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12 Must Reads for the CRE Industry Today (May 3, 2021)

Bisnow and The Real Deal provide two more analysis pieces on the potential implications of the Biden tax proposals for 1031 exchanges. Real estate titan and philanthropist Eli Broad died at age 87, reports the New York Times. These are among today’s must reads from around the commercial real estate industry.

  1. Biden's Proposed Tax Hikes Could Hit CRE Retroactively “Generally, taxes are prospective in nature and go into effect a year or two after passage, KE Andrews property tax consultant Tony Trahan said. Former President Donald Trump's tax changes outlined in the Tax Cuts and Jobs Act of 2017 went into effect the year after their passage. But there is a strong precedent to apply these hikes to the 2021 tax year if Biden wants to begin collecting money, Trahan said.” (Bisnow)
  2. Biden’s proposal to cut 1031 exchanges may be “tremendous blow” to real estate: experts “ Eliminating the program would impact real estate investing across multiple sectors. A 2019 survey from the National Association of Realtors found that multifamily properties and single-family rentals made up a chunk of 1031 exchanges among its members, with many done by smaller investors.”(The Real Deal)
  3. Workers are slowly returning to offices: Dallas takes the lead, while San Francisco and NY trail behind “The number of employee office visits in 10 large cities reached 26.1% of the pre-pandemic level the week ending April 21, according to Kastle Systems, the largest provider of technology that tracks such data through swipes of keycards and other devices. While Dallas and other Texas metro areas have solidly topped that average, cities such as San Francisco and New York have lagged.” (USA Today)
  4. Eli Broad, Who Helped Reshape Los Angeles, Dies at 87  “Few people in the modern history of Los Angeles were as instrumental in molding the region’s cultural and civic life as Mr. Broad. He loved the city and put his stamp — sometimes quite aggressively — on its museums, music halls, schools and politics. He was, until he began stepping back in his later years, a regular figure at cultural events and could be seen holding court in the V.I.P. founders’ room at the Los Angeles Opera between acts.” (The New York Times)
  5. Steven Roth Offers To Resign From REIT Board After Losing Shareholder Vote “A majority of JBG Smith's shareholders voted Thursday to remove Vornado CEO Steven Roth from the REIT's Board of Trustees. The vote came at the REIT's annual meeting and was revealed Friday afternoon in a Securities and Exchange Commission filing. The filing said Roth offered to resign from the board following the vote, in accordance with the company's governance rules.” (Bisnow)
  6. Restaurant Revitalization Fund promises relief, but may require fast action “With the Restaurant Revitalization Fund (RRF) set to launch on May 3, history may repeat itself. With this in mind, restaurant owners who would like to apply for an RRF grant should register for an account in advance on the SBA's RRF website on Friday, April 30, so they are ready to apply for a grant upon the program’s opening. The application portal is available at” (Restaurant Dive)
  7. The urban exodus out of New York City and San Francisco is a myth “That's the argument from a recent Bank of America Research note, by a team led by Head of US Economics Michelle Meyer, which says the shift isn't the urban exodus it appeared to be. BofA said that while the pandemic accelerated preexisting migration out of cities like New York City and San Francisco, those two are the only true examples of anything resembling an exodus, and reopening will spark a return to both cities.” (Insider)
  8. Bankruptcy Courts Need Tools to Help Real Estate Debtors “Commercial real estate has taken a hit due to Covid-19. The Bankruptcy Code does not offer meaningful relief for single asset real estate (SARE) debtors—where a single property or project generates substantially all of a debtor’s gross income, according to Lowenstein Sandler LLP attorneys. They say bankruptcy courts need the tools to allow SARE debtors the ability to effectively reorganize.” (Bloomberg Law)
  9. Colony Capital Announces Completion of Colony Credit Real Estate Internalization “Colony Capital, Inc. (NYSE: CLNY) today announced that its subsidiary, CLNC Manager, LLC, completed the previously announced internalization transaction with Colony Credit Real Estate, Inc. (NYSE: CLNC) (“CLNC”). Consequently, as of April 30, 2021, CLNC is now an internally-managed commercial real estate credit REIT and its management contract with the Company has been terminated.” (Via press release)
  10. New bill would mandate retail lease renewals in NYC “The City Council bill, introduced by Helen Rosenthal, a Manhattan Democrat, would mandate that for leases greater than one year, landlords notify tenants whether or not they intend to renew 120 days before it expires. If the landlord declines to renew, tenants will have the one-time option to extend the lease by up to one year with a rent increase of no more than 10 percent, as long as they have not previously breached the lease.” (The Real Deal)
  11. Kroger begins testing drone deliveries for baby products and s’mores “Kroger is joining rival Walmart by launching a drone delivery pilot program for groceries later this spring. The supermarket chain is partnering with Drone Express to deliver items like baby products, over-the-counter medications, and picnic supplies weighing up to about five pounds from a test store in Centerville, Ohio.” (The Verge)
  12. WeWork Taps JLL To Market Flex Space in 38 Locations Nationwide “WeWork has tapped JLL to market and lease co-working and flex spaces in 38 locations in seven cities nationally.  The arrangement will see JLL acting as what the firms call “an extension of WeWork’s in-house sales team” in New York City, Boston, Atlanta, Dallas, Denver, Phoenix and San Francisco.” (
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