S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
Datacenters across North America recorded tightening availability and growing rental rates in the first quarter due to strong demand, CBRE said in a report.
Three of the four major datacenter markets in North America recorded a year over year decrease in availability. Northern Virginia saw the largest drop in datacenter availability at 16.2 MW, followed by Chicago and Dallas-Fort Worth, with 10.6 MW and 1.5 MW, respectively.
All four major markets booked year over year increases in net absorption, as public cloud providers and AI companies drive demand for datacenters, CBRE said. Northern Virginia posted the biggest jump, at 407.4 MW, followed by Chicago with 218.7 MW, Dallas-Fort Worth with 140.2 MW and Silicon Valley with 62.6 MW.
The tightening supply and growing demand drove rental rates to accelerate, with the average asking rate for a typical 250- to 500-kW requirement surging 20% year over year, the real estate services company said.
CHART OF THE WEEK: US equity REIT capital offerings grow in May
⮞ US equity real estate investment trusts secured $9.88 billion in capital in May, up 29.5% from $7.63 billion a year earlier.
⮞ Of the total amount raised in May, $8.18 billion were raised via note offerings.
⮞ Datacenter REIT Digital Realty Trust Inc. raised the most capital for the month, pulling in $1.69 billion.
Acquisitions
– KKR & Co. Inc. bought a portfolio of 18 multifamily properties for roughly $2.1 billion from a closed-ended fund sponsored by Quarterra Multifamily Communities LLC. The more than 5,200-unit portfolio spans California, Washington, Florida, Texas, Georgia, North Carolina, Colorado and New Jersey.
– EQT Exeter acquired a 24-building industrial portfolio spanning more than 5 million square feet across major logistic routes in the Minneapolis/St. Paul area, according to the company's LinkedIn post. The portfolio was sold by Prologis Inc. for approximately $450 million, the Minneapolis/St. Paul Business Journal reported, citing a source close to the transaction.
– An affiliate of AMLI Residential Properties Trust sold the AMLI Doral apartments at 11431 Lakeside Drive in Doral, Fla., to an affiliate of Pantzer Properties Inc. for roughly $139.3 million, the South Florida Business Journal reported. The apartment complex comprises 475,423 square feet and was renamed the Point at Lakeside.
US hotel performance
US hotel performance was up year over year across only one key metric during the week ended June 22, STR reported, citing data from CoStar, which provides information and analytics on property markets.
Average daily rate (ADR) rose 0.1% to $159.88. However, revenue per available room (RevPAR) was $111.17, down 2.3% from the comparable week in 2023, and occupancy fell by 2.5% to 69.5%.
Among the top 25 markets, Seattle posted the highest numbers for occupancy and RevPAR growth, while Philadelphia reported the highest year-over-year increase in ADR. San Francisco and New Orleans reported the steepest drops in RevPAR.
Click here to see key people moves in North American real estate.
REIT Replay: US REIT share prices largely flat during week ended June 21
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