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Haight neighbors claim 100 percent affordable housing project at McDonald’s is too tall

The rent is too damn high, and to correct this, every San Franciscan is clamoring for The City to build affordable housing — and a lot of it. But one pocket of our sleepy little town is drumming up opposition to a plan for affordable housing at the site of the McDonald’s restaurant on Stanyan Street.

The problem? It’s too tall, they say.

The Haight Ashbury Neighborhood Council — or HANC, as they’re called — penned a public letter in late December laying out its support for the project, in general, but voiced concern that a 65-foot, 7-story-tall development would “substantially change the character of the area,” due to its “height and bulk.”

Read more from the San Francisco Examiner

Powell as Fed Chief—A Win for CRE Investors and Lenders?

As 2017 comes to a close, commercial real estate total transaction volume is over $500 billion according to CoStar. Although, that equates to a 14 percent year over year decline, many forget that those levels are still higher than 2006—a banner year. Regardless, numerous industry observers are holding their collective breath. In fact, Janet Yellen began 2017 indicating a potential bubble in commercial real estate driven in part by today’s extended low interest rate environment.

In response, lenders, investors and regulators remain anxious with the possibilities of cap rates blowing out in the face of rising interest rates. But are these concerns warranted and will the nomination of Jay Powell actually lead to strong levels of commercial real estate price growth?

Read more from National Real Estate Investor

How CRE Investors Could Cash in On the Tax Bill

President Trump signed the new Tax Cuts and Jobs Bill on Dec. 22, effectively putting the final seal of approval on the most substantive tax law changes that the country has seen in 30 years.

It may take some time to crunch the numbers to determine just how much tax savings the new tax bill could generate for commercial real estate investors. The general view is that provisions specific to property owners and developers will deliver a net positive result—although not nearly the windfall that corporations will see with a drop in the tax rate from 35 percent to 21 percent.

Read more from National Real Estate Investor

What’s Up With Retail?

Rent, online shopping, regulations, and a higher minimum wage reduce the brick-and-mortar presence.

Omar Mughannam of Beauty Center faced a 30 percent rent increase at one location.

For local retailers, whose inventory costs are high and whose profits depend on foot traffic and fickle consumer demand, even small increases in rent can be difficult to bear. And when rent increases hit double digit percentages, owners are often forced to relocate to a more affordable space, consolidate multiple outlets, or close altogether.

Empty stores are everywhere, in Rockridge where Itsy Bitsy, Cotton Basics, Rockridge Home, and See Jane Run once seemed to thrive; in Elmwood where the corner of College and Ashby looks sparse without Jeremy’s, and in Montclair Village, too, where the local bike shop and Daisy’s are no more.

Global Economic Briefing, The NAI Global Quarterly Review of The Economy

In June the U.S. economy entered its 96th month of economic expansion, the third longest in U.S. history since 1854. Odds are favorable that this period of growth will surpass #2, which took place during the turbulent 1960s (1961-1969), yet calling the takeover of the 120-month economic expansion and #1 “tech boom version 1A” from 1991 to 2001 is too early to say.

That was one of the takeaways from a recent Global Economic Briefing sponsored by NAI Global in a live webcast presented to NAI professionals and guests in mid-June by Dr. Mark J. Eppli, Professor of Finance and Bell Chair in Real Estate at Marquette University. Once a quarter, NAI Global hosts an economic outlook call featuring domestic and international experts on the economy and other business trends.

Read more from NAI Global

Abandoned Warehouses Are Being Transformed Into Popular Mixed-Use Developments

Outdated warehouses of the past are being resurrected to accommodate a new future. But that future is edging some people out of town.

Now, developers are using the empty vessels as a base to create the much-desired live-work-play dynamic. But this shift may not be good for all, CityLab reports.

Read more from Bisnow

Economy Watch: Industrial Sector on Top in 2017

The industrial sector has emerged as the growth leader in commercial real estate, according to a new report by Morningstar, a notion that’s in agreement with the wider consensus about industrial now leading income-generating real estate. As a darling among owners and investors, apartments may still be strong, but the industrial sector is the rising star.

That’s thanks to Amazon and e-commerce as a whole. Industrial logistics space outperformed office, retail, apartment and even light industrial space in terms of supply, demand, occupancy and rent growth in the first half of 2017, noted the report.

Read more from Commercial Property Executive

Trump picks Jerome Powell to succeed Yellen as Fed chair

President Donald Trump nominated Jerome Powell to run the Federal Reserve once current Chair Janet Yellen’s term expires, in a move widely expected and one unlikely to disturb the roaring stock market.

Trump made the announcement during a Thursday afternoon ceremony in the Rose Garden.

The move follows an extended period of speculation over who would be named to head the central bank, whose aggressive policies have been considered crucial to a climate of low-interest rates, surging job creation, and booming asset prices.

Read more from CNBC