CRE Investors Should Watch These 5 Companies In 2017

2017 Retailer Collage
Bisnow

From Donald Trump's election to the Brexit vote, it's fair to say 2016 has been filled with surprises. While surprises aren't always bad, investors tend to prefer the predictable, and to help build that certainty Bloomberg released a list of 50 companies to watch through 2017, according to data assembled by 40 Bloomberg Intelligence analysts.

Bisnow has zoomed in on five companies most likely to impact commercial real estate investors. Take a look.

Amazon.com

Amazon has been growing like crazy, and we don't expect that to stop anytime soon. With a one-year total return of almost 46% and estimated sales growth just short of 28%, Amazon is a company investors should watch. The firm has enjoyed consistent growth in its Amazon Prime memberships, which have allowed it to invest heavily in new projects, such as Amazon Go's revolutionary technology expected to launch next year that will eliminate the entire checkout process at Amazon Go stores.

American Eagle Outfitters

American Eagle has come out ahead of competitors PacSun and American Apparel, both of which filed for bankruptcy, by maintaining the right product assortment and spurring six consecutive quarters of same-store sales gains. The company boasts a one-year total return of 23.3% and is expected to continue to grow throughout 2017, especially if the firm continues to accurately manage its inventory to minimize discounting.

JC Penney

JC Penney

JC Penney started 2016 trying to sell its HQ to make some badly needed cash and ended up working a turnaround of sorts, posting a smaller-than-expected Q2 loss. While the retailer isn't as badly off as Sears or Macy's, it's unlikely the firm will be able to continue its turnaround through 2017. Bloomberg estimates JC Penney's sales growth is at 1.8%, and that's probably not enough to beat off Amazon and overcome the dead mall phenomenon.

Swire Properties

City of Miami coastline

Hong Kong's largest office landlord is no stranger to Miami, and this year the firm pushed even deeper into the US multifamily market as part of a diversification strategy. Swire's two 43-story condo towers in Miami's Brickell City Centre opened this year, totaling a combined 5.4M SF. Moving into 2017, Swire Properties is expected to continue its expansion.

Walmart

The world's largest retailer made moves this year to beef up its online presence and challenge Amazon, buying e-commerce startup Jet.com for $3.3B, and all signs indicate that's going to continue through 2017. Walmart's one-year total return stands at 15.3%. Sales growth limped up an estimated 0.9%, but don't let that fool you. Walmart's innovation isn't expected to stop in December.

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