- Penn Station Plan Makes a High-Stakes Bet on the Future of Office Work “In a bid to reshape Midtown Manhattan, Gov. Kathy Hochul and New York State officials are pushing ahead with one of the largest real estate development projects in American history: 10 towers of mostly offices around Penn Station, the busiest transit center in the country. The buildings would help pay for the renovation of the dreary underground station, the reason officials have said they are seeking the additions to the skyline. But the plan is moving forward amid severe uncertainty gripping the office market.” (The New York Times)
- Deal for Office Space Near Big U.S. Cities Bets on Suburban Lifestyle, Remote Work “One of the world’s biggest sovereign-wealth funds and its U.S. partner are buying a majority stake in 53 suburban office buildings in a deal valuing the properties at $1.1 billion, a major bet that remote work will boost demand for workplaces close to residential areas. Singapore’s GIC Pte. Ltd. is investing in the buildings alongside Workspace Property Trust, a privately held commercial real-estate firm based in Boca Raton, Fla., according to a person familiar with the matter. The deal will nearly double Workspace’s holdings to around 18 million square feet. Many of the newly acquired buildings are clustered around Atlanta, Dallas and the San Francisco Bay Area.” (The Wall Street Journal)
- How One Debt Lender Plans to Play the Second Half “It was a good first half of 2022 for debt borrowers, at least if they were clients of PGIM Real Estate. The real estate debt business of PGIM completed $2.1 billion in core plus and high-yield financing on behalf of investors in its real estate debt strategies for H1. It was a strong performance for the real estate manager, and John Jacobs, managing director, Core Plus Debt at PGIM Real Estate, expects to see more successes in the second half of the year. ‘We view this environment as an opportunistic time to make good loans, so we continue to look for attractive deals,’ he tells GlobeSt.com.” (GlobeSt.com)
- U.S. Cities Where Home Prices Are Falling Fast “Given rising mortgage rates that spiked to their highest levels since the 2008 housing crisis and fears of a recession, the real estate market has been preparing for a slowdown. Many experts are cautioning sellers to say goodbye to the pandemic housing boom and welcome an era of fewer bidding wars and higher inventory. That said, national home prices are expected to increase 4.3% between June 2022 and June 2023, according to CoreLogicCLGX 0.0%. Still, some areas across the country remain particularly vulnerable to falling home prices.” (Forbes)
- Medical Office Sector Resists Adversity “Despite reduced transaction volume, the U.S. medical office sector is showing resilience in the face of economic uncertainty. ‘Health-care (real estate) is recession-proof and Covid-proof. Doctors still need a physical location to see their patients,’ Darren Lizzack, vice president with NAI James E. Hanson told Commercial Property Executive.” (Commercial Property Executive)
- Workers Want to be in the Office Five Days a Week or Not at All. What Does That Mean for S.F.? “The future of remote work could feel familiar, and research is showing most workers either want to be at home or in the office all the time.” (San Francisco Chronicle)
- Historic Shift from Buying to Renting Spurs RentSpree’s $17.3 Million Series B “As home-buying becomes more unaffordable for many Americans, the market shift to renting became that much more evident on Monday as RentSpree, an end-to-end rental management software provider, announced that it had closed $17.3 million in Series B financing. That brings the proptech startup’s total amount raised to nearly $28 million. The funding round was led by Green Visor Capital, a fintech venture capital firm, joined by new investors Rally Ventures, the California Association of REALTORS® (CAR), Venture MLS, ECG-Research, KEC Ventures, and Gaingels, with participation from existing investors 645 Ventures and Vesta Ventures.” (Commercial Observer)
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