Editors’ Weekly News Roundup April 21 – April 25
The past week found Connect CRE readers in an expansive frame of mind, at least judging by the week’s five most-read stories. As part of a nationwide renovation and expansion initiative, Walmart is rolling out one of its latest models in the Houston suburb of Cypress, TX.
Headlined 203K-SF Walmart “Store of the Future” to Open in Cypress, the story appearing on our Texas page topped the past week’s rankings. The retailing giant plans to construct more than 150 new stores and remodel 650 existing locations across the U.S. over the next five years.
Our second most-read story focused on another retailer in growth mode, this one serving up donuts and coffee rather than discounts. Already in 13 countries (including its native Canada) with more than 5,700 locations, Tim Hortons seeks to make inroads across Maryland.
The program detailed in Tim Hortons Plans Expansion with Ten New MD Locations is being spearheaded by brokerage Hyatt Commercial. The retailer is looking for opportunities to build freestanding stores with drive-thru capability or high-traffic endcap spaces. Unlike Walmart, it doesn’t plan to propagate a new store format: the Maryland locations will configure to its standard 1,600-square-foot dimensions.
Modernization programs budgeted at billions of dollars have been underway in recent years for the major airports in the New York City and Chicago regions. Now it’s Austin’s turn. Our third most-read story this past week, Austin Airport Nearly Ready to Begin $4B Expansion, reported that plans for Austin-Bergstrom International Airport are multifaceted. They include the addition of a new terminal that could yield up to 30 new gates, a new parking garage, a tunnel connecting the existing terminal to the new one, redesigned taxiways for aircraft, redesigned baggage systems and a new arrivals and departures hall.
ABIA leaders are in the final planning stages of the project. We reported that a 2030 completion date has been called for.
Public pension systems have been among the most active investors in commercial real estate over the years, and the California State Teachers Retirement System (CalSTRS) is a case in point. Connect CRE readers learned in CalSTRS Taps Nuveen for Self-Storage Investment that a separately managed account has been established to finance acquisitions and development in the sector.
“Self-storage has proven to be a resilient asset class with strong fundamentals,” said Melissa Reagen, portfolio manager, Nuveen Real Estate. “Typically driven by life cycle events—such as getting married, moving homes and having children—demand is consistent through economic cycles.” The story was the fourth most-read for the week.
The unidentified buyer in our fifth most-read story for the week, 3,700-Bed Student Housing Deal is Sector’s Largest Year-to-Date, completed a transaction that tipped the scales. For its part, the seller did likewise: the deal was the largest sale or purchase completed by The Preiss Company in its history thus far.
Newmark Head of Student Housing Ryan Lang, who led the team arranging the deal, said the transaction reaffirmed the appeal of this property type. He added, “As enrollment numbers continue to rise and campuses expand, investors are seeking more opportunities in well-located, high-quality student housing, a resilient and attractive asset class.”