Real Estate & Construction News (8/21/24) – REITs Show Strength, Energy Prices Increase Construction costs and CRE Struggles To Keep Pace
Five months after the National Association of Realtors reached a settlement on how its 1.5 million agents in the U.S. receive commissions, new rules will be implemented when it comes to buying or selling homes. (Kate Gibson CBS)
Projects abandoned in July fell to their lowest levels ever, a result of the anticipated interest rate reduction. (Sebastian Obando, Construction Dive)
- Increases in energy prices drove most of the total rise in construction input costs over the past month. (Sebastian Obando)
- Hotel employees in San Francisco have voted to authorize strikes, following Boston and Honolulu. Votes are still pending in Seattle, Oakland San Jose and San Diego. Noelle Mateer, Facility Dive)
- As investors shift their focus away from large tech firms and AI-driven investments, they are looking for other opportunities in the broader market, such as real estate trusts (REITs). Deidre Woollard from Yahoo
- Across all product types, the commercial real estate industry has struggled to keep up with demand trends which are changing faster than buildings or renovations can be completed in this post-COVID-19 period. (Yilun Zha and Tracy Hadden Loh, Brookings)
- UBS to liquidate a $2 billion real estate fund it acquired when it bought Credit Suisse, in the latest sign of investors selling out of troubled commercial property markets. (Reuters)
