Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are five stories that caught our eyes in recent days.
? ?The Rising Cost of Prescription Real Estate? by Mark Heschmeyer of CoStar.
Drugstores continue to be sold at record-high prices, Heschmeyer reports.?
Walgreens stores are particularly popular with investors right now, showing a significant increase in per-square-foot sale prices since late last year, according to CoStar data. Walgreens were going for an average of $374 per square foot in the fourth quarter of 2011, and now are selling for $419 per square foot, Heschmeyer reports. That?s a 12 percent increase.
CVS is also seeing a 12 percent increase in per-square-foot sales prices over the same timeframe. Rite Aid stores are experiencing a 7 percent increase.?
? ?Skyscraper? Value of New York Tower is High? by Craig Karmin of The Wall Street Journal.
TIAA-CREF, one of the largest pension fund managers in the United States, has agreed to pay about $250 million to developer Forest City Ratner Cos. for a stake in a Manhattan apartment building currently valued at a record $1 billion.?
The 850-foot-tall tower at 8 Spruce St. in lower Manhattan features penthouse apartments with asking rents of up to $60,000 a month. TIAA-CRE?s stake will cover 49 percent of the building?s equity, according to Karmin.
Even though momentum in the apartment sector is slowing, investor demand remains strong for high-end apartment buildings, Karmin notes.
? ?Will Shipping Containers Catch On as Building Products?? by Anna Spiewak of Commercial Property Executive.
As the construction industry is becoming ?greener,? shipping containers are now being looked at in a new way: as building material for residential and commercial properties, according to Spiewak.
Shipping containers are strong structurally, said engineer Patrick Beville, who has built six homes out of the containers. Containers also tend to produce small homes that are faster to build, more sustainable and cheaper, Spiewak notes.
Worldwide, shipping containers are being used more frequently in construction, such as in the case of an entire block of apartments in Johannesburg, South Africa. A 36-room hotel made of containers is planned in Detroit, Spiewak notes.
Public acceptance is slow as people wait to see more contemporary designs that don?t have a ?trailer-home? feel, Spiewak reports.?
? ?French Software Maker Arkadin Puts North American HQ in Atlanta? by Urvaksh Karkaria of the Atlanta Business Chronicle.
Paris-based Arkadin, a communications software maker, has moved its North America headquarters from New York to Atlanta, Karkaria reports.
Arkadin President Mark Alexander told Karkaria that being in the fast-growing Southeast will provide the company significant advantages for long-term growth. Atlanta provides Arkadin better coverage of the United States and better access to skilled talent, according to a company spokeswoman.
Arkadin has leased more than 10,000 square feet in the ?Queen Building? located at 5 Concourse Parkway in the Central Perimeter submarket, according to Karkaria.
? ?Bank CRE Lending Slows to a Crawl? by Mark Heschmeyer of CoStar.
The third quarter had banks retreating from commercial real estate lending, Heschmeyer reports.
Lending for multifamily properties was up just 1 percent, and investment property lending was up about one-quarter of a percent. Construction and development loans were down 3.3 percent in the third quarter.
Bank lending for refinancing or buying owner-occupied commercial real estate properties dropped two-tenths of a percent in the third quarter, making it the second quarter in a row that the statistic has declined, according to Heschmeyer.
Residential mortgage demand was mostly flat, whereas small-business-loan demand experienced modest growth, Heschmeyer reports.
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