Weekend Reading for the Commercial Real Estate Industry - February 7, 2020
Written by Brent Carnduff | February 7, 2020
Happy Friday! With the Super Bowl behind us (congratulations Kansas City) and Punxsutawney Phil predicting an early spring, this is what we're focused on this weekend:
- Phoenix is tops in small business growth
- Most desired QSR net lease restaurants
- Changes in office design in 2020
- Sephora expanding in 2020
- ClassPass not fit for studios
Phoenix Bumps Dallas from Top Spot for Small Business Hiring Growth by Richard Lawson on CoStar
Jobs and wage growth among key factors real estate investors consider for deals.
Which are the Most Desired Quick Service Restaurants in the Net Lease Sector? by Liz Wolf on National Real Estate Investor
Thanks to the swelling investor demand, QSR cap rates dropped to an average of 5.39 percent in the second quarter of 2019, down from 5.5 percent one year ago. The primary QSR investors continue to be private 1031 exchangers who are selling their more management-intensive real estate, like multifamily assets, and trading into passive net lease investments.
Trends in Office Design that Will Change the Way We Work in 2020 by Jennifer Liu on CNBC
Technology has dramatically changed where, when and how people work. Another contributing factor that isn’t as sexy but is arguably just as influential for the working world: the rising price of commercial real estate. As a result, flexible and co-working spaces are now the fastest-growing type of office space in commercial real estate.
Sephora to Open 100 New Stores in 2020, in Bid to Grow Outside of the Mall by Lauren Thomas on CNBC
This marks its largest real estate expansion to date, more than doubling its store growth in 2019. And the focus, with this growth, will be on expanding outside of shopping malls.
ClassPass is Squeezing Studios to the Point of Death by Maxwell Strachan on Vice
On the way to its billion-dollar valuation, ClassPass had long depended on fitness studios like The Pad and Yoga Vida, which accepted ClassPass students into their classes a few times a month at rates far below what they asked of their direct customers. In exchange, the company offered studios free marketing, a few extra customers, and the hope that the ClassPass students might eventually convert to full-paying direct members.
For a while, the deal worked well enough: Subscribers got great deals on fitness classes, studios got new potential customers, and ClassPass grew tremendously. But with an IPO in the fitness company’s sights, many of the same studio owners who helped ClassPass grow into a vaunted unicorn are now panicking about changes to the ClassPass system that they say threaten their very existence.
Read Past Editions
Weekend Reading for the Commercial Real Estate Industry - January 31, 2020
Weekend Reading for the Commercial Real Estate Industry - January 24, 2020
Weekend Reading for the Commercial Real Estate Industry - January 17, 2019
Weekend Reading Library (All Editions)