Strength in real estate stocks may signal a rise in mergers and acquisitions. The Commercial Observer makes the case that 2014 may be a strong year for mergers and acquisitions for real estate companies. Look to giants like CBRE - who looks to increase its 2013 spree of $545 million in acquisitions - and Jones Lang LaSalle to be on the lookout for attractive deals . Contributing factors include the S&P’s lack luster performance (down .7% since January 1), while CBRE (up 4.3%) and JLL (up 18.3%) are performing far better than the rest of the market and appear to be cash rich. Read the article here.
Googletown now has an airport?! We have reported previously that corporate commercial real estate will see big changes in 2014, but who expected Google’s CRE team to buy their very own airport? The Verge posted an interactive article that highlights Google’s leap into real estate. It starts with their 1999 office in a small office park, Google has become Mountain View California’s largest employer and now owns over 10% of taxable property. Read more about Google’s (interesting) approach to commercial real estate here.
Analysts are projecting institutional lenders could be putting up record amounts of capital in 2014. NAREIT reports optimistic forecasts for commercial real estate lending due to strong portfolio performances, disciplined underwriting standards and improved growth in real estate values, construction, industrial production and consumer sentiment. The article includes information from JLL, Mortgage Bankers Association and Trepp. Read the full article here.
Bond market fuels surge in commercial property lending. Chicago lenders that package real estate debt into commercial mortgage backed securities originated and sold off $2.48 billion in loans in 2013 – more than double from 2012. Amid rising occupancies, rents and property values more bond investors are willing to buy CMBS debt. Nationally, CMBS lending rose 85 percent last year, to $82.23 billion, according to Trepp. Read the full article here.
And in conclusion:
Redfin launches its technology powered real estate brokerage in the Twin Cities. The tech-focused Redfin differentiates from other brokerages because it uniquely aligns agent and customer interests through innovative technology. Redfin agents are paid via salary and benefits and customer satisfaction ratings — not transactions — determining each agent’s bonuses. Redfin’s unique tech offerings include:
- Home Value Tool: Enables customers to estimate the value of their home based on up-to-date home sale prices, details and photos used by real estate agents.
- Offer Insights: Publishes real-time statistics and notes from Redfin agents about their home offers to help homebuyers understand what it takes to win a bidding war in a given neighborhood.
- Tour Insights: Comments left by Redfin agents about homes they have seen in person.
- Deal Room: Helps agents and their clients coordinate and track the tasks that need to be completed to successfully close the home purchase transaction.
- Listing Dashboard: Allows home sellers to track online and in-person traffic to their listing compared with that of nearby comparable homes for sale.
Learn more about Redfin here.
See you next week.