- Vornado Writes Down Value of its Portfolio by $600M “One of New York City's largest owners of commercial real estate estimates the value of some of its properties has dropped by more than half a billion dollars. Vornado Realty Trust disclosed in a regulatory filing Tuesday night that it expects to take a $600M impairment charge on its portfolio, $480M of which is related to its ownership stake in a large portfolio of Times Square and Fifth Avenue retail properties.” (Bisnow)
- BXP CEO Owen Thomas: Real Estate Is ‘Currently in a Recession’ “While macroeconomic indicators have shown mixed signals about whether the U.S. is entering a recession, the head of the country's largest publicly traded office landlord said the state of the commercial real estate industry is clearer. ‘Notwithstanding the running debate on whether the U.S. economy will experience a hard or soft landing, commercial real estate markets are currently in a recession,’ BXP CEO Owen Thomas said Wednesday morning on the REIT's fourth-quarter earnings call.” (Bisnow)
- REITs Lead Charge to Consolidate Casino Real Estate “Visitor volume in Las Vegas grew nearly 5 percent in November to nearly 3.3 million vs. the prior year, for example, and along the Strip, revenue per available room (RevPAR) surged 27 percent to more than $167 over the same period, according to the Las Vegas Convention and Visitors Authority. Against this backdrop, the two most prominent net-lease investors in gaming real estate– Gaming & Leisure Properties and VICI Properties, both REITs– maintained their steady pace of acquisitions throughout 2022. The activity was part of a trend in which gambling operators executed sale-leasebacks to raise growth capital.” (Commercial Property Executive)
- Nation’s Industrial Market Sets Record with 450 Million Square Feet of New Space Delivered “The U.S. industrial market saw record new deliveries in 2022, with 450 million square feet of space hitting the market by the end of the year and another 713 million square feet under construction, according to Commercial Edge’s January industrial report. Although record levels of new industrial space were delivered last year, the pace of development was not enough to keep up with demand, and the average vacancy rate for the top 30 markets decreased to 3.9%.” (Benzinga)
- Google Gains Ownership of Some Wild West-Era San Jose Parcels “Google has taken ownership of some small downtown San Jose parcels that date back to the era of the Wild West.” (The Mercury News)
- Bed, Bath & Beyond Misses Payments as it Weighs Chapter 11 “Bed Bath & Beyond Inc. missed interest payments on its bonds, a week after its bank lenders sent the company a default notice because it was overdrawn on its credit lines. The home-goods retailer failed to pay more than $28 million on three tranches of notes totaling roughly $1.2 billion due on Feb. 1, a spokeswoman for the company confirmed Wednesday. Last week Bed Bath reported that JPMorgan Chase & Co. determined the company defaulted after it failed to repay amounts it borrowed on its revolving credit lines.” (The Wall Street Journal)
- The Lego Approach to Building the World’s Biggest Projects “Spoiler alert! Big things get done very badly. They cost too much. They take too long. They fall too short of expectations too often. This is what Dr. Flyvbjerg calls the Iron Law of Megaprojects: ‘over budget, over time, under benefits, over and over again.’ The Iron Law of Megaprojects might sound familiar to anyone who has survived a home renovation. But when Dr. Flyvbjerg dug into the numbers, the financial overruns and time delays were more common than he expected. And worse. Much worse.” (The Wall Street Journal)
- CRE Companies That Allow Remote Work Are Likely Seeing Significant Benefits “If you’re in the office sector of CRE, you probably don’t want to hear about work from home. The asset class has taken a big hit, with national occupancy running between 40% and 45%, according to Deloitte Consulting — down big time from pre-pandemic’s 61% to 65%. The fewer people regularly in an office, the more a CEO and CFO have to consider whether keeping all the space they have is worth all the money it costs. But consider for a moment the question of working from home in a different light. Not what it means for office owners and operators, but what it might mean for companies themselves.” (GlobeSt.com)
0 comments
Hide comments
