Articles of the week ending September 13th
U.S. Inflation Eases to Lowest Level in Three Years
By Joe Palmisano, Connect CRE
U.S. inflation has eased to its lowest level since January 2021, with the consumer price index increasing by 0.2% in August and year-over-year inflation at 2.5%, leading to strengthened arguments for a modest quarter-point interest rate reduction by the Federal Reserve.
Office Leads Q2 Increase in Commercial Mortgage Delinquencies
By Paul Bubny, Connect CRE
In the second quarter of 2024, commercial mortgage delinquencies rose significantly, particularly in CMBS loans which saw a delinquency rate of 4.82%, while office loans remained a primary focus, highlighting the diverse challenges within the commercial real estate market.
IBM bets the future of the workplace is up on the roof
By Andra Cheng, CoStar News
IBM’s new Manhattan office features New York’s largest commercial terrace, emphasizing outdoor workspaces and collaborative environments to attract talent as part of a strategy to enhance employee engagement post-pandemic.
An Industry On The Ropes_ CRE Hopes A Rate Cut Will Get It Back On Its Feet
By Matt Waslelewski and Ryan Wangman, Bisnow
The commercial real estate (CRE) industry, battered by the pandemic and successive rate hikes, is hopeful that upcoming Federal Reserve rate cuts will provide relief and stimulate new investment activity, although challenges such as changing consumer behavior and economic uncertainties remain.
What will falling interest rates mean for real estate_ Here’s what history tells us
By Ryan Ori, CoStar News
Falling interest rates may initially have a muted effect on real estate activity, but historically they can signal economic shifts that could lead to increased opportunities for cash-rich investors while navigating potential recessionary pressures.
Prince Building at 568 Broadway faces big office vacancies and an expiring mortgage
By Aaron Elstein, Crain’s New York Business
The Prince Building in SoHo, while boasting valuable retail tenants, faces significant challenges with rising office vacancies and impending mortgage issues due to the departure of its largest tenant, prompting its owners to consider costly renovations to attract new tenants.
Former HSBC tower in Manhattan proves it has no problem attracting new tenants
By Andria Cheng, CoStar News
The former HSBC tower in Manhattan, now known as 10 Bryant Park, is successfully attracting new tenants, as evidenced by private equity firm 17Capital’s relocation from One Vanderbilt to a full floor of the building.
Flatiron Equities, Mequity Turning Midtown Office into Storage
By Elizabeth Cryan, The Real Deal
Developers Flatiron Equities and Mequity Companies are converting a Class C office building at 152 West 36th Street in New York City’s Garment District into a 16-story self-storage facility, expected to open in spring 2026.
Bushburg Closes 80 Pine Street Purchase
By Rich Bockmann, The Real Deal
Bushburg has acquired the half-empty 80 Pine Street office building for $160 million, with potential plans for residential conversion amidst a new tax incentive program for developers in Manhattan.
Andrew Farkas’ Island Capital Nabs Former Blackstone Portfolio
By Suzannah Cavanaugh, The Real Deal
Andrew Farkas’ Island Capital acquired a distressed New York multifamily portfolio from Blackstone and secured a $270 million loan to address existing debt issues, betting on potential future interest rate cuts.
Amazon Calls Employees Back to the Office by Jan. 2, 2025
By Paul Bubny, Connect CRE
Amazon will require corporate employees to return to the office five days a week starting January 2, 2025, to strengthen its corporate culture and maintain agility.