Commercial Investment Real Estate May/June 2019 | Page 10

MARKET
TRENDS
Big Box Median Asking Cap Rate
by Region: 4Q2018
5
West
2
6.29%
4
1
Mountain
6.83%
Northeast
7.25%
Midwest
7.40%
3
South
7.06%
Source: The Boulder Group
Hospitality: Speakers
at the Americas Lodg-
ing Investment Summit in
January noted that hotel
groups are beginning to
reduce sub-branding to
cut costs and sharpen their
focus on the customer
experience. GlobeSt.com
reports that hotels with
four or five brands in
the same market seg-
ment have seen revenues
decrease. “If you look at
success of every major
hotel, there was one brand
per segment, and it was
laser-focused on the
demographic,” the Radis-
son Hotel Group’s Ken
Greene told a panel. “There
wasn’t all this blending.”
Multifamily: Now that
coworking has established
itself in the U.S. market,
co-living may be the next
big thing. These spaces
are smaller than traditional
apartments and share
kitchens, bathrooms, and
other common areas. One
high-rise apartment building
in Queens, New York, oper-
ates 169 co-living suites
out of 466 apartments. The
CEO of the company man-
aging the apartments told
the National Real Estate
Investor that 73 percent
of the units are occupied
with leases from $1,260 to
$2,200 per month.
Mixed-Use: Developers
of mixed-use projects are
taking note of the rising
8
May | June 2019
popularity of food halls.
The halls — most com-
monly developed in urban
markets — are collections
of local, specialized restau-
rants under one roof. The
restaurants feature a vari-
ety of cuisines, including
ethnic, local, and healthy-
eating choices. There are
currently about 180 in the
U.S., says Northeast Real
Estate Business, citing
Cushman & Wakefield sta-
tistics, but there could be
more than 300 by the end
of next year. Developments
with halls also can attract
office and retail tenants,
as well as foot traffic from
nearby offices. “When it
connects right, a food hall
can transform a project,”
one CRE executive said.
COMMERCIAL INVESTMENT REAL ESTATE
Briefly Noted