Articles of the week ending May 24th
Signature Bank’s Collapse Spiked Silverstein Office Vacancy
By TRD Staff, The Real Deal
Signature Bank’s collapse has led to a vacancy spike at Silverstein Properties’ 1177 Sixth Avenue, causing concerns for building ownership as tenants leave and vacancies increase.
Scott Rechler’s RXR Faces Foreclosure on Madison Ave Office
By Suzannah Cavanaugh, The Real Deal
RXR is facing foreclosure on their office building at 340 Madison Avenue due to default on a $315 million mortgage, despite identifying it as a “digital” property with a broken capital structure.
NYC Tech Workers Make $135,000 on Average, Can’t Afford Most Apartments
By Eliza Relman and Madison Hoff, Business Insider
Tech workers in New York City, despite earning high salaries, struggle to afford the majority of rental apartments due to rapidly rising housing costs outpacing wage growth.
New Yorkers can afford 5% of apartments on average salary
By Ella Ceron, Bloomberg, Crains New York Business
High rents and upfront costs in New York City mean that only 5% of apartments are affordable for the average New Yorker, exacerbating the city’s housing shortage and disproportionately impacting essential workers.
New York Studio Surge Stealing Spotlight From Hollywood
By TRD Staff, The Real Deal
New York’s studio surge is stealing the spotlight from Hollywood due to aggressive expansion supported by increased tax credits.
How Real Estate Became Hooked On Interest Rate Cuts
By Mike Phillips, UK Editor, Bisnow
The modern real estate industry has become heavily reliant on low interest rates for transactions, but as rates rise, investors will need to adjust strategies and focus on property fundamentals to generate returns.
Historic FiDi building 70 Broad owner Winta files Chapter 11
By Jonathan Randles, Bloomberg, Crains New York Business
The owner of a historic office building in the Financial District has filed for bankruptcy due to foreclosure and lack of tenants during the Covid-19 pandemic.
BI Collected Over 400 AI Salaries From 8 Wall Street Banks
By Alex Nicoll, Bianca Chan, and Emmalyse Brownstein, Business Insider
Wall Street giants like JPMorgan, Goldman Sachs, and Citi are aggressively competing for AI talent and offering high salaries to attract and retain top talent in the field.
What’s Happening to WeWork Around the U.S
By TRD Staff, The Real Deal
WeWork is cutting deals across its 170 U.S. locations as it navigates lease assumptions and rejections in the aftermath of its bankruptcy filing.
Owners Of 64 NYC Office Buildings Exploring Residential Conversions
By Sasha Jones, New York City, Bisnow
Owners of 64 NYC office buildings are exploring residential conversions through a city program to alleviate the housing crisis and stimulate the housing market.
Office Building Owners Look for Long-Term Leases
By Phil Mobley, CoStar Analytics, CoStar
Office building owners are looking for long-term leases in a market where tenants have the upper hand, with landlords using concessions to extract commitments from tenants.
Kushner and RFR land $480M Dumbo refi
By Erik Engquist, The Real Deal
Kushner and RFR successfully secured a $480 million refinancing package for their Dumbo office portfolio, allowing them to address expiring loans and potential default risks.
MTA drops OMNY contractor Cubic for commuter rail rollout _ Crain’s New York Business
By Caroline Spivack, Crain’s New York Business
The MTA has dropped Cubic as the contractor for integrating OMNY into the commuter rails due to cost overruns and delays, and has appointed Masabi to take over the project.
Hamptons Businesses Abandon Year-Round Dreams
By Sasha Jones, Bisnow
Businesses in the Hamptons are abandoning year-round operations due to high housing costs, lack of year-round clientele, and the return to pre-pandemic office routines, challenging retailers to hire and house staff, leading to difficulties in sustaining operations.
Fortunes diverge for Park Avenue office landlords
By Aaron Elstein, Crain’s New York Business
Park Avenue office landlords north of Grand Central are thriving with high demand and premium offerings, while those south of Grand Central are struggling with vacancies and defaults on loans.