- Simon: Malls don’t suck. In fact, they’re doing well “Simon Property Group CEO David Simon said on the REIT’s third-quarter earnings call that ‘many have tried to kill off physical retail real estate and in particular enclosed malls,’ but the company’s ample dividends paid to shareholders during the pandemic is a sign that it has become more ‘stronger and more profitable.’” (The Real Deal)
- As Housing Costs Soar, Co-Living Makes a Comeback “The business model behind co-living has evolved in the last decade, when start-ups like Starcity operated large portfolios of buildings converted into co-living facilities. Now, many operators want to be known less as landlords than as tech platforms that eliminate the headaches of cobbling together roommates and managing apartment budgets.” (The New York Times)
- Kroger-Albertsons Merger Draws Questions from Politicians, Workers “Some independent grocers and trade group officials said in recent meetings with White House officials and regulators that the combined entity would command greater leverage over suppliers, hurting competition in the industry. Company and union officials also met in Chicago last week to discuss the proposed merger.” (The Wall Street Journal)
- New York Office Giants Face Deteriorating Demand For Offices After Summer Of Hope “Overall, Manhattan had a down start to the fourth quarter in office leasing. Some 1.9M SF of leases were signed in the borough in October, according to Colliers, a 40% drop from September and a 41% drop year-over-year. The drop-off comes after the market saw a strong summer, when office owners and brokers said tenants were starting to get far more comfortable locking in long-term deals.” (Bisnow)
- Industrial Rents Continue to Climb at Robust Pace “Heightened demand for industrial space continued to put upward pressure on rents, and the trend is expected to continue, the latest CommercialEdge industrial report shows. What’s more, shrinking space availabilities and geographic constraints on new supply have further pushed growth forward.” (Commercial Property Executive)
- Struggling Philly real estate owner PREIT sells another mall to pay down its debt “The firm, known as PREIT and based in Center City, has been liquidating property as it restructures its mall businesses and proposes new uses, such as apartments or health-care facilities, for mall properties. The restructuring has gained some urgency with higher interest rates that drag on its performance through higher debt-servicing costs.” (The Philadelphia Inquirer)
- The Role Of Real Estate In A Family Office Portfolio During A Time Of Turbulence “At face value, the ecosystem of real estate and family offices can be roughly divided into two major camps. Those invested – oftentimes this is where a family office is linked to the real estate company – and those who are not. The second group could include tech entrepreneurs or simply other family offices that haven’t yet had the opportunity to get into the real estate space.” (Forbes)
- IKEA Asks Horror Game To Change So People Stop Comparing It To IKEA “In an unexpected move, furniture giant Ikea has sent a solo indie developer a cease and desist letter reviewed by Kotaku, demanding he make changes to his unreleased survival horror game set in an Ikea-like furniture store. Lawyers representing Ikea are claiming that the game commits trademark infringement because some press outlets have drawn comparisons between their official brand and the game.” (Kotaku)
- N.Y.C. Buildings Commissioner’s Phone Seized in Criminal Gambling Probe “Mr. Ulrich, who served as a special adviser to Mr. Adams before the mayor appointed him to the buildings post in May, has not been accused of any wrongdoing and it is unclear whether the criminal investigation is also focused on other people. A spokeswoman for the Manhattan district attorney’s office declined to comment.” (The New York Times)
- The Pros and Cons of Zero Cash Flow Transactions “It should be noted, however, that while you’ve effectively deferred your gain if you pursue this strategy, and you are therefore guaranteed no cash flow, you’ll still likely have taxable income generated by the zero. We’d refer to this as phantom income. That is to say: income on which you’ll be taxed, but no cashflow with which to pay it.” (Commercial Property Executive)
- Can Rising Rents or Property Growth Make Negative Leverage Worthwhile? “With negative leverage, the situation flips. Because of increased financing costs, increasing cap rates, and inflation driving up the cost of operations and putting tenants into worry over the cost of everything, negative leverage has returned.” (GlobeSt.com)
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