- Canceled Contracts Pile Up as Real Estate Buyers, Lenders Reckon with Rising Rates “Value uncertainty and loan pricing are putting the kibosh on some CRE deals.” (Bisnow)
- Why Foreign CRE Investors are Undeterred by U.S. Economic Concerns “After the high volume of the previous quarter, foreign investment in U.S. CRE moderated during the first quarter of this year, according to Darin Mellott, CBRE’s senior director of capital markets research. For historical perspective, he continued, the first quarter of 2022 was 38.1 percent below the first-quarter average for the five years prior to the pandemic. So, if volumes in 2021 were driven by strong economic growth that translated into CRE fundamentals that were attractive to investors, what changed?” (Commercial Property Executive)
- What’s the Future of U.S. Apartment Demand? “Apartment demand is forecast to moderate, but there are a few demographic and economic fundamentals that will contribute to healthy growth through 2035. This is one of the main aspects highlighted in the latest study commissioned by the National Apartment Association and the National Multifamily Housing Council.” (Multi-Housing News)
- NYC’s $58 Billion Remote Work Wipeout “The shift to remote work destroyed about $58 billion, or 33%, in the value of office real estate in New York City through 2021, according to a working paper. The big picture: The provocatively titled ‘Work From Home and the Office Real Estate Apocalypse,’ published earlier this summer, underscores how the work-from-home boom was largely a bust for pricey corporate office space.” (Axios)
- Neiman Marcus Offers Details of New ‘Corporate Hubs’ Strategy “Neiman Marcus is looking to revolutionize the way the company works. The luxury retailer said it is opening a network of “corporate hubs” designed to support its integrated working philosophy, which it calls NMG/Way of Woking (NMG/WOW). The strategy, launched in 2020, allows most corporate employees to allocate their time and choose their location based on what drives the best results.” (Chain Store Age)
- School’s Out at Hundreds of Closing College Campuses, But Real Estate is In Session “Time was of the essence at the former Johnson & Wales campus outside Denver. The campus was shutting down last year as the Rhode Island-based nonprofit university navigated financial instability, and nonprofit developer Urban Land Conservancy saw an opportunity.” (Bisnow)
- He Found a Way to Create More Homes for San Francisco’s Workforce. Now Comes the Backlash. “Jordan Moss invented a new way to create affordable workforce housing in high rent areas of the Bay Area, adding 4,200 units. Some say the process doesn’t reduce rents enough, and ‘could give affordable housing a bad name.’” (San Francisco Chronicle)
- Grocery Bill Inflation Might Have Peaked “Provided current trends hold, shoppers should get some relief from relentless price increases at the grocery store. This week, Europe’s largest food and personal-care companies reported big price rises for the three months through June. Evian water maker Danone and its rival Nestlé are charging roughly 7% and 8% more for their goods respectively than they were this time last year. Unilever’s brands, including Ben & Jerry’s and Magnum ice cream, cost 11% more on average.” (The Wall Street Journal)
- Florida’s Overburdening Rents Could Fall if NYC Residents Go Home “In normal conditions, rents traditionally increase only 3 to 5 percent a year. If Floridians only had it that good. Signs of more moving vans on the road could make it happen. A report this week from Florida Atlantic University—the Waller Weeks and Johnson Rental Index, which assesses the most overvalued US rental markets—showed that the top eight of 109 most overvalued markets are in Florida, where year-over-year rent jumps exceeded 21 percent.” (GlobeSt.com)
- Co-CEO Resigns from Alexandria Real Estate “Alexandria Real Estate Equities, the nation’s largest life sciences developer, will lose half of its dual CEO. Stephen Richardson, who served as co-CEO at the Pasadena-based real estate investment trust, has stepped down, the San Francisco Business Times reported. His resignation is effective July 31. His resignation ends a 22-year run with the life sciences development powerhouse.” (The Real Deal)
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