Investors appear to be pulling back from real estate in Brooklyn, with TerraCRG data showing that the dollar volume of commercial property sales fell to $5.1 billion last year -- a decline of 30%. A downturn in the market for rental-apartment properties was a major contributor to the decline.
The Philippines Securities and Exchange Commission is seeking to attract REIT listings through a recent move to ease tax and ownership rules. Ayala Land wants to raise $500 million once the new rules are in place.
Blackstone CEO Steve Schwarzman says there are now fewer buying opportunities because of the price appreciation that assets have experienced. "Everything is up. You have to see something reasonably remarkable in terms of your ability to improve the operations of a company," he says.
The flow of capital into real estate private equity funds has declined, with just $18 billion worth of real estate funds closing during the fourth quarter. That is the lowest three-month tally since Q1 of 2013, according to Preqin.
Nareit's 2020 Economic Outlook
Nareit Economist Calvin Schnure says the 2020 outlook is positive, as a wide range of indicators from GDP, labor markets, housing markets, and commercial real estate are consistent with continued economic growth and improving real estate markets and REIT earnings in 2020. Read the outlook.
Gladstone Land Corp. has acquired 1,324 acres in Holyoke, Colo., for $7.5 million. The deal "increases the number of regions where we own farms and the number of different crop types grown on our farms, and it also adds a new operator to the number of tenants on our farms," says Gladstone CEO David Gladstone.
Lawmakers in various cities and states are seeking to offer alternatives to would-be renters who are unable to make all-cash security deposits. In some cases, these plans involve allowing renters to make payments in installments or take out insurance policies.
The world's economy grew by 2.9% last year, the slowest pace since the global financial crisis, and a variety of risks are creating uncertainty about its next moves, according to International Monetary Fund Managing Director Kristalina Georgieva. "We have not reached a turning point yet," she said.
REITs perform well when the economy is growing and vacancy rates are low. This was the case in 2019, and the outlook for 2020 remains favorable. Download the Nareit 2020 REIT Outlook report to learn more.