Articles of the week ending July 19th
WeWork reworks lease at 575 Lexington Avenue office to provide high-end lounge for the building
By TRD Staff, The Real Deal
WeWork is reworking its real estate portfolio post-bankruptcy by providing high-end work lounges for tenants in order to enhance the daily experience and drive future demand for office spaces.
Related, Wynn Find Casino Pitch Resistance on The High Line
By TRD Staff, The Real Deal
Friends of the High Line are pushing back against Related and Wynn’s development plans for a casino and skyscraper on the High Line, citing concerns about blocked views, gusty winds, and shadows.
Queens is NYC’s top outer-borough office market
By Bill Egbert, The Real Deal
Queens has emerged as the king of outer-borough office sales in recent years, with a higher deal volume than Brooklyn thanks to a boom in Hunters Point.
Neiman Marcus Space Converted to Wells Fargo Office
By Kathryn Brenzel, The Real Deal
Neiman Marcus’ Hudson Yards space is being converted into offices for Wells Fargo, with a new glass façade designed by architecture firm KPF.
Looking To Make Adaptive Reuse Projects Pencil In Today’s Market_ Start By Uncovering The Unknowns
By Emily DeNardo, Bisnow
The trend of adaptive reuse projects is on the rise due to factors such as sustainability, elevated vacancy rates, and cost savings, with a significant increase in office-to-residential conversions and a focus on uncovering unknown challenges prior to construction.
Gary Barnett’s Extell Refinances 570 Fifth Ave
By TRD Staff, The Real Deal
Extell Development secured $340 million in refinancing for its supertall development at 570 Fifth Avenue, with plans for a 78-story building featuring residential, office, and retail space.
Chetrit Group’s Meyer Chetrit Digs 65 Broadway out of Default
By Suzannah Cavanaugh, The Real Deal
Meyer Chetrit and Robert Wolf were able to bring the $151 million CMBS loan on 65 Broadway out of default by negotiating a rescue plan and bringing payments current.
RXR Explores Conversion Of 230 Park Following $670M Default
By Sasha Jone, Bisnow
RXR Realty is exploring converting a portion of the Helmsley Building on Park Avenue following a default on a $670M loan.
Prologis To Ramp Up Acquisitions, Says Market Has ‘Opened Up‘
By Emily Wishingrad, Bisnow
Prologis plans to significantly increase its acquisitions this year due to increased activity in the capital markets and hopes for interest rate cuts, with a focus on midsized acquisitions in the $100M to $200M range.
Placer.ai Office Index_ June 2024 Recap – Placer.ai Blog
By Lila Margalit & Samuel Roche
In June 2024, office visits nationwide broke a new post-pandemic record, with Miami and New York leading the way in office recovery.
Occupiers, Conversions, Bloomberg Give NYC Office Sales Market A Boost
By Ciara Long, Bisnow
The NYC office sales market is seeing increased activity from non-institutional buyers, such as end users, family offices, and high net worth individuals, taking advantage of opportunities presented by low prices and potential for conversion projects.
News _ Problem Office Loans Drag On Results of More Major Banks, Though Signs of Optimism Appear
By Andy Peters and Mark Heschmeyer
Large banks such as Bank of America and PNC Financial Services Group are facing challenges with delinquent office mortgages, leading to increased charge-offs, though signs of improvement are starting to emerge.
News _ Manhattan Office Leasing Posts Considerable Uptick at Midyear
By Victor Rodriguez, CoStar Analytics
Despite a considerable uptick in leasing activity and larger deal signings in midtown Manhattan, caution should be exercised as half-year new leasing totals are still significantly lower than those between 2017 and 2019.
‘We Won’t Have Enough Office Space’_ No Quality To Fly To As Construction Pipeline Runs Dry
By Ryan Wangman, Bisnow
The lack of new office construction and potential influx of tenants seeking top-tier Class-A space could lead to a significant imbalance in office supply and demand by 2025.
News _ New York Tenants Make it Clear_ They Want the Best Space
By Victor Rodriguez, CoStar Analytics
Manhattan office tenants are increasingly choosing high-quality office space, leading to a decline in availability rates for five-star buildings and a preference for new or recently renovated Class A buildings.