GDP has been growing for eight straight years, gas prices are low, unemployment is under five percent, and the last 18 months have been excellent years for wage growth. And with all that retail is still struggling. There have been nine retail bankruptcies in 2017 and more than 100 store closures. The Atlantic pinpointed three reasons for the decline: 1) Amazon is eating retail. Between 2010 and last year, Amazon’s sales in North America quintupled from $16 billion to $80 billion, which means Amazon has grown by three Sears. 2) America built way too many malls. The number of malls in the U.S. grew more than twice as fast as the population between 1970 and 2015. 3) Consumers are spending their money on experiences rather than things. Spending on clothes is down but travel and hotel occupancy are booming. Domestic airlines have flown more passengers each year since 2010, and last year U.S. airlines set a record. Since 2005, sales at “food services and drinking places” have grown twice as fast as all other retail spending, showing us that time spent traveling and dining with friends is currently more important than a logo t-shirt.
Since its founding in 2008, Airbnb has been disrupting the hotel industry. But, with Singapore-based MetroResidence’s recent $2.8 million funding from Rakuten, Airbnb may be seeing some disruption. MetroRedicence is focusing on business travel, competing with “Airbnb business travel.” Lester Kang, MetroRedicence Co-founder, explained, “They [Airbnb] are getting serious with business-ready apartment program. But with large corporates, you can’t tell your guests to go, "pick up the key from under the flowerpot.”
A recent survey by Buildout showed that 80 percent of commercial real estate brokers are men. But, over the past decade, women have played a huge role in streamlining how CRE conducts business, and the industry has started to buck the perception of just a “boys club.” This week, Real Estate Tech News and Commercial Real Estate Women (CREW) Network released their list of Women in Real Estate: Leading Technology Executives. I have to congratulate Capstak’s Director, Global Business Development, Ashley Young, for being second on the list.
Frequently, we hear that the commercial real estate industry doesn’t adopt technology. I would put a caveat on that statement – the commercial real estate industry doesn’t adopt technology, for the sake of technology. Have you met a broker without a smartphone? This article highlights how the industry will continue to benefit from the efficiencies of technology, especially around the collection of real-time data. I agree, data is going to allow investors and developers to make better decisions when buying and building assets.
Governments own and lease significant assets. Among the largest leases is a 2.4M SF lease at 600 Dulany St. in Alexandria, Va., by the U.S. Patent and Trademark Office, which pays an annual rent of more than $72M. But, right now governments need to raise capital to pay their pension funds so they are starting to sell off assets instead of building them. Capstak’s partnership with PublicAssets is exposing tens of thousands of formerly hidden opportunities to lease, dispose, and acquire property will get exposure to local and national markets. Leveraging Capstak’s Haves & Wants proprietary technology, tens of thousands of formerly hidden opportunities to lease, dispose and acquire property will get exposure to local and national markets.