S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
More companies across the US, Canada and Latin America are looking at expanding their office portfolio, even as return-to-office policies are still loosely enforced, according to a survey conducted by CBRE.
Among survey respondents, 38% said they seek to grow their office portfolio, up from 20% in 2023. This reflects a decline in interest in reducing space seen after the pandemic, the real estate service provider said.
Four-fifths of the employers in the survey are considering renewing their office space, while 59% are looking at relocating to upgrade location, space or experience.
About 80% of the surveyed organizations have an office attendance policy, though only 17% actively enforce it. While 60% of the companies want employees to work in the office at least three times a week, only 51% of employees adhere to this expectation.
CHART OF THE WEEK: 3 US REITs issue $1.43B in green bonds
⮞ Three US real estate investment trusts issued green bonds in the first half of 2024, totaling $1.43 billion in gross proceeds.
⮞ American Homes 4 Rent and Host Hotels & Resorts Inc. each have issued $600 million in green bonds, while Empire State Realty Trust Inc. issued green bonds worth $225 million.
⮞ Since 2018, Digital Realty Trust Inc. has raised the biggest amount in green bond offerings, securing nearly $6.09 billion in proceeds.
Top deals
– Real estate and private equity firm Jamestown LP is acquiring the Atlanta unit of North American Properties Inc. The subsidiary is an owner/operator and real estate services provider of mixed-use properties across the Eastern US and has $2 billion in assets under management.
– Billionaire Larry Ellison acquired the 310-room Eau Palm Beach Resort luxury hotel at 100 S. Ocean Blvd. in Manalapan, Fla., for $277 million, Commercial Observer reported, citing property records.
– Canada-based Artis REIT completed the sale of a nine-asset industrial portfolio for US$197.4 million to an undisclosed buyer. The assets are spread across Greater Phoenix and the Twin Cities area of Minnesota, with a combined area of over 1 million square feet.
– Medical Properties Trust Inc. closed the $86 million sale of 11 freestanding emergency department, primary care, imaging and urgent care facilities in Colorado to University of Colorado Health. The healthcare REIT plans to use the sale proceeds to reduce debt and for general corporate purposes.
US hotel performance
The average daily rate (ADR) and revenue per available room (RevPAR) of US hotels were up over 1% during the week ended Aug. 10, STR reported, citing data from CoStar, which provides information and analytics on property markets.
ADR rose to $159.49, 1.4% higher than the comparable week in 2023. RevPAR climbed 1.9% to $109.51.
Occupancy rose 0.5% to 68.7%.
Among the top 25 markets, Houston recorded the highest annual gains in occupancy and RevPAR. Chicago logged the biggest jump in ADR.
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