Prologis Predicts Significant Drop in Warehouse Development
Prologis is predicting that U.S. warehouse development starts will drop to a 7-year low, as rent growth exceeds 10%. Starts are already 30% below their peak in Europe and Prologis expects that to continue in the US. The warehouse property owner says the rapid rise in the cost of capital is the culprit and starts… Read more »
Are Investors Pulling Money Out of REITS
While specific segments of the commercial real estate (CRE) market such as industrial and healthcare are performing well, others like office and retail are alarming investors. Rising interest rates are heightening those concerns. In response, investors are actively reducing their exposure to the CRE market. According to The Wall Street Journal, real estate investment trusts… Read more »
Goldman Predicting U.S. Will ‘Narrowly’ Escape Recession, Even As Banks Tighten Lending
Goldman Sachs is pegging chances of the United States entering a recession in the next year at 35% and predicts interest rates will hold steady next year. The UK and Europe are already in recession due to the hit to real incomes from surging energy bills, per the investment bank’s research report examining the macro… Read more »
Adams Reveals Plans for NYCFC Soccer Stadium, Affordable Housing at Willets Point
After more than a decade of negotiations, New York City has finalized a deal to build a professional soccer stadium and affordable housing at Willets Point in Queens, next to Citi Field. The stadium will offer a permanent home for New York City Football Club (NYCFC), the city’s peripatetic professional soccer team that has played… Read more »
Medical office sector maintains high demand as other commercial real estate sectors struggle
Health care real estate is viewed as a stable asset among investors Despite commercial real estate challenges that started during the pandemic, the medical office sector remains one of the most resilient and a favorite for investors, according to JLL’s Healthcare and Medical Office Perspective report. Absorption has outpaced new supply and occupancy has remained… Read more »
Fed’s Rate Hikes Aren’t Bulldozing Commercial Real Estate— Yet
The Federal Reserve’s announcement of another 0.75 percentage point interest rate increase continues the central bank’s grim war with inflation. Higher rates are doing damage across the economy, which has never stabilized after the Covid-19 shock. But commercial real estate, vital to cities’ economic and fiscal well-being, hasn’t taken a big hit—yet. Ever-higher interest rates… Read more »
Real Estate Makes Up Larger Share Of NYC’s Tax Revenue Even Amid Value Reset
Real estate taxes have steadily become a larger and larger part of New York tax collections over the last eight years as the city faces a fiscal crisis. In the financial year ending 2021, real estate-related taxes made up 54.1% of tax collections, up from an average of 51.9% between 2015 and 2018, according to… Read more »
Commercial Property Prices are Down 13 Percent Due to Higher Interest Rates
The impact of higher interest rates is beginning to take its toll on commercial real estate prices. Commercial property prices have fallen nearly 13 percent so far this year, according to Green Street’s Commercial Property Price Index in October. The Index reports that commercial real estate prices were down 7.3 percent alone in October. The… Read more »
Commercial Real Estate Rentals Are Heating Up
by Neil A. Dolgin This year has been a challenging one for building owners because of high inflation, rising interest rates and the increasing costs of doing business in New York City. It’s been an even tougher one for owners of vacant buildings who tried to sell their properties on the high side and waited… Read more »
Multifamily, Development, Industrial Trades Push Brooklyn’s Investment Sales To $5.56 Billion
Investment dollars poured into Brooklyn’s commercial real estate market in the first six months of the year, accounting for a quarter of the $22 billion in commercial property sales across New York City in 1H 2022, second only to Manhattan which saw 53% of the city’s dollar volume. The dollar volume in Brooklyn totaled $5.56… Read more »
A radical new ploy to lure Google and other firms to Brooklyn
When apartment landlords have empty units, they lure prospective tenants with cheaper rents and free perks. Office landlords haven’t historically offered such grand concessions to fill vacant square footage — until now. The New York City real-estate developer Rubenstein Partners is willing to offer a nearly 50% discount on rent and more flexible terms than… Read more »
Changes to Supply Chain Will Benefit Commercial Real Estate
Online shopping is now the preferred method for 68% of consumers, which has increased significantly since the beginning of the pandemic. Since the pandemic began, supply chain issues have impacted the eCommerce sector significantly. What does this mean for the commercial real estate industry? Keep reading as we discuss what is causing the changes to… Read more »
Understanding Different Types of CRE Leases
Leasing occupies its own particular corner of commercial real estate landscape, complete with specialized practitioners who represent tenants and landlords big and small. And while it’s the giant-square-footage commercial property transactions with complex clauses that make the headlines, it’s the smaller leases that make up bread-and-butter negotiations. Regardless of size, however, commercial lease agreements generally… Read more »
Pension funds pull back on commercial real estate
The retirement funds are cooling on the sector and limiting new investments in the sector, the Wall Street Journal reported. The shift comes after they poured money into commercial real estate during the first half of the year, capitalizing on a market trying to recover from the wreckage of the pandemic. Retirement funds made $32.6… Read more »
Chicago ramen restaurant Urbanbelly coming to new Williamsburg Market
Chicago-based Cornerstone Restaurant Group, best known for Michael Jordan’s Steak Houses, is set to bring its beloved ramen restaurant Urbanbelly to Williamsburg next month. The new restaurant — an expansion for Urbanbelly, at home in Wicker Park — will be located in the new Williamsburg Market, coming soon to 103 N. Third Street. The Kings… Read more »
Can $50 Million Make a Dull Brooklyn Office Park Cool?
New York City’s most populous borough has many crowd-pleasing attractions: the Brooklyn Bridge, the Brooklyn Botanic Garden, the Brooklyn Nets. Now there’s Brooklyn Commons. It’s better known as the MetroTech Center, a dull and insular back-office hub for financial firms and city agencies in Downtown Brooklyn that many New Yorkers have largely ignored — unless… Read more »