Honolulu, Baltimore, Boston and Miami were named the most-difficult markets for new apartment construction, according to the latest Barriers to Apartment Construction Index released by National Apartment Association (NAA) and National Multifamily Housing Council (NMHC). On the other hand, New Orleans was found to show the most-supportive conditions for building new apartments. Midwest and South cities ranked highly in the list assessing ease of build – Rock, Kansas City, Indianapolis and St. Louis rounded out the top five, followed by four Texas cities. In addition to rising hard costs on land and labor expense, NMHC Chairman Bobb DeWitt said apartment construction is being severely hindered in some markets at the local level by “regulatory barriers.” Consequently, apartment construction in certain markets has become more expensive and less appealing to investors. Dewitt cites as an example “outdated zoning laws, unnecessary land use restrictions, arbitrary permitting requirements, inflated parking requirements and environmental site assessments.” (Via CoStar News)
Bed Bath & Beyond has told investors it is actively renegotiating lease terms with landlords, and could close up to 100 stores in the next few years. The home accessories retailer experienced a 2% drop in same-store sales in the fiscal 2017 first quarter, compared to .5% for the same period decline last year. However, its digital sales grew 20%. (Via Retail Dive)
Kayne Real Estate Advisors has partnered with Batson-Cooke Development Co. to bring a $54 million, 627-bed student housing development to nearby University of Florida. The 216,540 square feet low-rise will offer apartments sized from one to four bedrooms, each with separate bathroom and in-unit washer/dryer. Estimated completion is slated for summer 2018. PNC Bank financed the project’s construction. (Via MultiHousing News)
More News to Note:
NY Fed President Says More Aggressive Rate Hikes Not Off the Table
Real-Estate Technology Sector Expects More M&As
West Coast JV Fund Starts with Portland Warehouse-to-Creative Office Conversion
New York City Hospitals Plan to Cut Rehab Costs Through Modular Construction
