Retail’s current (and long-coming) metamorphosis is rather rife with opportunity, retail real estate experts say. GGP and other large mall REITs, such as Simon, PREIT and Macerich, have already invested hundreds of millions into renovating, retenanting and reinvigorating their properties. While speaking at NAREIT’s 2017 REIT Week on Wednesday, GGP CEO Sandeep Mathrani said the REIT had already redeveloped 115 anchor store spaces at its mall and plans to buy 100 more in the coming years for the same purpose. “What we have done is, the mall has really become the department store,” Mathrani sai. “We’ve done this 115 times. We have a pretty good idea that it actually works.” (Via Reuters)
European fintech startup BrickCoin has announced its concept to launch a new cryptocurrency that is backed by REIT investments. BrickCoin says the cryptocurrency, backed by commercial real estate, would hold better value than fiat money; it describes its cryptocurrency as “a savings scheme backed by a non-inflationary asset, commercial debt-free real estate, to deliver stable capital preservation.” The company contends “FIAT currencies are a financial illusion managed by central banks, tricking savers into believing they are accumulating wealth when in fact the value of their money is continually decreasing thanks to inflation.” (Via Business Insider)
Ten-x Chief Economist Peter Muoio gave his assessment on commercial real estate markets for 2017, and despite an overall positive outlook, some sectors show issues worth watching. Apartment oversupply in select markets could complicate the multifamily cycle, and office is still bifurcating in performance. In office, for example, the West coast is booming, but the Midwest putters along.“Not a lot of supply, but they’re still sort of stuck in time,” Muoio reportedly said of the Chicago office sector. The industrial sector is seeing a bout of new demand for space to fill the needs of distribution and logistics, cloud computing and medical marijuana industries. Retail will continue to rightsize, but could see some bolster in demand from medical walk-in clinics, or “medical retail,” should federal healthcare spending lessen, Muoio said. (Via The Business Journals)
More News to Note:
CMBS Issuance Volume Appears to be Recovering
Bebe Sells Property, Takes Debt to Close Out Existing Retail Store Leases