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10 Must Reads for CRE Investors Today (Jan. 17, 2023)

The rising cost of interest rate caps could precipitate some real estate investors who can no longer afford the hedges to sell their assets, reports The Wall Street Journal. Multi-Housing News has a special report on the state of affordable housing policy. These are among today’s must reads from around the commercial real estate industry.

  1. Rising Interest Rates Hit Landlords Who Can’t Afford Hedging Costs “The cost of insuring commercial real-estate loans against a rise in interest rates has exploded over the past year, raising the prospect of a market selloff since many property owners will no longer be able to afford these hedges.” (The Wall Street Journal)
  2. Millions Permanently Moved Out Of U.S. Cities During The Pandemic. How That Is Affecting CRE Is Complicated “Although the population losses for both New York and California slowed as the world acclimated to the new normal, these population shifts open up new possibilities for some parts of the country as development seeks to follow demographics.” (Bisnow)
  3. House Republicans Want Federal Agencies to Return to the Office “House Republicans introduced a bill aimed at forcing federal agencies to have workers return to the office. But it’s unclear how much of a priority that actually is or whether the GOP representatives would use potential conflicts — a government shutdown or debt ceiling-induced default — as bargaining chips.” (
  4. MHN Special Report: How Policy Will Shape Affordable Housing in 2023 “Building the largest number of affordable units quickly and cost-effectively is paramount, yet a variety of regulatory and economic hurdles stand in the way. That scarcity has been exacerbated by numerous ongoing struggles, including increased construction and labor costs, above-average rent increases and a challenging financing landscape.” (Multi-Housing News)
  5. Bed Bath & Beyond in Talks to Sell Assets “Bed Bath & Beyond, the struggling home goods retailer, is in talks with the private equity firm Sycamore Partners to sell assets, including its Buy Buy Baby stores, as part of a possible bankruptcy process, people familiar with the matter said. The retailer is also in talks with other suitors about possible transactions.” (The New York Times)
  6. How Vacant Office Spaces Get New Life “As of the start of December 2022, 42 office conversions had reached completion and 217 were either underway or planned. Of the underway developments, 21 projects were scheduled to come online by the end of 2022, according to CBRE.” (Commercial Property Executive)
  7. Rising Interest Rates Bring Challenges for Student Housing Acquisitions, Refinancing in 2023 “Financing student housing might not be as bad as you might think. While the capital markets are in flux, purpose-built student housing has some of the strongest fundamentals in commercial real estate going for it. Robust pre-leasing, very healthy occupancy and rental rate increases are making the asset class attractive to lenders. The problem: getting today’s terms to pencil on some projects.” (REBusiness Online)
  8. More CRE Companies Pledge 50% Emissions Cuts By 2050 “Among the companies to pledge to halve their buildings-related emissions by 2030 and reach net-zero building emissions by 2050 are Avison Young, JLL, Ivanhoé Cambridge, Edge, GPFI Group, Majid Al Futtaim Properties, Schneider Electric, and Signify. These firms will use a 10-step process developed last year by the World Economic Forum to meet this goal.” (
  9. Hochul, Adams have big housing plans; some question whether they can deliver “Reactions from policy analysts and other observers were similarly restrained, with some noting the herculean task of changing course in a city where economic inequality is a defining feature from neighborhood to neighborhood. At the same time, there was some appreciation that the two leaders, in their policy prescriptions, were at least sounding the same notes.” (Gothamist)
  10. Saks Fifth Avenue Wants to Add a Casino Atop Its Flagship Store “The project is one in a growing list of bids to secure three available licenses for a full-fledged casino in the New York City region. Hudson’s Bay joins a crowded field of hopefuls, including Steve Cohen, the owner of the Mets, and Related Companies, the developer behind Hudson Yards, in the pursuit of poker and other table games currently prohibited in the city.” (The New York Times)
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