CRE Business

Tenant demand for life sciences space is declining due to a slowing economy, rising interest rates and a pullback in available venture capital.

While Seritage assets are sure to create investor interest, a cloudy economic outlook and tighter financing availability are bound to be major factors in negotiations, market observers say.

Fearful of shortages, retailers including Gap Inc. and Nike Inc. ordered extra and did so earlier than usual, but a combination of poor forecasting and inflation-stung shoppers created massive gluts.

Higher interest rates and tightened underwriting standards have created an opportunity for short-term and gap lending solutions.

After three straight months of declines, the FTSE All Equity REIT rose more than 3% for the month of October.

At the heart of the Northeast’s energy squeeze is natural gas. Almost half the electricity generated in New England and New York comes from gas.

By assuming existing loans, investors can mitigate the risk from rising interest rates and ultimately underwrite a greater leveraged return, market participants say.

The lack of available space and spiking rents around major U.S. ports is leading tenants to diversify or relocate to smaller ports around the country.