- Distressed US Commercial Property Assets Swell to $64 Billion “The amount of distressed assets rose 10% in the first three months of the year, according to a new report from MSCI Real Assets. Risks loom on the horizon too, with nearly $155 billion of commercial property assets that are potentially troubled, according to the report.” (Bloomberg)
- Middle America's 'doom loop' “In order to pull out of their tailspin, economists and urban planners say many Midwestern cities need to get serious about improving amenities and boosting quality of life in their downtowns. Instead of being places where people are forced to go to work, leaders need to make their center cities into a destination that people actually want to visit.” (Insider)
- Building owners cough up cash to buy more time on mortgages “For the banks and CMBS special servicers overseeing these loans, they get to avoid the messy tangle of foreclosing on properties. The building owners get to live and fight another day but at a cost, as they’re at the mercy of their lenders.” (The Real Deal)
- Vacant Offices Are Piling Up in Silicon Valley “The level of surplus office space remains below what is available just north in San Francisco, where the vacancy rate has more than tripled from 2019 to more than 25%. But some analysts and investors expect Silicon Valley will narrow the gap because tech companies are going through layoffs and are shedding unwanted floors.” (The Wall Street Journal)
- SCOOP: Terra’s $1.2B purchase of Genting’s Miami assemblage called off “The deal was set to mark the priciest urban land sale in Florida and one of the most expensive in the country. News of Terra entering into contract in late April provided rocket fuel for the market at an uncertain time, brokers and attorneys said. It created momentum for other deals, and boosted investor confidence in the local market.” (The Real Deal)
- Hybrid C-PACE Taking Hold as CRE Financing Strategy: Marcus & Millichap “Buchwald noted that lenders in a hybrid C-PACE deal can benefit from a higher yield in the partnership, which can enable lenders to take on a little more risk on the senior piece of the deal. He said the trend began to take hold in late 2022, especially for construction loans or renovation projects.” (Commercial Observer)
- When Vacancy Rates Trigger Potential Tax Refunds “Assessors appraise various classes of taxable commercial property, generally grounded to the concept of market value and with the objective of assigning uniform, equitable values. Mass appraisal models can produce or miss an important value characteristic, such as high and chronic vacancy.” (Commercial Property Executive)
- Rents for 2 Million New Yorkers to Rise Again This Year “The panel, known as the Rent Guidelines Board, voted 5 to 4 to raise rents on one-year leases by 3 percent, and on two-year leases by 2.75 percent for the first year and 3.2 percent for the second year.” (The New York Times)
- Black Americans Are Leaving Cities in the North and West “The outflow marks a reversal of the Great Migration that began in the early 20th century as millions of Black Americans left the South looking for more economic opportunities and to flee racial violence. Much of the current shift is driven by younger, college-educated Black people who are relocating from northern and western places to the South, said William Frey, a demographer at the Brookings Institution.” (The Wall Street Journal)
- One Real Estate Deal Uncovers the Murky World of Banks’ Lifeline Lender “The property, built in 1895, wouldn’t look out of place in any number of handsome city neighborhoods where people scroll Zillow or Redfin, fantasizing about their dream home.” (Bloomberg)
- After Coming Up Empty On Office Conversion Deal In Albany, NYC Pushes Renovation Tax Break “Property owners have until Aug. 1 to apply for the Manhattan Commercial Revitalization program — known as M-CORE. The offering, a strategic tax abatement aimed at encouraging office owners to revamp older office buildings that are struggling to attract tenants, is already experiencing “incredible” interest, a New York City Economic Development Corp. official told Bisnow.” (Bisnow)
- How the Vape Shops Won “For now, vape shops appear to be a winning business model in most places. Their neon signs glow across cities, suburbs, exurbs, and rural small towns alike, even when many other kinds of retail stores are struggling to stay afloat in the same places.” (The Atlantic)
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