Commercial Investment Real Estate September/October 2019 | Page 10

MARKET
TRENDS
Apartment Demand High in 2Q
Quarterly Demand
(in units) Quarterly Completions
(in units)
10,443 6,441
Chicago 7,418 2,617
Houston 6,969 2,373
New York 6,759 2,768
Washington, D.C. 6,008 2,787
Metro Area
Dallas-Fort Worth
Demand for apartments in the U.S. reached a five-year high in 2Q2019,
according to real estate technology and analytics firm RealPage.
Net move-in during the quarter totaled 155,515 units, which exceeded
2Q2018 product absorption by 11 percent.
Entertainment: The popularity of
esports has generated the develop-
ment of — what else? — esports
arenas. The New York Times reports
on the rise of posh new venues
devoted entirely to e-gaming. They
include a $10 million stadium in
Arlington, Texas; a 30,000-sf reno-
vated nightclub in Las Vegas; and
the planned 3,500-seat Fusion Arena
in Philadelphia, which will include a
training facility, production studio,
and private suites.
Retail: J.C. Penney has had its
share of problems in recent years,
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September | October 2019
with its stock now trading for less
than $1, risking possible delisting
from the New York Stock Exchange.
As the American stalwart in the
retail space hopes to stay afloat,
it has contacted lawyers and
consultants about restructuring its
debt. Company executives aim to
avoid bankruptcy while closing
24 stores in 2019.
Seniors Housing: The seniors
housing industry might look to
millennials to scope out ideas
about catering to baby boomers
as they age. Jane Adler, writing on
the National Investment Center for
Seniors Housing & Care’s blog, notes
that the two generations have a lot
in common. They tend to seek out
experiences rather than accumulate
possessions, making them potential
candidates for small apartments in
vibrant urban areas with plenty of
conveniences. They’re also both
interested in multigenerational
communities, with Alder floating the
idea that boomers could even be
open to co-living developments.
Briefly Noted
Student Housing: Developers and
college administrators are discover-
ing that flashier might not always be
better when it comes to building new
student housing. In the amenities
war, notes Bisnow, big-ticket trophy
features — one complex boasted a
skiing simulator, for instance — are
valued less than features such as
additional study rooms, confer-
ence rooms where groups can plan
presentations, open spaces where
students can socialize or host events,
and fitness facilities that encourage
wellness. Economics is a factor, too;
parents may be more reluctant to pay
for all the bells and whistles when
lower-priced options are available.
COMMERCIAL INVESTMENT REAL ESTATE