Welcome back, investors. In today’s real estate news – we’ll take a look at Amazon’s attempt to revolutionize the grocery business with their acquisition of Whole Foods, in addition to taking a look further into the rise of commercial real estate values.
Amazon’s $13.7 billion acquisition of the organic retailer, while presenting some threats to the grocery retail market also presents a number of opportunities for retail real estate investors. Matthew Harding, president of retail real estate services firm Levin Management, believes that Amazon’s acquisition will force others to modernize and evolve in order to compete in an already competitive industry.
While there is no shortage in the capital funding these investments there is in fact a shortage in the quality of investment opportunities available. A fear Joel Moser, CEO of Aquamarine Investments Partners and many others feel will drive these infrastructure funds towards energy sources like oil and gas pipelines.
The more values rise, the greater the fear that a dreadful drop is just around the corner, but not this time around according to data pulled from Moody’s/RCA Commercial Property Price Index. Which shows that ‘apartment prices are now 53 percent above the pre-crisis peak levels reached in 2007 while core commercial prices are up 13 percent.’