MACY ’ S PLANS $ 235M SKYSCRAPER DEVELOPMENT ATOP FLAGSHIP STORE |
SUPPLY , RENTS BOTH RUNNING STRONG IN INDUSTRIAL PIPELINE |
CASINOS HIT THE JACKPOT AS ECONOMY REOPENS |
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This page , left to right : Irina Chayko , Noam Galai , Happycreator Kong-Im / EyeEm , Nancy C . Ross |
Adaptive reuse is a concept many see as a potential solution for mismatched supply and demand . A May report from the National Association of REALTORS ® cited 187 hotel-to-multifamily conversion projects by survey respondents . Of those , 57.2 percent were to traditional multifamily housing , followed by seniors / assisted-living housing ( 11.2 percent ), student housing ( 7.5 percent ), and temporary shelter housing ( 6.4 percent ).
The survey also highlighted specific findings in the hotel / motel properties :
• 55 percent of projects required an application for rezoning .
• Most properties were not extended stay with kitchen facilities ( 79 percent ).
• 47 percent of properties cost between $ 25,000 to $ 50,000 per room for full conversion .
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After a year of rough headlines for stalwart retailers like J . C . Penney , Sears , and the like , Macy ’ s made an announcement that showed all is not lost for legacy brands . The New Yorkbased company unveiled plans to build a skyscraper above its Manhattan flagship store that will be a part of a $ 235 million investment in the immediate neighborhood . While particulars of the development are subject to city approval , Macy ’ s aims to create 1.5 million sf of office space in a building that could top 75 stories .
In addition to office and retail spaces , the development aims to create a car-free pedestrian space with increased access to bus and train stations . Plans also include improving elevators and gateway entrances to the area . The Macy ’ s store at the site , with more than 1.25 million square feet of retail space , will remain open throughout construction .
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The industrial market looks to keep rolling through 2021 after being the success story of CRE during the pandemic . National rents have increased an average of 4.4 percent , up to $ 6.53 per sf , in the past 12 months leading up to March 2021 , according to a Yardi Matrix outlook . Supply appears to be in line with healthy demand , with 367.8 million sf of industrial property under construction . Completions are forecasted to top 250 million sf , slightly above 2019 ’ s total .
Rent increases were most significant in or adjacent to port areas , with California ’ s Inland Empire ( 8.2 percent ), Los Angeles ( 6.9 percent ), and Seattle ( 6 percent ) topping that list . Nashville , Tenn ., also posted a strong year of rent growth at 6.6 percent . Vacancies remained steady at 6.1 percent compared to March 2020 . Strong vacancy and rent growth figures , according to Yardi , show how new space has easily been absorbed even as 10 percent of all stock has reached the market since 2016 .
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The casino business has long been synonymous with the customer perks it offered to lure business in a competitive market . Whether it be a complimentary suite at a swanky Las Vegas resort or a free buffet at a suburban casino , these incentives , the thinking went , helped build customer loyalty and keep folks coming back .
But surging demand has casinos raking in profits . Meanwhile , operators have learned to decrease costs on labor , amenities , and freebies . According to Bloomberg , Penn National Gaming Inc . reported a 77 percent increase in 1Q2021 profits in May compared to 2020 . Its Margaritaville Resort Casino in Bossier City , La ., tripled its year-over-year income in March 2020 , jumping to $ 19.7 million from $ 6.5 million a year earlier . The month-to-month increase was 52 percent .
While it remains to be seen if this is a short-term bump or a lasting trend , market experts are hopeful a more carefree U . S . population could lead to another Roaring ‘ 20s .
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