Bite Size Breaking News
Welcome to Bite Size Breaking News. We post every other Monday by noon. Have lunch with The Sinreich Group and get the latest real estate news in easily digestible “bite size” portions.
The Sharing Economy Impacts on Real Estate
The sharing economy has had a significant impact on the way real estate is used, managed, purchased, sold, leased and financed. From Airbnb to Uber, from co-working to co-living, from pop-up hotels to pop-up stores, from crowd funding to crowd sourcing, there seems to be no limit to the myriad ways in which tradition has been and will continue to be upended. To illustrate this point, consider the following: WeWork is now the largest private sector office tenant in NYC with over 7M square feet and a market valuation of $47B. Airbnb has over 150M users and is active in over 190 countries.
Employers Enter the Housing Market
Much has been said about the shortage of affordable housing at all income levels throughout the U.S. In the Bay Area alone, 750,000 new jobs have been created since 2008 and only 130,000 new housing units have been developed. This has prompted employers ranging from Microsoft and Kaiser Permanente, to the Aspen Skiing Company and the independent lettuce grower Tanimura & Antle, based in Salinas California, to take matters into their own hands. Solutions range from Microsoft's pledge to invest $500M in middle and low income housing in the Seattle area to Tanimura & Antle's development of an affordable employee-only facility that houses hundreds of its seasonal workers. Learn more
Amazon Expands Brick-and-Mortar Retail Footprint
In addition to its brick-and-mortar bookstores, 4-Star stores, cashier-less convenience stores, and Whole Foods, Amazon announced that it will open a new supermarket chain with dozens of grocery stores in several major U.S. cities, including San Francisco, Seattle, Chicago, Philadelphia and Washington, D.C. The first of these grocery stores is scheduled to open in Los Angeles before the end of the year. Once seen as a threat to retail landlords, Amazon is now a source of credit-worthy, stable retail tenants. Learn more
Transforming Industrial Into Mixed Use
An 80-acre former industrial park in suburban Atlanta is being transformed into one of the city's largest mixed-use communities. The multi-year, multi-phase master plan includes 350,000 square feet of retail, 500,000 square feet of office space, 500 homes, 200 hotel rooms and 13 acres of open space. The site's owner purchased the first parcel of land at the site over 70 years ago to house 3 industrial tenants, but realized a decade ago that the area was ripe for redevelopment into a live-work-play community. Learn more
Co-Living in New York City
Please join Ellen Sinreich and ULI NY for a panel discussion on the new models of co-living that companies are providing in New York City. This program will focus on different approaches that co-living providers are offering in terms of physical structure, social programming, amenities and technology. Panelists will discuss what does and doesn’t work, how these projects are being financed and deal structures. Learn more