- The office real estate crash will be so sharp and deep that Capital Economics thinks office values are unlikely to recover by 2040 “Now, the research firm suggests that the ‘35% plunge in office values we’re forecasting by end-2025 is unlikely to be recovered even by 2040,’ in a new report published on Thursday. That means that offices are unlikely to regain their peak values in the foreseeable future, or in the next 17 years, per Capital Economics. That’s because of dramatically lower demand following the shift to remote work that emerged from the pandemic. (Fortune)
- Non-Traded BDC Fundraising Continued to Surpass REITs in May “According to the latest report by investment bank Robert A. Stanger & Co., year-to-date 2023 alternative investment fundraising totaled $24.6 billion through May lead by non-traded real estate investment trusts at $7.3 billion, interval funds at $6.1 billion, non-traded business development companies at $5.0 billion, private placements at $2.5 billion and Delaware statutory trusts at $2.1 billion.” (The DI Wire)
- Only Zoning Reform Can Solve America’s Housing Crisis “Exclusionary housing practices are a linchpin in the architecture of educational inequality in America. Because 73% of American school children attend neighborhood public schools, where you live typically determines the qu ality of schooling.” (The Wall Street Journal)
- San Francisco Mayor Floats Teardown Of Westfield Mall, Advocates 'Reimagining' Of Downtown “San Francisco Director of Economic Recovery Initiatives Katherine Daniel said during a Bisnow panel last week that hosting events in the downtown corridor is another solution to drive traffic to a downtown area that has not recovered from the remote work phenomenon that arose during the pandemic.” (Bisnow)
- Commercial Real Estate’s Great Reset Kicks Off a Bad Debt Spiral “Owners of gleaming office towers in New York and London are walking away from their debt. Even as markets rally and investors are hopeful that rate increases will ebb, the trouble in commercial real estate could run through the global economy for years.” (Bloomberg)
- Office Landlords Losing 24 Percent of Rent to Concessions for Class A Space “Up to 24 percent of rent is being lost on average after concessions are accounted for in Class A buildings in Manhattan, while all asset classes are losing an average of 21.3 percent, according to report from Avison Young.” (Commercial Observer)
- Private vs Public Real Estate: The Case for Mean Reversion “Private real estate has outperformed public real estate by a significant amount over the past year. But, it could be an indication that a major mean reversion is imminent.” (Nasdaq)
- We Also Need to Amenitize Industrial. Start With the Break Room. “The stresses that can arise from working in a distribution center, including loud noises, harsh physical requirements, isolation from fellow associates, etc., can all be in part remedied through the implementation of break rooms.” (Commercial Property Executive)
- Scammers Target Stores With Bomb Threats, Seeking Bitcoin and Gift Cards “Hy-Vee, Food City and other retailers that have been targeted with similar threats said they take each incident seriously and report them to law enforcement. Walmart said it cooperates with local, state and federal investigators.” (The Wall Street Journal)
- Workforce housing developments still get 60-year tax exemptions “Previously, developers and property owners could enter PFC agreements to make a multifamily property tax exempt for 75 years or more in exchange for reserving 50 percent of the units as affordable for those making 80 percent of the area median income.” (The Real Deal)
- Inland Private Capital Bets on Healthcare, Self-Storage and Student Properties “The alternative property sectors the REIT intends to focus on have proved resilient through various economic cycles and outperformed in recent market turmoil, including the global financial crisis of 2008 and 2009 and the COVID-19 pandemic, according to Inland’s filing.” (CoStar)
- Mogul’s Manhattan Casino Pitch: A Location People Won’t Hate “In an interview on Thursday, Mr. Silverstein suggested his bid was largely selfless: New York State, he said, needs tax revenue to support the transit system on which New York City’s economy depends. Casinos can provide it, and as a major landlord, he is invested in the city’s future.” (The New York Times)
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