In the News—Week of July 19 2021
Around the Nation
Rent for large warehouses up 13% over the past year
Rents for large warehouses rose a whopping 13.2% year-over-year as the industrial market continues to boom, The Real Deal reports. Figures from CBRE show first-year base rents on leases of a year or more rose by 9.7%. Rents have gone up even faster in coastal areas near or in major metros, such as northern New Jersey (up 33%), the Inland Empire of Southern California (24%), and Philadelphia (20%). Almost 100 million square feet of industrial space was absorbed nationally in the first quarter, and 376 million square feet of warehouse space is under construction.
Energy & Environment
El Paso Electric earns Energy Star Market Leader Award
El Paso Electric announced that the utility has received the 2021 Energy Star Market Leader Award for its efforts to promote and support energy-efficient construction, the El Paso Post-Herald reports. The utility was able to contribute to 394 Energy Star certified homes in 2020 through energy efficiency programs. El Paso Electric says that is the equivalent to reducing CO2 emissions by 315 metric tons. “Becoming a homeowner in our community is a landmark moment in one’s lifetime, so it is an honor to be part of the histories of 394 families as we each do our part to improve the quality of life and standard built into our homes in a sustainable and energy efficient manner,” the company’s director of energy efficiency and commercial services, Susanne Stone, says.
Driftwood Capital buys Hotel Indigo Houston at the Galleria
Driftwood Capital, an investment fund specializing in hospitality properties, has acquired the Hotel Indigo Houston at the Galleria, Hospitality Net reports. The hotel features over 3,000 square feet of meeting space, four meeting rooms, a fitness center and an on-site restaurant. Hotel Indigo Houston was built in 2001 and underwent a renovation n 2009. The property will be open for syndication beginning on Sept. 1 with a minimum investment of $50,000. “The hotel is well-situated in one of the largest business districts in the nation and nearby the Galleria Mall, Texas’ largest shopping mall, providing multiple demand drivers for a hospitality asset that meets the needs of this cosmopolitan neighborhood,” Driftwood Capital’s CEO, Carlos J. Rodriguez Sr., says.
Developer plans 42-story tower with office, hotel rooms in downtown Dallas
Developers are throwing around plans to build the next office tower in downtown Dallas, The Dallas Morning News reports. Scott Rohrman thinks his will be the next one built. The developer and investor plans for a 42-story, mixed-use project on the east side of downtown. His proposed tower would consist of around 200,000 square feet of office, 225 hotel rooms with retail on the ground level. “We are not going to go build it speculative-basis,” Rohrman said. “But we are going to put our name in the hat for office users.”
Index indicates Phoenix is one of the hottest real estate markets
Phoenix is considered one of the hottest spots in the country right now. Of course, that is hardly a surprise in July. But this has to do with the real estate market, not the weather. The Newmark Opportunity Index ranks the Phoenix area’s real estate market fourth overall, AZ Big Media reports. Phoenix ranked first overall in hospitality metrics, third overall in multifamily metrics, and fourth overall when looking at the local economy.
Industrial real estate expected to continue going strong
Mexico’s demand for industrial space remained strong in the first five months of the year, reports Mexico Business News. First-quarter leasing totaled 1.2 million square meters, and a little more than 800,000 square meters were leased in April and May, figures from Solili show. Mexico City led the way, accounting for 21% of the demand. Monterrey and Tijuana were next. The industrial real estate market has benefitted from shifts in the economy in the wake of the pandemic.