Sunday, March 2, 2014

A new look for fashion real estate, and some of the year’s biggest REIT activity

Here are the news stories you might have missed this week:
Kite Realty Group Trust has agreed to acquire Inland Diversified Real Estate Trust Inc. in a move that will double Kite’s shopping-center portfolio to nearly 20 million square feet.  The $1.2 billion acquisition will bring Kite’s shopping center holdings to a total of 131 properties in 26 states, and will give Kite a number of properties in prominent markets, such as Las Vegas, Salt Lake City, and Westchester County.  For more details about this announcement, check out Bloomberg.com.
While many modern companies are decreasing their dependency on brick-and-mortar offices, the fashion industry is on a quest for more space. Apparel companies continue to seek out large retail locales in an effort to expand showrooms.  But not all parties are receiving spacious upgrades.  Many employees are being forced into tight office quarters that are up to 20% smaller than office spaces from just five years ago.  To read more about the recent transformation of the fashion industry real estate sector, visit NYTimes.com.
Last year’s rising interest rates hit agency mortgage REITs hard, and the effects were shown though their falling stock prices.  While agency mortgage REITs, real estate investment trusts that invest in government-backed mortgage bonds, have seen better days, some companies in the sector are taking advantage of these price dips and are buying up competitors’ shares.  Check out WSJ.com to learn more about this trend.
Austin’s office sector is off to a strong start in 2014, with a number of high-profile acquisitions occurring in the first few months of the year.  A New York City company purchased a portfolio of buildings in Northwest Austin, an Austin company acquired the downtown Perry Brooks Building, and a large office complex reportedly changed ownership near the arboretum, just to name a few.  The activity may mean positive growth for the year ahead.  Click over to BizJournals.com for more details on recent deals in the region.
via:http://blog.irr.com/2014/02/14/a-new-look-for-fashion-real-estate-and-some-of-the-years-biggest-reit-activity/

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