Articles of the week ending July 26th
SL Green plans to open a Summit observatory in Paris _ Crain’s New York Business
By Aaron Elstein, Crain’s New York Business
SL Green plans to open a Summit observatory in Paris to diversify its revenue streams beyond Manhattan’s office buildings, which predominantly comprise its portfolio, while already seeing success with its New York location generating significant revenue.
News _ Speculative Office Property on Manhattan’s Billionaires’ Row Begins Leasing
By Andria Cheng, CoStar News
A 30-story, 260,000-square-foot speculative office tower at 125 W. 57th St. on Manhattan’s Billionaires’ Row, designed by FXCollaborative and developed by Alchemy-ABR and Cain International, is set to lease premium office and retail space with amenities, highlighting a strong demand for high-end office properties in the Plaza District.
News _ New York Tenants Make it Clear_ They Want the Best Space
By Victor Rodriguez, CoStar Analytics
Manhattan office tenants are increasingly favoring high-quality office spaces, leading to a decline in availability for five-star and four-star buildings while availability in three-star buildings has risen significantly.
News _ Lower Manhattan’s Battery Park City Authority To Invest $500 Million in Affordable Housing
By Andria Cheng, CoStar News
The Battery Park City Authority is investing $500 million in affordable housing across NYC by allocating excess revenue from commercial properties, contributing to the Affordable Housing Accelerator Fund and supporting projects like the construction of 5 World Trade Center.
Trillion-Dollar AI Push Spurs A Booming CRE Sector, But Skeptics Warn It May Be A Bubble
By Dan Rabb, Bisnow
There are growing concerns that the massive investment by Big Tech in AI infrastructure may lead to an unsustainable “AI bubble” akin to the dot-com boom, as skeptics argue that the projected returns and transformative applications of AI may not materialize, despite the bullish stance of industry leaders and large institutional investors.
RFR Nabs Maturity Extension on 285 Madison loan
By By Suzannah Cavanaugh, The Real Deal
Aby Rosen received a short-term extension on his troubled $222 million loan for 285 Madison Avenue due to rising interest rates, falling property values, and increased expenses, while also managing additional debts totaling $462 million against a property recently valued significantly lower than its original appraisal.
Cold Storage REIT Lineage Launches IPO at $19B Valuation
By Joe Palmisano, Connect CRE
Lineage Inc., the world’s largest cold storage REIT, is launching its IPO with a valuation of approximately $19 billion, offering 47 million shares priced between $70 and $82 each, with proceeds aimed at retiring debt and funding employee grants, while managing a significant portfolio of temperature-controlled facilities across several regions.
Blackstone Mortgage REIT Cuts Dividend As Commercial Property Stress Mounts
By Ryan Wangman, Bisnow
Blackstone Mortgage REIT cut its dividend by 24% in response to increasing defaults and difficulties in the commercial property market, saving approximately $100 million annually, while CEO Katie Keenan emphasized the need for sustainable returns and capital allocation for growth.
Blackstone Mortgage REIT Cuts Dividend As Commercial Property Stress Mounts
By Ryan Wangman, Bisnow
Blackstone Mortgage REIT reduced its dividend by 24% to address rising defaults in the commercial property market, saving around $100 million annually, with CEO Katie Keenan highlighting the importance of sustainable returns and strategic capital allocation for growth.
Prime Office Rents Surpass Class A by More Than 30% Globally
By Paul Bubny, Connect CRE
Global prime office rents are averaging 31.4% higher than Class A rents, with North America leading at a 62.5% premium, driven by strong demand for prime spaces.
New York Red Bulls Training Complex Kicks Off Construction For 2026 World Cup
By Elizabeth Reyn, Bisnow
The New York Red Bulls are constructing a state-of-the-art $96M training complex in Morris Township, NJ, in preparation for the 2026 World Cup, featuring extensive preconstruction planning by March Construction to ensure timely completion and cost-effectiveness.
Investors Partner To Buy Icon, New York’s Largest Parking Company
By Andria Cheng, CoStar News
The Broe Group and Hudson Valley Parking Trust have purchased Icon Parking, New York City’s largest parking company, with plans to expand its operations and increase its annual transaction volume exceeding 2 million.
Future Of Federal Office Use Still Uncertain As Election Approaches
By Emily Wishingrad, Bisnow
The future of federal office space remains uncertain as agencies grapple with hybrid work policies, employee return rates, and potential shifts in demand based on the upcoming presidential election, with current utilization rates significantly low and decisions on real estate leases stagnating.
Empire State Realty To Buy Brooklyn Retail For $195M
By Sasha Jones, Bisnow
Empire State Realty Trust is acquiring several retail properties in Williamsburg, Brooklyn for $195 million to diversify its portfolio and capitalize on the neighborhood’s growth, despite a recent decline in net income and cash flow.
City Of Yes Could Eliminate Longstanding Height Restriction. Will Developers Act
By Sasha Jones, Bisnow
New York City’s potential repeal of the “sliver law” could enable the construction of narrower buildings, unlocking 51 million square feet for nearly 76,000 new housing units, addressing the ongoing housing crisis despite concerns about feasibility and affordability.
Brookfield Closes on $1.3B Light Industrial Portfolio _ Connect CRE
By Paul Bubny, Connect CRE
Brookfield Asset Management has acquired a 14.6 million-square-foot light industrial portfolio valued at $1.3 billion, comprising 96% occupied assets in key U.S. markets, reflecting their confidence in the logistics sector and commitment to enhancing sustainability and efficiency.
Prologis Puts Power First As It Prepares $8B Data Center Push
By Matt Wasielewski, Bisnow
Prologis plans to invest $7B to $8B over five years to establish its data center business, focusing on energy procurement and production to meet increasing power demands driven by technology and artificial intelligence, while leveraging its existing real estate and relationships in the industry.
Odds rise for a Times Square casino as Hudson Yards’ fall
By Nick Garber, Crains New York Busness
Community opposition to the Hudson Yards casino proposal may strengthen the Times Square bid led by SL Green Realty, which envisions a conveniently located casino to boost pedestrian traffic and has garnered significant support, although it faces growing resistance from various local groups, including the influential Broadway League.