Kohl’s gets new CEO, Hurricane Harvey causes surge in hotel demand and more in CRE

Kohl’s gets a new CEO

Kevin Mansell, CEO of Kohl’s, steps down after 10 years. Michelle Gass, chief merchant, and chief customer officer will replace Mansell. Gass was an executive for Starbucks and hopes to help turn around this struggling company. Another strong woman, Sona Chawla, will be the new President of Kohl’s. Female presence in a retailer as large as Kohl’s is a huge deal, especially considering the abundance of male CEOs stepping down for unorderly contact.

Fed messes up on employment and inflation

Yellen has announced this week that there were inaccuracies regarding employment and inflation. The strength of the labor market was wrongly estimated as well as the effects of a lower inflation. Yellen explains that although low inflation and interest rates sound desirable, they are ultimately limiting. 

Harvey doubles hotel demand

It is common for hotel occupancy to soar after a natural disaster, and Houston is a prime example of this. After Hurricane Harvey, occupancy has consistently been over 80% and prices of rooms have increased.  New patrons of hotels are not just those without homes. Natural disasters bring in emergency responders, insurance adjusters and contractors that all need lodging.

Procaccianti Cos. looks to expand its investments

Procaccianti Cos. will form Real Estate Investment Trust focusing on select service and extended stay properties. Their maximum budget is $552 million, and they seek to make offers to a variety of hotels. Demand growth has surpassed supply growth for the Rhode Island-based company, they hope to counter that with REIT.

Falkon acquires new off-market platform

Falkon, the New York City commercial real estate listing app, has expanded to off-market listings. Falkon has brought in 20,000 users since their start last year. The multi-family mixed-use real estate is not getting taken advantage of in New York due to its complexity. Founder, Ashkan Zandieh, does not want to wait for someone else to swoop in. Zandieh believes that by making mixed-use real estate more accessible Falkon will dominate the CRE database market.