- Why Office Buildings Are Still in Trouble “More office workers are back at their desks than a year ago, but attendance at office buildings in New York, Boston, Atlanta, San Francisco and other cities is languishing well below prepandemic levels. As leases come up for renewal, companies are often opting for smaller offices, saddling landlords with millions of square feet in vacant space. And more space is expected to hit the market in the coming months as companies like Meta, Salesforce and Lyft lay off workers. More than 100,000 technology workers have lost their jobs this year, according to Layoffs.fyi, a site that tracks job cuts.” (The New York Times)
- Inside the 2023 Playbook for Real Estate Investor Financing “The coming months are likely to see greater focus on single-family rentals, reduced credit availability and potential new competitors entering the market.” (National Mortgage News)
- Real Estate Lender: ‘There’s a Healthy Amount of Capital Out There’ “High interest rates make borrowing money costlier — but there's capital out there if you know where to look, this real estate lender told the NBJ.” (National Business Journal)
- REIT Portfolio Managers Assess Key Trends and Issues for 2023 “If the Fed is successful, REITs should be able to continue generating attractive earnings growth on a relative basis. In this scenario, real estate would benefit from a steady demand for space with new supply growth limited by the recent increased cost of materials and labor. While the level of uncertainty and volatility remains very high in the investment marketplace, we believe there is still strong rental pricing power in many property types and that the fundamentals of the space have held up well.” (Reit.com)
- ‘The Hardest Job in Business’: CRE’s Chief Diversity Officers on Their Roles 2 Years Post-George Floyd “Two years after the initial surge, the roles and experiences of chief diversity officers have moved far beyond a fancy new job title and a box checked for their employers. They are a group of professionals who face a slew of challenges every day, but also a meaningful opportunity to increase the equity of people previously marginalized by one of the most powerful, influential industries in the world.” (Bisnow)
- Nightmare Before Christmas for Department Stores “Department stores cozied up to shoppers with early holiday deals, only to be met with cold shoulders. Will they have a late Christmas or none at all? Macy’s and Kohl’s both met tempered expectations in their respective quarterly reports ahead of the all-important holiday selling season. Macy’s, which also owns Bloomingdale’s, saw comparable-store sales at owned stores decline 3.1% in its quarter ended Oct. 29, which was better than the 4.3% decline Wall Street analysts polled by Visible Alpha were penciling in. Kohl’s saw comparable-store sales decline 6.9% over the same period, in line with its recent guidance.” (The Wall Street Journal)
- Conversions to Address Just 2 Percent of Office Market: CBRE “A CBRE analysis found planned or just completed conversions of office space will total just 2 percent of the nation’s office footprint.” (The Real Deal)
- Fading Supply Chain Problems Signal Season of Plenty for Holiday Shoppers “Easing supply-chain pressures mean American consumers can look forward to their first normal holiday season in three years, industry executives and analysts say. They project full store shelves—and even deals—as retailers work through gluts in product categories from toys to furniture. ‘The script has been flipped,’ said Steve Pasierb, president of manufacturing group The Toy Association. ‘From a supply-chain standpoint, it’s the opposite of last year.’” (The Wall Street Journal)
- Renters Are on the Move. Where Are They Going? “A new study by Rent.com examined renter migration by analyzing user activity on its platform in July, August and September, aiming to find the metros with the greatest share of inbound rental interest compared with outbound interest. (A user was considered interested in a listing if they provided contact information to the home’s landlord or broker via rent.com.) The study found that during the third quarter of the year — as it had been during the first and second quarters — the South was the most popular region of the country among renters trying to move.” (The New York Times)
- Nation’s Largest Mall Landlord Strikes Deal to Bring Digital Brands to its Properties “Simon Property Group, the nation's largest mall owner, drew attention earlier in the pandemic by financially aiding some struggling retailers that rent space in its properties. Now the landlord is helping small online sellers enter the world of brick-and-mortar retailing — while becoming tenants at its malls. The real estate investment trust's latest proactive effort to reach out to foster renters involves striking a deal to open stores used by companies being shepherded by Leap, a startup that helps digital-native brands launch physical spaces.” (CoStar News)
- NYC to Cap Renewable Energy Credits for Building Owners “Barely a month after issuing guidelines for compliance with Local Law 97 (LL97)—which mandates that property owners start reducing carbon emissions from buildings in 2024—NYC officials say they have to close a loophole that could weaken the impact of the law. Under the heading ‘Cap the Credits,’ a statement posted on his website Monday by City Comptroller Brad Lander said that an “unanticipated supply” of projects offering Renewable Energy Credits (RECs) to building owners could moot the impact of LL97 as owners choose to purchase RECs to avoid costly retrofits.” (GlobeSt.com)
- Chipotle to Open 250 to 285 Restaurants in 2023 “The fast-casual giant — the only restaurant company of its size that owns and operates all its restaurants — has opened its 500th location that features the brand’s digital order drive-thru pick-up lane (“Chipotlane”). Located in Louisville, Ky., the restaurant also features a dining room and patio. Chipotle said it is building a real estate pipeline to accelerate new unit growth with an emphasis on Chipotlanes. Next year, the company plans to open between 255 to 285 new restaurants, with at least 80% including the digital order drive-thru lane.” (Chain Store Age)
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