Articles of the week ending June 7th
Shareholders Revolt Against CEO Salaries
By TRD Staff, The Real Deal
Shareholders are revolting against real estate CEO salaries due to falling earnings and shrinking dividend payouts, but company boards may choose to ignore the votes.
Researches Raise Concern of Bank Exposure to REITs
By TRD Staff, The Real Deal
The study suggests that banks’ exposure to commercial real estate is significantly higher when considering indirect REIT lending, which may pose a greater systemic risk than previously thought.
Office workers prioritize easy commutes in return-to-office push
By Eddie Small and Caroline Spivack, Crain’s New York Business
Workers are resisting returning to the office primarily due to the burden of long commutes and are seeking shorter, more convenient options.
NYC gets 150K applications in 12 hours for Section 8 vouchers
By Laura Nahmias, Bloomberg
Over 150,000 households in New York City applied for affordable housing vouchers in just 12 hours, with a plan to add 200,000 households to the waiting list for a Section 8 lottery in August.
Massive Bloomberg lease buoys Manhattan’s May office market
By Eddie Small, Crain’s New York Business
The Manhattan office market saw a boost in May due to Bloomberg’s lease extension at 731 Lexington Ave, but overall leasing activity and availability rates varied across different neighborhoods.
Here’s What It Costs To Build the Office Tenants Say They Want
By Andy Peters, CoStar News
Office renovation costs are expected to rise by an average of 2% to 4% this year in US markets, with Detroit, Miami, and Dallas projected to see slower increases compared to the national average.
Co-Living Firm Common Files for Bankruptcy
By TRD Staff, The Real Deal
Common, once a top player in the co-living space with over 5,200 units and $110 million in venture capital, has filed for Chapter 7 bankruptcy and will liquidate its assets to repay creditors.
Charles Cohen’s Properties Could Be In Largest UCC Auction Ever
By Suzannah Cavanaugh & Keith Larsen, The Real Deal
Billionaire developer and film producer Charles Cohen is facing a potential foreclosure on a $534 million loan after defaulting on payments to his lender.
Century-Old Manhattan Office Building To Be Converted Into Self-Storage Facility
By Andria Cheng, CoStar News
A century-old Manhattan office building in Tribeca is being converted into a self-storage facility due to high demand and undersupply in the area.
After Big 2023, Law Firms Leasing Even More This Year
By TRD Staff, The Real Deal
Law firms are continuing to lease office space at a strong pace, surpassing pre-pandemic levels, with a focus on high-quality and new spaces, while some firms are also downsizing and relocation activity has slowed.
CRE Mortgage Delinquencies Increase in Q1
By Paul Bubny, Connect CRE
Commercial mortgage delinquencies increased in the first quarter of 2024, driven by banks designating non-multifamily loans as ‘nonaccrual’.
Tishman Speyer Kills Office Project in DTLA’s Arts District
By Dana Bartholomew, The Real Deal
Tishman Speyer has abandoned its 10-story office project in DTLA’s Arts District due to cooling office market conditions, but remains active in the greater Los Angeles market with ongoing projects and acquisitions.
Revel ditches fixed hourly rates for independent contractors
By Natalie Lung, Bloomberg
Revel is transitioning to a gig-work model for its drivers, offering more flexibility and control while focusing on building EV charging infrastructure and expanding its ridehailing fleet to accommodate the growing demand for electric vehicles in major cities.
Kathy Hochul Kills Congestion Pricing, Citing Empty Offices
By Erik Engquist, The Real Deal
Governor Kathy Hochul cancels congestion pricing in Manhattan just 25 days before its scheduled start, citing concerns about low office attendance and potential negative impacts on the economy and environment.
Bloomberg buys Madison Avenue building for $560M
By JULIANNE CUBA, Crain’s New York Business
Bloomberg’s media company purchased a prime Upper East Side building for $560 million, potentially displacing tenants such as the contemporary art gallery Gagosian.
Philly’s One-Time Most Expensive Office Building Fails To Sell At Sheriff’s Auction
By Sonya Swink, Bisnow
A Philadelphia office building that set a record for the most expensive sale failed to attract any bids at a sheriff’s auction due to a significant debt load.