Commercial Investment Real Estate September/October 2019 | Page 9

Streaming Video, Physical Assets Becoming a giant in video streaming, Netflix has built its brand on customers seeing little more than its finished product. But the video subscription service has ramped up investment in property and equipment in the last six months. According to CoStar Group, Netflix invested roughly $100 million in the first half of 2019, up from $64.5 million in the first six months of 2018. The company plans to spend $1 billion in Albuquerque, N.M., and $100 million in New York. In all, Netflix listed $452 million in property and equipment assets at the end of June. Vertical Care for Seniors The first vertical medical city for seniors is planned in Orlando, with groundbreaking slated for the end of the year. Ponte Health plans a $1 billion three-tower complex that aims to streamline health care for seniors by providing apartments, medical offices, and research and pharmacology space in one development. Senior Housing News reports that Ponte also plans a smaller complex in downtown Chi- cago and is also scouting other Florida locations. Growth in Office Asking Rates Office markets with the largest short-term growth in average asking rates in 2Q2019: Change from May 2019 Total Market 1Q2019 Listing Rates Vacancy Brooklyn Houston San Francisco Orlando Bay Area (excluding San Francisco) 10.0% 3.8% 3.1% 3.1% 2.7% $54.30 $29.78 $69.43 $22.22 $47.25 9.7% 20.8% 8.1% 11.8% 15.2% Source: Yardi Matrix CIREMAGAZINE.COM September | October 2019 7