- JCPenney owners offer to buy archrival Kohl’s for $8.6B “Under the proposal, shopping-mall giant Simon Property and Canada-based Brookfield Asset Management — which together scooped JCPenney out of bankruptcy in December 2020 — have offered to acquired Kohl’s for $68 a share, according to sources close to the talk.” (New York Post)
- Blackstone to Buy PS Business Parks in $7.6 Billion Deal “Blackstone Inc. said it has agreed to buy PS Business Parks Inc. in a deal valued at $7.6 billion. Blackstone said it would pay $187.50 for each outstanding share of PS Business Parks in an all-cash deal. The purchase price marks a premium of about 15% over the volume-weighted average share price of PS Business Parks’ stock over the last 60 days, Blackstone said. PS Business Parks, a real-estate investment trust, owns, operates and develops commercial suburban properties mostly in California, Miami, Texas and Northern Virginia.” (The Wall Street Journal)
- Amazon Crushes Building Materials Supply Chain, Sends Shockwaves Through Construction Industry “Amazon’s growth has disrupted countless industries. A February 2021 report by Colliers said the company's rapid-fire acceleration of warehouse construction activity exerted significant pressure on the supply chain for building materials. The report pointed to an unnamed U.S. steel producer that said orders for construction projects related to Amazon comprised about 33% of its national capacity, which had pushed lead times to a 20-year high.” (Bisnow)
- The Google Effect: What Happens When the Giant Moves In? “Nearly 12 years ago, Google loudly announced its permanence in New York City by paying nearly $1.8 billion for 111 Eighth Avenue, one of the earliest signals of big technology companies’ growing appetite for office space in the Big Apple. At that time, the deal was the second-largest full single-asset sale ever in New York City. Since the December 2010 purchase of the 2.9 million-square-foot building — a former transit authority hub for train maintenance and other operations — that area of Manhattan where Chelsea meets the Meatpacking District has become a veritable Googleplex.” (Commercial Observer)
- Gateway Metros Are Leading in These Key Multifamily Metrics “Gateway metros have posted the biggest increases in occupancy in recent months, with New York, Los Angeles and Chicago challenging the Sun Belt and Dallas-Fort Worth, Houston and Phoenix. Rents are above pre-pandemic norms in cities like Chicago, which saw a 17.6% uptick in early 2022,as well as Boston, Washington, D.C., Los Angeles and parts of the Bay Area, all of which posted year-over-year pricing increases in the 10% to 18% range.” (GlobeSt.com)
- Self-Storage Rents Remain Slow, But Solid “Although self storage fundamentals will remain healthy, the sector is expected to return to more normal seasonal growth, since increases won’t be able to match the record gains seen in 2021. Street rates for 10×10 non-climate-controlled units dropped 180 basis points to 5.8 percent from February to March, while rates for same-size climate-controlled units fell 80 basis points to 6.6 percent over the same time frame.” (Commercial Property Executive)
- A Senior Care Charity Sold its Property for a Fraction of its Worth. Its Leaders’ Friends Got Rich “The house on the corner of Oak Hill Drive and Boyle Avenue – with its bunches of bougainvillea crawling along a chain-link fence – looks like any another cozy single-family home in Escondido. But 1385 Oak Hill Dr is more than it seems. Until recently, a charity owned the property. Two local developers, both friends of the charity’s executives, bought the home in quick succession and each sold it for hundreds of thousands of dollars more than they paid. The story of that charity, Affordable Senior Housing Foundation, and 1385 Oak Hill Dr reveals the sometimes short distance between for-profit and nonprofit companies – and the questions that can arise when large profits result from the company’s transactions.” (Voice of San Diego)
- Facebook Is Opening its First Showroom to Sell VR Headsets “Meta, formerly known as Facebook, is opening its first retail location in an effort to sell people its Oculus virtual reality headsets and its idea of the “metaverse,” the company announced Monday. But it’s not a huge step into retail. Unlike Apple and other tech companies that have stores in heavy foot-traffic areas like shopping malls, the Meta Store will open on May 9 at the company’s Burlingame, Calif., campus.” (CNBC)
- It’s Time CRE Got Serious About Cybersecurity “Commercial buildings are substantially affected by the systems in them, such as HVAC, elevator, lighting, parking, metering, physical access control and many others. When these systems are shut down or manipulated, they can cause serious problems that go well beyond discomfort.” (Commercial Property Executive)
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