 million people in May, down slightly from April. The number of people quitting their jobs, which can reflect workers’ confidence in their job prospects, also ticked down. Still, the level of job openings and hiring overall “remain quite strong,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note. (AP)
U.S. Bank Regulator Toughens Commercial Real Estate Oversight “Credit risks have risen in U.S. commercial real estate as lenders compete more fiercely in a low rate environment, a federal banking regulator said on Monday, adding that it was stepping up its scrutiny of the sector. The Office of the Comptroller of the Currency (OCC) said in its semiannual risk report that while the financial performance of lenders improved in 2015 compared to a year earlier, credit risks were higher across the industry.” (Reuters)
Fed’s George Warns against Keeping Rates Too Low “Kansas City Fed President Esther George warned Monday that keeping interest rates too low could damage the economy, suggesting she may support an interest-rate hike at the U.S. central bank’s meeting in two weeks. Low interest rates ‘can create risks,’ George said in a speech to a business group in Lake Ozark, Missouri, according to Reuters.” (MarketWatch)
Here’s What Real Estate Experts Are Saying about Brexit “Brexit sent British real estate markets reeling, but how it will impact New York is hard to predict. A poll of leading power players found lots of high expectations, but with a few marked exceptions. Douglas Elliman chairman Howard M. Lorber forecast, ‘New York City will move to the No. 1 global city in the world, a spot that London currently holds. In addition, because of Brexit, interest rates have dropped to 30-year lows, causing mortgages to also drop significantly, thus raising the value of both residential and commercial real estate.’” (New York Post)
Tishman Speyer Secures Partner and Loan for 1.1 Million-Square-Foot Long Island City Office Project “A pair of new office towers will rise in Long Island City. Tishman Speyer announced on Monday that it has secured an investment partner, the Qatar-based investment firm Qatari Diar, a construction loan from Bank of the Ozarks and anchor tenants, including WeWork, for the roughly $700 million project.” (Crain’s New York Business)
Economy Watch: Best Large Cities to Live, According to WalletHub “Some real estate markets always do better than others, no matter what part of the cycle, and one factor is the attractiveness of individual metro areas as places to live. The quality of a place helps companies grow because they’re able to attract talented workers; that in turn spurs demand for space. That isn’t the only factor in the health of a market, but it’s increasingly important as Millennials put more value on the experiential aspects of their lives. WalletHub recently ranked the 62 largest U.S. cities in terms 31 metrics gauging the quality of a place.” (Multi-Housing News)
Suite $1B Deal for LA Century Plaza Hotel “Construction financing totaling just over $1 billion for the Century Plaza Hotel redevelopment in Los Angeles’ Century City area has been secured, according to developer Next Century Partners LLC. The funding consists of a $446 million senior loan from J.P. Morgan Chase, $120 million mezzanine financing from an investment vehicle managed by Colony Capital and $450 million of EB-5 financing provided by CMB Export LLC Regional Center.” (Commercial Property Executive)
Why Farmland May Become a More Popular Neighborhood Amenity than a Golf Course “Set in Hampshire, Ill., about 50 miles from downtown Chicago, Serosun Farms is a new home-conservation development, restoring wetlands, woodlands and prairie, and preserving farmland throughout. It’s very early in its development, but Serosun plans to incorporate about 160 acres of working farmland, making farm-to-table a way of life for residents through regular farmer’s markets. The community also offers eight miles of trails, an equestrian center and fishing ponds.” (MarketWatch)
Miami’s Condo Market Resurgence Prompts Debate “Pilloried as the hallmark of the 2008 financial collapse in the movie The Big Short, Miami and South Florida’s condo market has made a colossal comeback since 2011, begetting ever more opulent buildings and setting New York–style records for penthouses that have surpassed the $50 million mark. But with sales slowing since the end of last year, and an onslaught of new units slated to come to market through 2018, market observers near and far are wondering whether they’re about to see the same movie twice.” (Multifamily Executive)
Breaking Up is Hard to Do “He was the Desi to her Lucy, but the longtime partnership between retail maven Faith Hope Consolo TRData LogoTINY and her longtime consigliere Joseph Aquino came to a messy head last month when he accused her of spending his commissions on lavish beauty and fashion expenses. But Faith and Joe aren’t the first real estate team to part ways — nor are they the most high profile.” (The Real Deal)
Boutique Office Asset Trades in Jersey City “For $101 million, American Realty Advisors has purchased 30 Montgomery St., a 16-story boutique office tower in the Hudson Waterfront submarket of Jersey City, N.J., the company announced late last week. The 15-story, 315,385-square-foot building is one and a half blocks from the Hudson riverfront and is 71.6 percent leased to 46 tenants, including the Jersey City Department of Housing, Economic Development & Commerce.” (Commercial Property Executive)