CPE’s July 2020 Must-Reads

Catch up on our most important stories, interviews, rankings and analyses from last month.

While the COVID-19 crisis continued to press on, some signs of optimism began to show for the real estate industry as restrictions were eased or lifted altogether. We sat down with Nuveen’s Jayanth Ganesan to talk about the coronavirus-resilient cities better positioned to face the pandemic. Meanwhile, JLL’s Kevin MacKenzie noted that currently there is more capital in the market than during the Great Financial Crisis, although it’s not yet business as usual. And, with retail emerging as one of the more better-equipped sectors in the face of the pandemic, we asked industry experts how long this momentum is likely to last.

Last month, we also got news of the first drop in construction costs in a decade, according to Turner Construction Co.’s quarterly Building Cost Index. At the same time, a new forecast from the American Institute of Architects noted that spending on nonresidential development is projected to decline through at least part of 2021, following a decrease over the past few months.

Tech giants have made headlines in July, as their profits were positively affected by the pandemic. Facebook has chosen DeKalb, Ill., for its 12th data center in the U.S. Meanwhile, Amazon is set to invest $250 million in a new location just outside Austin, Texas, while also expanding its distribution network in the Austin metro area. Additionally, the e-commerce behemoth has announced plans to open an 855,000-square-foot fulfillment and sortation center in Mt. Juliet, Tenn.

July was also a great month for investment vehicles, with KKR completing the final closing of KKR Real Estate Credit Opportunity Partners II, with capital commitments totaling $950 million. Meanwhile, Angelo, Gordon & Co. has raised more than $1.5 billion in equity commitments for its latest European fund, AG Europe Realty Fund III. And Blackstone’s Strategic Partners has completed the final close for Strategic Partners Real Estate VII LP, having raised $1.9 billion for the fund.

Here are CPE’s must-reads for last month:

CPE’s Coronavirus Coverage

Check out our latest news updates, features and expert advice on the coronavirus outbreak and its effects on commercial real estate.


Podcast: Downbeat Expectations Across Global CRE Markets

The Royal Institution of Chartered Surveyors’ latest international study finds that investor and occupier sentiment has shifted into negative territory. Tune in for all the details from RICS Economist Tarrant Parsons.


1031 Exchange FAQ

CPE answers essential questions on Section 1031 of the U.S. tax code and what it can mean for your real estate portfolio.


Top 5 Markets for Office Transaction Growth

The metros on this list saw at least triple-digit growth rates in transaction volume year-to-date through May, compared to the same period of 2019, according to Yardi Matrix data.


Why Suburbs, Secondary CRE Markets Will Benefit From the Next Recovery

According to reports by Cushman & Wakefield and Marcus & Millichap, COVID-19 is bolstering a preexisting shift in commercial real estate away from core markets.


June Unemployment Figures Reveal Silver Lining

With 4.8 million jobs added in June, unemployment fell to 11.1 percent. A breakdown of metro- and state-level data, however, offers a more nuanced view.


Will COVID-19 End the Era of Urbanization?

The COVID-19 crisis is bringing new attention to suburbs, but Yardi Matrix’s Paul Fiorilla explores the reasons why it’s too soon to declare that the long run of urbanization is over.