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10 Must Reads for the CRE Industry Today (Nov. 28, 2022)

Macy’s has converted about 1 million sq. ft. of space at 35 stores into fulfillment operations, reports Retail Dive. Global direct investment in CRE fell on a quarterly basis for the first time since the onset of the pandemic, according to JLL. These are among today’s must reads from around the commercial real estate industry.

  1. Macy’s establishes mini distribution centers at 35 stores “Around 1 million square feet of store space has been converted to be used for fulfillment services, CFO Adrian Mitchell said on an earnings call Thursday. The move gives Macy’s distribution network a presence closer to customers, allowing the retailer to better service demand.” (Retail Dive)
  2. Global Direct CRE Investment Falls for First Time Since the Pandemic “Global direct investment in real estate fell for the first time on a quarterly, annual basis since the onset of the pandemic, according to a report this week from JLL. It dropped 24% to $234 billion due to uncertain economy, monetary policy and geopolitics, JLL said.” (
  3. Homes Became Offices, and Offices Became Homes “Adaptive-reuse apartments are still a smaller share of development compared to 791,081 units of newly constructed rental units built between January 2020 and December 2021. But that was just a 10 percent increase over the previous two-year period, while adaptive-reuse apartments rose by 25 percent in that period.” (The New York Times)
  4. Why Real Estate’s Embodied Carbon Levels Are Impossible to Calculate “When it comes to accurately determining embodied carbon levels, you’d likely have an easier time navigating the Marianas Trench with just a pool noodle. Embodied carbon cannot be readily quantified, because it’s not like you can crack open a slab of concrete or split a steel beam and count the arbon particles within them. Even if you did, you’d get a woefully low estimate compared to the material’s actual lifetime carbon footprint.” (Propmodo)
  5. Investment Giant Fortress to Help Fund Kushner Takeover Bid of Rival Property Owner Veris “The Nov. 17 letter, which was reviewed by The Wall Street Journal, said affiliates of Fortress, a large investment management firm based in New York City, ‘are prepared to finance the debt and equity needed to consummate’ Kushner’s $16 a share offer, subject to due diligence.” (The Wall Street Journal)
  6. 3 Reasons Hesitation Can Hurt Multifamily Sellers “While every situation has different nuances, we advise our clients that it is always important to get ahead of the market, creating a strategy based on their specific wealth management goals. Often that means making a decisive, bold tactic, as opposed to hesitating.” (Multi-Housing News)
  7. The Rent Is Too Damn High in New York — Thanks to Politicians “It appears some of our policymakers don’t believe that residential real estate should be a for-profit business. Even if our elected officials believe that an economics textbook is capitalist propaganda, look no further than the pandemic to show a real-life example of how supply and demand work.” (Commercial Observer)
  8. Living Above the Store “Living above a business that has very long hours and very loud patrons is not for everyone, but Mr. Longo, now 38, was up to the challenge. After all, he’s a co-owner of Ida’s, a six-year-old neighborhood hangout with a version of an ‘in and out burger’ on the menu and a stuffed wolf named Ida mounted behind the bar.” (The New York Times)
  9. Restaurants, Grocery Stores Battle Over Consumers’ Stretched Dollars “Some grocers said their industry gained an advantage over restaurants during the Covid-19 pandemic when Americans had to cook more meals for themselves, and the supermarkets aim to ensure consumers keep up the habit as the U.S. economy shows signs of slowing. New York-based Tops Markets LLC, which operates about 150 stores, is rolling out more digital coupons and continues to offer fuel rewards aimed to help shoppers save money, said Kristen Hanson, who oversees merchandising at the chain.” (The Wall Street Journal)
  10. How a Looming Recession Impacts CRE Deals “Six rapid rate hikes and rising inflation between March and November have slowed transactions across all sectors as demand has softened due to higher debt costs and uncertainty, and the bid-ask spread has widened as sellers have been reluctant to lower prices.” (Commercial Property Executive)
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