CPE’s July 2020 Must-Reads
- Aug 05, 2020
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: