Office occupancy in New York finally hits 40%
The glass is almost half full for New York City’s office landlords. Office occupancy pushed past 40 percent last week for the first time since the start of the pandemic, The City reported. The Kastle Back to Work Barometer increased to 41.2 percent; Kastle Systems measures office occupancy by entry into office buildings. The Real… Read more »
Brooklyn Looks Immune to Wider Industrial Market Uncertainty
The commercial real estate industry has been buzzing. News of large e-commerce and logistics companies pulling back on their warehouse spaces — with giants like Amazon putting millions of square feet up for sublease — has shifted sentiments nationally. However, oversupply and lack of demand fears are not at play when it comes to the… Read more »
NYC office investors bet big on future, despite high vacancies
The commercial building sales market is facing a perfect storm of challenges: from inflation and the new work-from-home normal, to interest rate hikes and a dearth of financing. Financing issues recently tanked an $855 million deal for the HSBC building at 452 Fifth Ave., across from Bryant Park, which was being marketed by Eastdil Secured…. Read more »
The devaluation of assets in Black neighborhoods: The case of commercial property
In 2019, a Black real estate developer named Brian Rice tried to get a loan to renovate some buildings he purchased on a neighborhood commercial corridor in the majority-Black Ensley neighborhood of Birmingham, Ala. His vision was to turn these vacant buildings into small businesses, offices for nonprofits, and a conference center. But the bank’s… Read more »
Tracking Changes in the Commercial Real Estate Marketplace
by Neil A. Dolgin Changes in the commercial real estate markets typically develop gradually, then suddenly. Having lived through several recessions and tumultuous markets over the past 48+ years, my experience is that when we see pronounced changes in the economy, the commercial real estate marketplace is generally about six months behind. We ended 2021… Read more »
N.Y.C. Companies Are Opening Offices Where Their Workers Live: Brooklyn
Before the pandemic, Maz Karimian’s commute to Lower Manhattan was like that of many New Yorkers’: an often miserable 30-minute journey on two subway lines that were usually crammed or delayed. By comparison, when he returned to the office last week for the first time since the coronavirus began sweeping through the city, his commute… Read more »
The 2022 New York City & State Real Estate Power 100
For decades, New York’s influential real estate industry was able to achieve many of its policy goals by dipping into its deep pockets to back moderates in both parties. In recent years, however, tenant advocates have found their footing, electing progressive lawmakers, pressuring candidates to reject contributions from developers and pushing for legislative milestones such… Read more »
Party’s over: Rising interest rates crash CRE’s Covid recovery
In June, the Fed raised interest rates by 75 basis points, the largest such increase since 1994. Economists expect similar hikes to follow in July and September. Higher rates mean that financing becomes more expensive, which in turn means that property owners have to extract more money from their buildings to cover costs. At the… Read more »
Valuing commercial real estate in the metaverse
For decades, the value of real estate has been determined by a number of key factors, such as closeness to markets, warehouses, transport hubs and major road links. While physical real estate often has considerable utility – e.g., for the storage of merchandise, accommodating people, and retailing products – a property’s value can be significantly… Read more »