In today’s commercial real estate news, the MBA CREF is off to a cautiously optimistic start, low oil prices lead to a sagging commercial market, and a list of retailers set to close stores over the coming year.
Low oil prices: good for the wallet, bad for commercial real estate. With the energy sector hurting, all types of commercial properties are feeling the squeeze. Less industrial land is needed to process oil. Fewer offices are opening following massive layoffs. Even hotels are suffering from a lower number of oil executives buzzing around the United States. Peter Muoio, chief economist at Ten-X, said the worst was likely over.
Massive retail conglomerates are ditching their real estate holdings to stay competitive against the nimble new e-commerce stores. Mall staples such as Claire’s, Gymboree and American Eagle are all planning to close stores in 2017.