In the News—Week of October 18 2021
Around the Nation
U.S. commercial real estate looks like it is bouncing back, ULI says
World Property Journal reports that commercial real estate is beginning to normalize, according to Urban Land Institute’s semiannual real estate forecast. ULI bases its forecasts on a consensus of 40 economists and industry analysts. “The U.S. economy remains relatively attractive for real estate, especially in contrast with the period immediately following the global economic downturn in 2008/9,” said Ed Walter, ULI Global CEO. “While prolonged high inflation could damage the viability of pipeline projects, the short-term spike predicted should have less impact. This is why we see transaction volumes recovering so quickly and investment returns for core property types looking so healthy. The real estate sector is in a strong position to build its way out of the pandemic and take the economy with it.”
Energy & Environment
Court in Norway rules against major windmill complex
Norway’s top court ruled against two wind farms in the country’s Fosen peninsula, Agence France-Presse reports via Euro News. The court said the wind turbines encroached on the rights of Sámi reindeer herders. The herders sued to protect the land for the reindeers to graze. Roan and Storheia wind farms are part of Europe’s largest onshore wind energy project and were completed in 2020. Lawyers for the plaintiffs say about 150 windmills will be dismantled in the wake of the ruling.
Former Rockets great Olajuwon has become a successful real estate investor
Hakeem Olajuwon, who led the Houston Rockets to two NBA titles in the 1990s, began dabbling in real estate late in his playing career and now has a net worth of more than $300 million, Celebrity Net Worth reports. Olajuwon is Muslim and his religion forbids him from paying interest on loans. “I have been blessed thus far to be able to work with my own capital, which gives me the ability to decide when I want to sell as opposed to having a bank loan hanging over my head that in some cases can force you to sell even though you may not be ready to,” he told The New York Times. He owns parking garages, multifamily complexes, commercial buildings and single-family homes in the Houston area.
Developer plans luxury apartment tower next to just-completed hotel
Alamo Manhattan, which just finished the Marriott Dallas Uptown, wants to build a 25-story luxury apartment building next to it, according to The Dallas Morning News. The apartment tower would be built on the site of two small office buildings at Fairmount and Carlisle streets. Alamo Manhattan is headquartered in one of those two buildings, which would be demolished. “We are looking to develop a high-rise, mixed-use tower with a focus on the pedestrian,” CEO Matt Segrest says. “We intend to extend the street experience we’ve created with the hotel.”
Iconic Tower Plaza shopping center sells for $7.2 million
Tower Plaza at 40th Street and Thomas Road in Phoenix, one of the oldest regional shopping centers in the Valley, sold for $7.2 million, AZ Big Media reports. The seven-tenant, 44,884-square-foot center is completely leased. The center was built in 1955 and was designed by Ralph B. Haver, whose mid-century modern designs played an important role in the look of Phoenix in the years following World War II. Tower Plaza got its name from two broadcast towers, one for radio and one for TV, that were erected on the site.
Demand for real estate rises in Quintana Roo, report says
Demand for real estate in the state of Quintana Roo rocketed in the first four months of 2021, Rivera Maya News reports. The demand in the state rose 89% year-over-year, figures from Lamudi show. “Investing in land is highly profitable since over time its value always increases, and in the case of the most exclusive destinations in Mexico, the profit, in the end, can be excellent,” explains Daniel Narváez, marketing vice president of Lamudi. Quintana Roo is home to several leading destination cities — Cozumel, Tulum, Cancun and Playa del Carmen.