Skip navigation
10-mustreads-CRE.jpg

10 Must Reads for the CRE Industry Today (Oct. 31, 2022)

CBRE is laying off some of its workforce as part of a $400 million cost-reduction plan, reports Bisnow. Meta will spend $3 billion in lease terminations and other fees as part of a plan to shrink its office footprint, according to The Real Deal. These are among today’s must reads from around the commercial real estate industry.

  1. Emerging Trends in Real Estate 2023 “This year’s ‘Emerging Trends’ also reconfirms two sometimes contradictory property market trends: Aspects of the industry are ‘normalizing’ (reverting to pre-COVID patterns), while others appear to have permanently changed as the pandemic changes how and where we use different types of properties. These patterns are playing out in how real estate professionals view prospects in the 80 markets we tracked. No matter the trends, we believe companies must be flexible and adapt quickly to market changes.” (PwC/ULI)
  2. CBRE To Lay Off Workers Amid $400M Cost-Reduction Plan “CBRE Chief Financial Officer Emma Giamartino said during the company's earnings call Thursday that most of the cuts will occur by the first quarter of 2023. The Dallas-based company, which employs over 100,000 people globally, didn't say how many people would lose their jobs.” (Bisnow)
  3. Meta to spend $3B to shrink office footprint “The company has not disclosed other locations that have seen or are due for lease terminations, but it forecast that it will spend an ‘estimated $2 billion in charges related to consolidating our office facilities footprint,’ Wehner said.” (The Real Deal)
  4. 5 Takeaways From Our Investigation Into RealPage’s Rent-Setting Algorithm “The use of private competitor data — though it is aggregated and anonymized — to set prices is one of the concerns experts raised. The practice could allow RealPage to stifle rental competition, they said, driving up rents across the country and, potentially, even violating antitrust laws. Experts said that RealPage also sponsors meetings that gather competitors together to talk about pricing, which could also be a warning sign of collusion.” (ProPublica)
  5. Public REITs Are Down, Nontraded REITs Are Up. Which Is Right? “Both funds are up about 10% this year including the rise in share price and dividends. The 26% decline in the MSCI REIT index also includes dividends. Investors in these funds are concerned about declining property values, recent weakness in rents and rising interest rates, which make the income generated by REITs less attractive and increase borrowing costs for the funds.” (The Wall Street Journal)
  6. Apartment Market Softens, Sales Put on Hold Amidst Rising Rates and Economic Uncertainty “Apartment market conditions weakened in the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions for October 2022, as the Market Tightness (20), Sales Volume (6), Equity Financing (13), and Debt Financing (5) indices all came in well below the breakeven level (50).” (NMHC)
  7. Inside Manhattan's most expensive office building, which boasts swanky showers, March Madness parties, and views for 40 miles “The 1,401-foot-tall skyscraper sits on East 42nd Street and Vanderbilt Avenue, next to Manhattan's storied Grand Central Terminal train station. It has 1.8 million square feet of interior space — the size of over 30 football fields — across its 72 floors.” (Insider)
  8. Increased Threats Against Data Centers From Terrorists, Thieves Have Developers Prioritizing Security “In this environment, developers are making sure they have the ability to incorporate the specific security demands of the largest hyperscalers in their designs, a must if they want any chance of landing them as tenants. At the same time, data center builders have seen an increase in security incidents, as long lead times on equipment mean more valuable machinery sitting at construction sites for longer periods of time.” (Bisnow)
  9. Remnants of Sears to be wiped out as Seritage shareholders bless asset sale “This summer, the company’s board recommended a plan to liquidate its properties and return proceeds to shareholders. Shareholders had been expected to go along, given that former Sears CEO Eddie Lampert controlled close to 30 percent of Seritage’s Class A shares.” (The Real Deal)
  10. Facing acute housing shortage, Adams looks to a policy change “The mayor is looking to exempt proposed developments of roughly 200 units or fewer from a required environmental review, two city officials working on the plan told POLITICO. They spoke on the condition of anonymity to freely discuss a policy that is still under review.” (Politico)
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish