National market report

BOSTON

Are real estate brokers employees or contractors? The Supreme Judicial Court of Massachusetts ruled on the question last month, but refused to resolve it. The case, Monell v. Boston Pads, was brought by a group of brokers in 2011. They accused their firms of requiring them to perform employee-like tasks, including supervised administrative work in the office, while offering few benefits and charging the brokers “desk” and “farm” fees. The defendants said that the brokers were contractors despite the extra duties. The Boston Globe reported that the court ruled for the plaintiffs, saying the brokers had not been misclassified, but nonetheless agreed with a lower court that the state’s law governing independent contractors doesn’t clearly indicate brokers’ status in general. The court called for further discussion of the question, and, if necessary, a legislative fix.

CHARLOTTE, N.C.

A hotel building boom is underway in Charlotte that will add 1,900 rooms, increasing capacity by 42 percent. A combination of pent-up demand from the latest recession, low interest rates and a strong travel market is fueling the growth. Hotels in Mecklenburg County, which encompasses Charlotte, saw an occupancy rate of 70.3 percent in the first three months of this year, up from 66.7 a year ago, and ahead of the U.S. national average of 61.1 percent, the Charlotte Observer reported. The average daily room rate and revenue per available room also rose. The boom is part of a national trend in the hospitality sector, sprouting new large hotels in Houston, Washington, D.C. and elsewhere. More than 70 new hotels are in various stages in Manhattan, and more are underway in the outer boroughs.

LOS ANGELES

A recent court ruling in Los Angeles could chill development in a market already known for heavy regulation. A Los Angeles Supreme Court judge ruled that New York-based Millennium Partners, developers of the billion dollar mixed-used Millennium Hollywood project, must halt construction over what the court declared were dodgy environmental review practices. Millennium’s review failed to address traffic concerns from the California Department of Transportation, among other things, said Judge James Chalfant, according to the Los Angeles Times. Millennium is considering an appeal, but may be forced to produce a new review. Opponents of the ruling, the city government among them, maintain that the court has placed extraordinary demands on the developers.

BOULDER, COLORADO

The city of Boulder, Colorado, is debating an ordinance that would limit short-term vacation rentals, such as those found on sites like Airbnb and VRBO, to owners renting their primary residences. The proposal is a response to fears about the rapid growth of such services and the increase in apartments being used solely for short-term rentals. Critics say the influx could threaten community cohesion and crowd out other kinds of rentals, the Denver Post reported. A counterproposal from community members would permit all owners to rent short term, but would limit the total number of such rentals citywide. Boulder follows other cities, such as San Francisco, that have moved to set legal limits on short-term rentals, or, in the case of New York, attempting to enforce existing statutes that exclude Airbnb-like rentals. 

Caitlyn Jenner

MALIBU, CALIFORNIA

Olympian, reality TV star and transgender pioneer Caitlyn Jenner bought a secluded 3,500-square-foot, four-bedroom, three-and-a-half bath mountaintop home in Malibu for $3.6 million. The James Hernandez-designed house sits on just over 11 acres, and features open-plan living spaces, indoor and outdoor fireplaces, as well as a swimming pool and spa with unobstructed ocean views.

DALLAS

Hall of Fame quarterback and Fox NFL analyst Troy Aikman sold his three-story French Normandy-style home in Highland Park for $5.4 million. The five-bedroom 10,700-square-foot house features a wine cellar and a home theater with a concession stand. Aikman bought the property in 2013 for $4.25 million.

Neverland Ranch

SANTA YENZ VALLEY, CALIFORNIA

Neverland Ranch, the former home of the late King of Pop Michael Jackson, is for sale for $100 million under its original name, Sycamore Valley Ranch. The 2,700-acre property 150 miles north of Los Angeles features a six-bedroom main house, as well as a train station, a 50-seat movie theatre and two lakes. Jackson added a zoo and a small amusement park to the property after he purchased it in 1988, but they’ve since been removed.

LAS VEGAS

Magician and actor Penn Jillette of Penn & Teller conjured up $3.3 million for a 7,800-square-foot mansion outside of Las Vegas. The home has five bedrooms and seven bathrooms, and features a two-story great room, a family room with wet bar, a movie room, and views of the mountains and the Vegas Strip.