Commercial Investment Real Estate

JUL-AUG 2017

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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COMMERCIAL INVESTMENT REAL ESTATE 42 July | August 2017 New York City's Big Deal Brooklyn's renaissance in housing and multifamily is starting to spill over into offi ce properties. Tishman Speyer will construct a 620,000-sf offi ce tower on top of a Macy's store in New York City's biggest borough. The $500 million project will integrate the top four stories of a vintage 1930 Macy's store with new amenities-rich construc- tion to create a 10-story building, which will be ready for tenants by mid-2019. This new development is part of a surge in specula- tive offi ce buildings in Brooklyn, according to The New York Times. The building will offer high-quality offi ce space at a lower cost per square foot than Manhattan, and is close to transportation and many talented professionals. Currently, downtown Brooklyn has 17 msf of offi ce space with new offi ce construction expected to add 2 msf to 3 msf more. The offi ce vacancy rate is a tight 3.1 percent. REGIONAL O U T L O O K { M I D - A T L A N T I C } ventdusud/Thinkstock Manuel-F-O/Thinkstock Rawpixel/Thinkstock { M I D W E S T } Courting Recent College Grads in Chicago Student Housing { S O U T H W E S T A N D W E S T } Grocery Shopping Trends A joint venture, including the Scion Group, purchased a 580-bed student housing complex near DePaul University in Chicago. The joint venture plans to market the property to recent graduates and medical residents who enjoy the communal living and lower costs of their college years, according to Crain's Chicago Business. It's a low-cost alternative for recent grads who don't make enough money to afford their own place and will help to fi ll the current 10- to 15-percent vacancy in the building. Of the 440 grocery stores opened in the U.S. during 2016, 27 percent opened in the states of Texas and California, according to JLL's Grocery Tracker. Aldi and Grocery Outlet dominated Cali- fornia, while Kroger and H-E-B moved into Texas. Overall, Aldi and Whole Foods opened the greatest numbers of stores. JLL notes three trends transforming grocery shopping. 1. Rise of the grocerant, which combines a restaurant and grocery hybrid store, with prepared food sections. 2. Technology gives back time. Grocery stores are starting to offer online ordering with in-store pickups, and a new scan- and-go app tallies purchases as customers shop. 3. Everyone's a personal chef. Blue Apron, Plated, and Hello Fresh provide consumers with meal kits delivered to their doors to make their own dinners.

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