Articles of the week ending August 9th
Jay Suites buys 8 W. 38th St. in Manhattan _ Crain’s New York Business
By Eddie Small, Crain’s New York Business
Coworking firm Jay Suites has acquired the 12-story office building at 8 W. 38th St. for $35 million, retaining existing tenants while occupying the sole vacant floor, demonstrating ongoing growth in the flexible office space market despite challenges faced by larger companies like WeWork.
Hybrid Work Requires Seamless Connectivity. Here’s How To Make That A Reality
By Airwavz Solutions, Bisnow
Granite Properties prioritizes seamless in-building wireless connectivity through its partnership with Airwavz, enhancing hybrid work experiences across its office developments and ensuring reliable cellular service, which fosters productivity and attracts modern companies.
How Crowdfunding Could Open Syndicators Up To Fraud Lawsuits
By Suzannah Cavanaugh & Isabella Farr, The Real Deal
The rise of Regulation D as a fundraising tool for real estate syndicators has led to increased risks of fraud lawsuits as investors face losses from incomplete projects and mismanagement, prompting concerns about inadequate disclosures and the need for tighter regulations.
Healthcare Leads as US Hiring Slows, Job Cuts Decline in July, Durable Goods Orders Fall
By Lou Hirsh, CoStar News
U.S. job growth slowed in July with healthcare adding 55,000 jobs while overall job cuts decreased but remained high compared to last year, leading analysts to predict potential interest rate reductions by the Federal Reserve amid falling durable goods orders and mixed economic indicators.
Blackstone lease sparks strong July for Manhattan office market
By Eddie Small, Crain’s New York Business
In July, Manhattan’s office market saw a significant rebound with 3.9 million square feet leased, largely driven by Blackstone’s notable lease expansion, yet despite this progress, the market still faces challenges with over 41 million square feet of excess space.
BlackRock expands offices at 50 Hudson Yards
By Natalie Wong, Bloomberg
BlackRock is expanding its headquarters at 50 Hudson Yards by over 50,000 square feet as demand for premium office space in the city increases, with other firms like Oxford Properties also relocating to the area, reflecting a trend towards seeking well-located, amenity-rich workplaces despite challenges in Manhattan’s office market.
Columbia Property Trust Eyes 799 Broadway Short Sale
By Rich Bockmann, The Real Deal
Columbia Property Trust is seeking to sell its new 12-story office building at 799 Broadway in Greenwich Village for $250 million, despite a $270 million mortgage, amidst a challenging office market, with the property currently 71% occupied.
News _ Manhattan’s Office Activity Ticks Higher
By Andria Cheng, CoStar News
Manhattan’s office activity has improved, with average visits reaching 77% of pre-pandemic levels in June, particularly in top-tier buildings and midtown, while nationwide trends also show a rise in return-to-office rates and improved leasing activity with higher rents.
Vornado Agrees to Masterlease 770 Broadway
By Kathryn Brenze, The Real Deal
Vornado Realty Trust has reached a handshake deal for a long-term master lease of over 1 million square feet at 770 Broadway after Meta downsized its office space in the building.
Manhattan Office Visits Reach Highest Level Since Pre-Pandemic
By Paul Bubny, Connect CRE
The latest REBNY report indicates that Manhattan office visitation rates in June 2024 reached 77% of pre-COVID levels, marking a year-over-year increase of five percentage points, and also aligning with Avison Young’s findings that Manhattan office utilization is significantly higher than the national average.
KPG Funds Expects 50 Rise in NYC CRE Prices – Connect CRE
By Paul Bubny, Connect CRE
KPG Funds forecasts a 50%-60% increase in NYC commercial real estate prices due to declining interest rates and a growing demand for luxury properties, driven by limited availability and office-to-residential conversions.
Vornado Agrees to Masterlease 770 Broadway
By Kathryn Brenzel, The Real Deal
Vornado Realty Trust has reached an agreement for a long-term master lease of over 1 million square feet at 770 Broadway, following Meta’s reduction of its office space in the building, while also retaining Wegman’s grocery store lease and reporting significant office leasing activity in New York.
By Mark Heschmeyer, CoStar News
A New York office tower faces refinancing challenges due to 89% of its leases expiring in the next four years, S&P downgraded ratings on a CMBS deal tied to Google’s lease expiration in 2026, while Fannie Mae and FEMA’s lease renewals provide some stability for bondholders in D.C. properties.