Skip navigation
NREI WIRE
closed subway station Chris Hondros/Getty Images

Seven Must Reads for the CRE Industry Today (Aug. 31, 2020)

The Real Deal explores how the severe financial strain for New York’s Metropolitan Transit Authority could have “catastrophic” effects for commercial real estate if big service cuts are the result. The restaurant market in Los Angeles is facing a reckoning with reductions in rents necessary to prevent permanent closures. These are among today’s must reads from around the commercial real estate industry.

  1. MTA crisis could be catastrophic for New York real estate “Transit cuts could create a vicious cycle as workers lose faith in the system and fare revenue falls further, triggering more cuts and ridership losses. The impact ‘would not only be catastrophic for the real estate industry, but for the entire businesses community,’ said Scott Rechler, chairman and CEO of RXR Realty, who is also chairman of the Regional Plan Association and a former MTA board member.” (The Real Deal)
  2. LA’s Restaurant Real Estate Market Is Seeing a 20 Percent Drop in Rents “Now, with a sea of new vacancies, a standstill in new leases, and remaining businesses operating at a fraction of their previous levels, restaurants are being forced to adapt to a new landscape, and landlords are facing a reckoning of their own.” (Eater Los Angeles)
  3. CRE Keeps Wary Eye On California Election's Big-Ticket Items “California commercial real estate is keeping tabs on a number of items the state's voters will decide come November, ranging from changing local transfer tax hikes to the groundbreaking $10B-plus ‘split roll’ initiative.” (Bisnow)
  4. Co-working Firms Pivot to Enhanced Offerings “As some schools continue online learning, parents are now forced to consider what the future holds with another semester of home schooling on top of ever-changing work needs. With that conundrum in mind, WorkSuites, the co-working concept with a variety of officing options, recently launched a ‘Zoom Room’ at all 20 locations.” (GlobeSt.com)
  5. U.S. Real Estate Pain Leaves Foreign Investors Holding the Bag “The investors, who backed development deals through the U.S. Citizenship and Immigration Services’ EB-5 program, aren’t the only ones getting hammered by the Covid-19 pandemic, which has kept mall-goers, hotel guests and office workers home, pushing commercial-property owners into delinquency. But EB-5 investors, who cared more about coming to the U.S. than financial returns, have less leverage than most.” (Bloomberg)
  6. Brookfield Secures $1.8B Refi for One Manhattan West “Brookfield Property Partners (BPY) said Friday it had borrowed $1.8 billion, including $1.5 billion securitized as CMBS, to refinance One Manhattan West. It’s one of the largest single-asset, single-borrower CMBS transactions this year.” (Connect Real Estate)
  7. New Yorkers Are Fleeing to the Suburbs: ‘The Demand Is Insane’ “Since the pandemic began, the suburbs around New York City, from New Jersey to Westchester County to Connecticut to Long Island, have been experiencing enormous demand for homes of all prices, a surge that is unlike any in recent memory, according to officials, real estate agents and residents.” (The New York Times)
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish