- Real Estate Deal-Making Slows as Bank Lending Tumbles “Wall Street is tightening the loan spigot on the commercial real-estate industry, which is putting a squeeze on deal making and values. Banks are lending less and charging higher interest rates for the loans they make to owners and buyers of office buildings, shopping centers and other commercial real estate. The tightening is a response to the sharp increase in interest rates this year triggered by high inflation as well as concerns of a possible recession that would lead to an increase in defaults.” (The Wall Street Journal)
- Need for Speed Spurs Demand for Move-In Ready Buildings “Suburban spillover has long been chewing away at the bucolic countryside around Cincinnati. Twenty-five years ago, the growth was powered by affordable housing and award-winning schools. But, as the economy has changed, so have the demands for space. Part of West Chester, a town about 18 miles north of Cincinnati, is bound by three interstate highways, which has made it a coveted logistics hub, and developers have taken note: Not long ago, seven acres of farmland there were targeted for repurposing by NorthPoint Development.” (The New York Times)
- Will Increased Borrowing Costs Dent Sky-High Apartment Valuations? “n May, apartment properties continued to trade for prices never seen before, but, as interest rates rise, some observers wonder how sustainable these sky-high valuations can really be. The Real Capital Analytics Commercial Property Price Indices (CPPI), a gauge of apartment prices, jumped 23.7% year over year in June, according to MSCI.” (Multifamily Dive)
- New York Renters Are Now Paying the Price for the ‘COVID Discount’ “For comfort at the beginning of the pandemic, Cathy Linh Che turned to cooking her mother’s Vietnamese recipes. She could easily find all the ingredients she needed in Manhattan’s Chinatown. But the subway ride from her Jackson Heights, Queens, apartment was almost an hour. So when a modern, two-bedroom apartment with exposed brick walls and stone floors became available to rent for about $1,700 a month in the nearby Two Bridges neighborhood, she jumped at the opportunity.” (The New York Times)
- Study: Nearly 60% of Small Retail Businesses at Risk of Closing “The summer of 2022 isn’t shaping up as a particularly good one for most small businesses, particularly retail. Nearly half (47%) of small business owners said their businesses are in jeopardy of closing by the fall, according to a survey by Alignable, the largest online referral network for small businesses. The figure is up 12% from last summer, when 35% of businesses said they were on the brink. The poll was conducted among 4,392 small business owners in June and July.” (Chain Store Age)
- What If the Suburbs Were Just a First Draft? “This desire to be near things is as likely to lure millennials leaving the city to seek less expensive housing as it is immigrants coming from countries with more traditional urbanism, and remote workers looking for amenities they used to find near their urban offices. What makes suburbs desirable for many people today is not what Americans traditionally associate with ‘the suburbs.’ It’s vibrant dining scenes — according to the New York Times, some of the best in the country — nightclubs, taller buildings, and walkable developments.” (Vox)
- Ultra-Fast Delivery Was All the Rage During the Pandemic. Now These Start-Ups Are Trying to Survive. “In early March, after two ultra-fast delivery startups shut down in New York City in a single week, a self-proclaimed pioneer in the space appeared to see an opportunity for some media attention. Getir, a Turkish startup founded in 2015, had recently raised $768 million in funding valuing it at $11.8 billion, "cementing its position as a decacorn" even in the face of a "volatile" market, according to a representative for the company at the time. The representative suggested a reporter discuss with Getir's CEO the future of the industry amid the ‘disappearance’ of two smaller competitors.” (CNN Business)
- LA County Looking at New Mask Mandate for Retailers, Indoor Venues “Los Angeles County may once again require masks worn inside offices, shops, restaurants, bars, manufacturing facilities, schools and indoor events. But business leaders are crying foul. If Covid-19 transmission levels remain high, a universal indoor mask mandate could be reimposed as early as July 29, the Long Beach Press-Telegram reported.” (The Real Deal)
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