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
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