In the News—Week of March 14, 2022
National
Housing Market might create obstacles for getting workers back in office
The bosses would like the workers to come back to the office. The workers would like to continue to work from home. Besides the obvious convenience, Time magazine reports, there is another obstacle. The workers may have relocated in the past two years. And with prices of homes, they may not be able to live anywhere near the central business district of a major city. The magazine cited a woman who had taken a job in Dallas but lived 30 miles away in Wylie, Texas. When the company now wanted her in the office, she commuted three days before quitting. Home prices have risen 30%, rents 16% and gasoline is up 78% over the past two years
Energy & Efficiency
No-cost and low-cost upgrades can give landlords ROI quickly
Multifamily landlords might feel under the gun from New York City’s green laws. But there are some steps that are relatively painless and pay off surprisingly well, The Real Deal reports. Among these are low-flow showerheads and faucet aerators, maintaining radiator steam traps, programmable thermostats, boiler reset controls and weatherization.
Texas
Houston-based Hines suspends new investments in Putin’s Russia
Houston real estate developer Hines is calling off any new investments in Russia, the Houston Chronicle reports. Hines joins a growing number of companies trying to limit involvement in the country after it invaded Ukraine. “We do, however, have commitments made to our investors, partners, tenants and lenders, and we are in discussions with them to determine the best path forward. Our employees in the region are safe, our assets are operational, and we are continuing to monitor the situation as it progresses,” the company said in a statement. Hines has a little less than 2% of its worldwide $160 million investments in Russia.
Texas
Trammel Crow skyscraper in Dallas goes for $600 million
A California investment firm bought the 50-story Trammell Crow Center in downtown Dallas for more than $600 million, The Dallas Morning News reported. That ranks only behind the Crescent complex in uptown that sold for almost $700 million. Regent Properties acquired the 37-year-old building from JPMorgan Asset Management, which had spent $180 million sprucing up the tower.
Arizona
Self-storage market in Arizona continues to thrive
Some business sectors in Arizona have struggled in the past two years but the self-storage market has continued to thrive, AZ Big Media reports. “This is not the first time that the self-storage industry has shown exceptional strength in a downturn,” Marcus & Millichap Real Estate Investment Service’s John Chang says. “During the Great Recession, self-storage outperformed other types of real estate. More capital is coming into self-storage as major institutions see it performing well when things are not going well in the economy. This has also been true during good times.”
Mexico
Technology may be disrupter in commercial real estate industry
The commercial real estate industry in Mexico has changed a lot in the past decade, Mexico Business News reports. Not so long ago, the industry was dominated by family businesses, but it has evolved into sophisticated companies. Still the process of closing the transaction is often slow and inefficient. Tech startups such as Homer and True home have entered the country’s residential real estate market. CRE in Mexico is ripe for technology that can streamline transactions.
