Investments in real estate products are always in demand, some more so than others. Actual returns on the investments appear to be moderating though development activity remains strong within specific categories such as single use retail (i.e. restaurants, fast-food, service). Here’s a quick look at a few real estate categories:
Hotels. Drive the interstates and you’ll see new limited service hotels coming out of the ground everywhere. There are new names for Hilton and Marriott being pushed out, each with the ubiquitous 100 room, four story design package. Are there enough to meet demand? Rumors of revPAR slowing for national branches seem to support the idea that at least a slow-down in construction is on the horizon. Perhaps a factor is the room revenue in the over 7 million home rental listings of Airbnb.
Retail. The retail world is very segmented with each grappling with its own set of circumstances, both positive and negative.