Commercial Investment Real Estate March/April 2019 | Page 10

MARKET
TRENDS
Low Delinquency Rates
Delinquency rates for commercial and multifamily mortgage loans were
low for 3Q2018 compared to 2Q2018.
Banks and thrifts
0.48%
▼ 0.02 % points
(90 days or more delinquent or in non-accrual)
Life company portfolios
0.04%
▼ 0.01 % points
(60 days or more delinquent)
0.07%
▼ 0.03 % points
Freddie Mac 0.01%
(60 days or more delinquent)
Commercial mortgage-backed securities
(30 days or more delinquent or in REO)
3.05%
▼ 0.47 % points
Fannie Mae
(60 days or more delinquent)
Source: Mortgage Bankers Association, Commercial/Multifamily Delinquency Report
Briefly Noted
Hospitality: In a business that
showcases the great outdoors, ski
resorts are turning their attention
to sustainability. Yardi reports that
more than 75 percent of U.S. ski
resorts — almost 200 locations —
have endorsed Sustainable Slopes,
an environmental charter from the
National Ski Areas Association.
The project includes principles
for ski area planning, operations,
and outreach. It focuses on areas
such as water conservation, energy
efficiency, waste reduction, and
recycling. can be difficult, and environmental
cleanup can be expensive and
physically risky.
Industrial: As demand heats up
for last-mile e-commerce fulfillment
centers in urban areas, investors are
repurposing other types of buildings
for this use. National Real Estate
Investor reports that empty grocery
stores, class-B office buildings, and
former bank branch buildings are
among the candidates for adaptive
reuse — as well as failed big-box
retailers located in transitional urban
neighborhoods. Zoning issues Office: Tourists in northern
California have discovered
new attractions: tech company
headquarters. Visitors to Googleplex
in Mountain View can roam the
12-acre grounds, according to
Bisnow, but aren’t allowed into
buildings unless accompanied by
a Google employee. Apple Park in
Cupertino offers a visitor center
that includes an Apple Store, but
its campus also is mostly closed
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March | April 2019
Multifamily: New American
apartments are shrinking. The
average size of new apartments
in the U.S in 2018 was 941 sf, 52
sf smaller than an apartment built
in 2008, Rent Cafe reports. The
average size of all apartments — new
and older — is 882 sf. Seattle’s are
the smallest in the country, with an
average of 711 sf; Florida boasts the
largest, with an average of 1,038 sf.
to visitors. More welcoming: the
observation deck at the top of
Salesforce Tower, the tallest building
in San Francisco. Visitors are allowed
free entrance to take in the views
from the building’s 61st floor.
Retail: Those looking to follow
where big-box retailing is headed
may want to keep an eye on IKEA.
The Swedish home goods retailer is
opening 30 city-center stores around
the world in the next two years,
including a New York location slated
to open this spring and four others
in the U.S. The urban stores will be
considerably smaller than IKEA’s
300,000-sf suburban megastores;
the Manhattan store will be 17,500 sf
and will feature items only available
for delivery. “IKEA is very conscious
that they have to make more effort to
be where people want them to be,”
Neil Saunders, managing director of
GlobalData Retail, told CNN. “The
old big-store model was very ‘build
it and they will come.’ But that no
longer applies.”
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