Shale towns overbuilt as oil industry declines
Towns where shale oil production has escalated in recent years responded by building more homes to accommodate an increasing workforce. But those towns are now overbuilt as oil production recedes and workers leave or are unable to afford to buy a home. In Bakken, North Dakota, for example has hundreds of units at a worker’s accommodation camp standing empty and construction of more homes in the surrounding area. While some, including the town’s mayor, are concerned about the empty homes, others are more optimistic. “We didn’t build temporary housing on purpose because we viewed North Dakota as a long-term play,” Israel Weinberger, a principal at Coltown Properties, which invests in multi-family real-estate developments told Bloomberg: “We think the local production of oil is here to stay. Yes, prices have dropped, but it’s a commodity and commodities fluctuate. There is always a risk.”
Canadians top foreign buyers of New York property
Canadians have spent more on real estate in Manhattan than any other foreign investor according to new figures. Real Capital Analytics says that $3.85 billion of New York property in 2015, doubling the amount spent last year. Canadian firms are also involved in developments in Manhattan including a large waterfront project which could create 17 million square feet of commercial and residential space.
Tyra Banks lists Beverly Hills mansion for $7.75 million
“America’s Next Top Model” host and businesswoman Tyra Banks hopes to prove her business acumen by selling her Beverly Hills home at more than double the price she paid. The New York Daily News says that Banks bought the Spanish-style mansion a decade ago for $3.09 million and has listed it at $7.75 million. The sale is the result of a chance encounter with a Malibu Hills home which according to a friend she “fell in love with”. The three bedroom home of 6,040 square feet that she is selling is at 9308 Readcrest Drive.
Real estate firms developing greener properties
The global real estate industry is doing its bit to reduce climate change by developing an increasing level of reduced-carbon and sustainable buildings. The ULI Greenprint Center’s performance report shows that over the past year, global real estate firms have reduced energy consumption in buildings by the equivalent of almost 280,000 barrels of oil and cut carbon emissions by the equivalent of removing 25,000 cars from the road. The report considers the performance of more than 5,000 buildings in 51 countries.