Articles of the week ending November 15th
Real-Estate Scions Are Breaking a Cardinal Rule_ Never Sell
By Peter Grant, Bloomberg
Multigenerational real estate families in New York City, traditionally committed to never selling their properties, are now facing the harsh realities of a declining office market and are making emotionally difficult decisions to sell long-held assets to ensure their financial viability for future generations.
NYC Top Office Leases October 2024
By Lucas McGill, The Real Deal
Bloomberg, Google, and Blue Owl Capital secured the largest office leases in New York City last month, highlighting a trend of major corporate renewals and expansions.
News _ Residential development in Manhattan’s Financial District reaches construction milestone
By Andria Cheng, CoStar News
A luxury residential development by Moinian Group in Manhattan’s Financial District, featuring 250 units, has reached a construction milestone and is expected to be completed in early 2026, highlighting the area’s transformation into a livable neighborhood amidst high rental demand.
Loan backed by high-profile Times Square office building shows sign of distress
By Andria Cheng, CoStar News
A commercial mortgage-backed securities loan for the Times Square office building at 1515 Broadway is showing signs of distress as it moves to special servicing, with repayment concerns linked to current lending conditions and the potential risks posed by its major tenant, Paramount Global.
Alexandria Warns Life Science Demand Could Dim SPARC
By Kathryn Brenzel, The Real Deal
Alexandria Real Estate Equities expressed concern over potential declines in demand for life science offices at the Kips Bay SPARC project, urging the city to consider flexibility for alternative uses, including housing.
U.S. Office Edges Closer To Recovery Than At Any Point Since Pandemic’s Onset
By Noah Zucker, Bisnow
The U.S. office market is showing signs of recovery, with positive net absorption and increasing lease rates, alongside a surge in adaptive reuse projects converting outdated office buildings into residential spaces.
Savanna faces possible foreclosure at Urban Outfitters site 521 Fifth Ave. _ Crain’s New York Business
By C.J Hughes, Crain’s New York Business
Savanna is facing potential foreclosure on its mixed-use tower at 521 Fifth Ave. due to a default on a $242 million loan, amid ongoing struggles with occupancy and debt across multiple properties.
Rezoning Could ‘Breathe New Life’ Into Midtown South, But Only If Developers Can Justify The Costs
By Sasha Jones, Bisnow
The proposed rezoning of Midtown South aims to transform underutilized office spaces into residential units, but significant economic and regulatory challenges may hinder its effectiveness and ability to revitalize the area.
NYC hotels may avoid conversions as migrants leave
By C.J Hughes, Crain’s New York Business
As the flow of migrants into New York decreases, many hotels previously used for shelter may revert back to conventional hospitality rather than being converted into apartments, despite the city’s ongoing housing needs.
New York’s extreme fire season fueled by climate change
By Caroline Spivack, Crain’s New York Business
New York City is experiencing an unprecedented fire season fueled by climate change and a historic drought, prompting officials to implement burn bans and urge water conservation.
New York City developing incentives for demolition of obsolete office towers
By Aaron Elstein, Crain’s New York Business
The Adams administration is collaborating with the Real Estate Board of New York to create incentives for demolishing obsolete office towers to replace them with more viable developments, amid rising vacancy rates and falling rents in Manhattan’s office market.
Hochul resurrects congestion pricing, targets January launch
By Caroline Spivack, Crain’s New York Business
Governor Kathy Hochul has revived New York’s congestion pricing plan, set to launch on January 5, 2024, with reduced toll rates aimed at generating necessary funding for the MTA while addressing concerns from drivers and facing legal and political opposition.
Dursts Look To Sell 675 Third Avenue
By Rich Bockmann, The Real Deal
The Durst Organization is seeking over $100 million for the 32-story office building at 675 Third Avenue, positioning it as a prime candidate for residential conversion amid a trend of similar sales in the area.