Real Estate & Construction News Roundup (5/29/24) – Megaprojects on the Rise, Agency Guidance for CRE, and an Upbeat Forecast for Commercial Real Estate Investment

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Pillsbury - Gravel2Gavel Construction & Real Estate Law

In our latest roundup, summer travelers seek alternative lodging options, purpose-built wellness real estate investments grow, bonds backed by CRE debt hit are hit with losses, and more!

  • Across all property types, purpose-built wellness real estate investment has grown dramatically in recent years, including properties with wellness features as a focus. (Mary Salmonsen, Multifamily Dive)
  • The travelers on the road this summer will have different demographics, budgets and reasons for travel and different preferences on accommodations, with more travelers opting for alternative housing options. (Noelle Mateer, Hotel Dive)
  • Megaprojects are on the rise, with massive projects, from rail tunnels to computer chip factories, having myriad stakeholders and lengthy timelines that span political administrations. (Julie Strupp, Construction Dive)
  • The commercial real estate forecast for the year’s second half remains predominantly upbeat as multifamily, retail and industrial properties maintain strong performance. (Margaret Jackson, Yahoo)
  • As delinquencies on multifamily mortgages pile up, lenders who had bundled those borrowings into securitizations known as CRE collateralized loan obligations are racing to stave off trouble. (Scott Carpenter, Bloomberg via Yahoo)
  • For the first time since the financial crisis, investors in top-rated bonds backed by commercial real estate debt are getting hit with losses. (Carmen Arroyo and Natalie Wong, Bloomberg via Yahoo)
  • Regulatory agencies published guidance that stressed the importance of maintaining the key fundamentals—regarding CRE loans—especially those in the office sector. (Patricia Buckley and Tim Coy, Deloitte)

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