Commercial real estate investors are moving to smaller markets and buying suburban properties as they search for higher returns after snapping up the most desirable buildings in the biggest U.S. cities.
CommonWealth REIT owns office buildings throughout the U.S., yet employs no one. Cole Credit Property Trust III Inc., which leases about a thousand stores around the country to retailers such as CVS, Lowe’s and Wal- Mart, also had no workers until a recent acquisition.
American Realty Capital Properties Inc., an owner of U.S. single-tenant buildings, is poised to own eight times the properties it had at the end of 2012 after a buying spree that included two major deals this week.
Nicholas Schorsch, who in seven years built the top company in the $10 billion industry of nonlisted U.S. real estate investment trusts, is leaving behind the types of properties that made the firm No. 1.
CommonWealth REIT’s clash with shareholders over a stock sale is putting a spotlight on the company that manages it and four other real estate investment trusts after investors complained the structure erodes value.
Joy Global Inc., the world’s second-largest maker of mining equipment, refuted allegations made about its International Mining Machinery Holdings Ltd. unit and said it has a “high level of comfort” in the reported results of the business it bought in China last year.
Bill Ackman’s Pershing Square Capital Management LP, the second-largest investor in General Growth Properties Inc., urged the mall owner to enter negotiations for a takeover by rival Simon Property Group Inc.
The nascent recovery in U.S. commercial real estate may be cut short as Europe’s debt crisis and Standard & Poor’s credit downgrade of Treasuries send borrowing costs to their highest in more than a year.
Tom Barrack’s Colony American Homes Inc., which owns more than 12,000 U.S. rental houses, postponed an initial stock offering as shares of real estate investment trusts decline, according to data compiled by Bloomberg.