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.
Thursday, the Dow Jones industrial average gained 98.76 points, or 0.5 per cent, to 18,392.46. The Standard & Poor’s 500 index rose 14.06 points, or 0.7 per cent, to 2,177.18. The NASDAQ composite added 44.34 points, or 0.8 per cent, to a record 5,339.52.
U.S. benchmark crude rose 98 cents to close at $46.32 a barrel, while Brent crude, used to price international oils, gained 82 cents to close at $47.65 a barrel. In other energy commodities, heating oil rose 2.5 cents to $1.45 a gallon, wholesale gasoline rose less than 1 cent to $1.40 a gallon and natural gas fell 7 cents to $2.99 per 1,000 cubic feet.
The Rio Nuevo Board meeting will be held Tuesday, September 27, 2016 starting at 1:00 pm at Arizona State Building, 400 W Congress, Suite 222, Tucson, AZ. Discussion may include an update on various Board projects including the additional renovations of the TCC Arena for the Roadrunners, the Greyhound Bus Terminal, the Mercado Annex and the AC Marriott Hotel. Click here for full agenda: rio-nuevo-9-27-agenda
Top 20 Under 40 competition! Each year, ENR's regional editions celebrate the excellence of young construction professionals. In 2017, each region will highlight 20 individuals under the age of 40 who represent the "Best-of-the-Best" in their construction and design careers by giving back to their industry and communities. For this Top 20 Under 40 program, ENR's regional editions will be accepting nominations from all 50 states, Washington D.C., and Puerto Rico. You can nominate anyone who works at any level of the design or construction industry who has had an impact in their respective fields or within their company, who exhibit qualities such as leadership, career progress, community involvement and creating landmark projects for their region. Questions? Please contact enr.regional.contests@enr.com.
The Interstate 10/ Ina Road Traffic Interchange project in Marana just north of Tucson continues its first phase of construction, with work scheduled to last through early 2017. The work includes constructing a detour for traffic to use when the Ina Road traffic interchange closes, building temporary construction easements and major utility work. During this phase, Ina Road will remain open.
US average 30-year mortgage rate declines to 3.48 per cent — Long-term U.S. mortgage rates edged lower this week. Mortgage giant Freddie Mac said Thursday the average for the 30-year fixed-rate mortgage declined to 3.48 per cent from 3.50 per cent last week. The benchmark rate is down from 3.86 per cent a year ago, and is close to its all-time low of 3.31 per cent in November 2012. The 15-year fixed mortgage rate eased to 2.76 per cent from 2.77 per cent. (AP)
US home sales fell in August as inventories plummet — Americans retreated from home-buying in August, as a worsening inventory shortage appears to be hurting sales and pushing prices higher. Housing has been a bright spot amid weak economic growth for much of this year. Sales totals continue to recover from the Great Recession. Buyers increasingly have pristine credit. But the primary weakness in housing has been a lack of properties for sale. Sales of existing homes slipped 0.9 per cent last month to a seasonally adjusted annual rate of 5.33 million, the second straight monthly decline, the National Association of Realtors said Thursday. (AP)
Sears Could Drag Down Seritage, Its Landlord “For Seritage, relying on the Sears has allowed it to follow in the footsteps of much larger REITs such as Simon Property (SPG) and reimagine what a mall or shopping center should be in the age of digital shopping and cautious consumer spending. But Seritage could find out very quickly that being shackled to the troubled retail icon is not without serious downside.” (The Street)
Former Blockbuster Video Complex Gets Tenants and New Funding “A building that once housed movie rentals is now fully leased as a UPS terminal and an International Paper warehouse. The former Blockbuster Video distribution center near U.S. Highway 75 in McKinney has been owned for more than two years by investor Saskaway Group. The 697,149-square-foot warehouse on Rosebud Boulevard — once used to distribute movies nationwide on videotape and DVD — sat empty and wound up in the hands of the lender before Saskaway Group acquired it.” (Dallas Morning News)
US claims for jobless aid slide to lowest level since July — The number of Americans applying for unemployment benefits fell last week to the lowest level since July, more evidence that U.S. workers are enjoying job security. The Labor Department said Thursday that jobless claims slid by 8,000 to a seasonally adjusted 252,000. That matched the level in mid-July, which was the lowest since April. The less-volatile four-week average fell by 2,250 to 258,500. Weekly claims have come in below 300,000 for 81 straight weeks, longest such streak since 1970. The number of people collecting unemployment benefits is 2.11 million, down nearly 6 per cent from a year ago.
Blame the Banks for All Those Boring Chain Stores Ruining Your City “Not long after he leased out the shell of a once-iconic Phoenix steakhouse, developer Lorenzo Perez got an email from a broker. He learned that the new space, now home to an award-winning restaurant, a small garden store, and an independent bookshop, was worth about $195 a square foot. Nearby retail properties, the broker said, were being valued at 25 percent more. Why the difference? While Perez was courting local businesses, his competitors had landed large corporate tenants.” (Bloomberg)
Albertsons to Expand E-Commerce “Albertsons plans to add click-and-collect and delivery at its Jewel-Osco, Shaw’s, United Supermarkets, Acme Market and Star Market banners using MyWebGrocer’s platform, MyWebGrocer announced. ‘We wanted to offer customers an integrated digital experience that leveraged an experienced provider and would bring our e-commerce offering to market quickly, while still providing a best-in-class user experience,’ Shane Sampson, chief marketing and merchandising officer at Albertsons Co., Boise, Idaho.” (Supermarket News)
ULI Seeks to Rally Real Estate Industry on Climate Change Implications Following Major U.N. Agreement “As world leaders gather at the United Nations this week to ratify the Paris Agreement on climate change, a new paper released by the Urban Land Institute (ULI) argues that real estate owners and investors need to prepare for a host of market implications likely to be accelerated by the major climate change agreement. Entitled L’Accord de Paris: A Potential Game Changer for the Global Real Estate Industry, the paper notes that buildings account for nearly one-third of global climate-changing carbon emissions, more than any other sector.” (CoStar News)
Aeropostale Cuts Rent Deal That Saves 75 More Stores “Things keep getting better for Aeropostale. The new owners of the ailing teen retailer will spare up to 475 stores in the US — an additional 75 stores — as more landlords agree to reduce rents. In an unusual deal, two mall operators — Simon Properties and General Growth Properties — joined licensor Authentic Brands Group in buying the bankrupt chain for $243 million. The new owners announced that 7,000 jobs would be saved as they reorganize the company, including negotiating deals with other mall operators that have Aeropostale as a tenant.” (New York Post)
Q&A with Norman Nichols, KeyBank “KeyBank’s acquisition of First Niagara Bank made headlines this summer, as the $4.1 billion merger created one of the largest banks in the U.S. With the Federal Reserve’s seal of approval this past July, the new company is now determining how it can benefit from each team’s unique experience and geographic diversity, as well as efficiently leverage the firm’s extended product base. Norman Nichols, head of income property and community development lending for Key Bank, exclusively discussed with Commercial Property Executive the next steps to efficiently execute the merger and the challenges of such an integration in today’s capital markets.” (Commercial Property Executive)
AutoZone Earnings Rise as Company Adds Stores “AutoZone Inc. said profit grew 6.4% in the final quarter of its fiscal year as the replacement-part retailer reported higher revenue, propped up by new store openings. Sales at domestic stores open at least a year rose 1% for the Memphis, Tenn., company, which has been working to increase inventory and selection in part by opening so-called mega hub locations and making more frequent deliveries to stores. On Thursday Chief Executive Bill Rhodes said the company's ongoing inventory rollout ‘has gone very well’ and will continue in 2017.” (MarketWatch)
A&E Networks to Open Brooklyn Office—Among the First TV Brands to Take Space in the Borough “A&E Networks has signed a deal to become one of the first major television networks to open an office in Brooklyn. The media company, which owns six brands including Lifetime and the History channel, has signed a lease to take 11,775 square feet at 1000 Dean St. in Crown Heights. The space will be used for its newly launched digital-content agency, 45th & Dean. The firm's name is a play on the new office's location and A&E's Manhattan headquarters and studio space at 235 E. 45th St.” (Crain’s New York Business)
Five Tips for Using Vacant Real Estate for Events “It happens all the time. A brand or company imagines using an empty storefront, a cool lobby, or an unsold piece of real estate in a new or iconic building as a means to make an event unique. However, unlike traditional event venues, these raw spaces create a whole set of new issues for event organizers and marketers. That’s where Space in the Raw comes in. Utilizing vacant real estate to satisfy short-term commitments, Space in the Raw activates properties by offering one-of-a-kind brand experiences.” (BizBash)
Yahoo hack steals personal info from at least 500M accounts — Computer hackers swiped personal information from at least 500 million Yahoo accounts in what is believed to be the biggest digital break-in at an email provider. The massive security breakdown disclosed Thursday poses new headaches for Yahoo CEO Marissa Mayer as she scrambles to close a $4.8 billion sale to Verizon Communication. The breach Thursday dates back to late 2014, raising questions about the checks and balances within Yahoo — a fallen internet star that has been laying off staff to counter a steep drop in revenue during the past eight years. (AP)
Wal-Mart to face class-action over alleged bribery in Mexico — A federal judge has granted class-action status to Wal-Mart investors suing the world’s largest retailer over allegations that it covered up a bribery scheme in Mexico to help its business there. The allegations included that Wal-Mart’s Mexican unit paid millions of dollars in bribes to speed building permits and gain other favors. “Judicial economy and the best interests of the class members favour class certification,” U.S. District Judge Susan Hickey wrote. Randy Hargrove, a spokesman for Bentonville, Arkansas-based Wal-Mart, said the company is considering its options, including an appeal. (AP)
Lennar and WCI join to create powerhouse in Florida — Lennar will spend $643 million to acquire luxury homebuilder WCI Communities Inc., tying up two of the largest home construction companies in Florida as the U.S. real estate market continues to heat up. The deal, for $23.50 per share, marks a 37 per cent premium to WCI’s closing price Wednesday. It will be half in cash and half in Lennar stock. The boards of both companies have approved the deal, which must still get the nod from WCI shareholders. (AP)