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15 Must Reads for the CRE Industry Today (Oct. 6, 2022)

Smaller occupiers are getting squeezed out in the hyper competitive market for industrial space, reports The Wall Street Journal. Companies that were offering perks to lure staff back to offices have begun to dial back, according to Commercial Observer. These are among today’s must reads from around the commercial real estate industry.

  1. Small Businesses Getting Squeezed Out in Push for Warehouse Space “The challenges small businesses face finding warehouse space mirrors difficulties many had securing room on container ships earlier in the Covid-19 pandemic, when ocean carriers drove up rates and bumped smaller shippers to make way for larger clients.” (The Wall Street Journal)
  2. Companies Pull Away Perks as Staff Return to the Office “Company perks are like icing on a cake. It’s not a must but it’s good to have  — and it looks pretty bad when you scrape it off. But during COVID-19, the little extras were even more heavily emphasized. Perks (and amenities) were the thing that many on both the tenant and landlord side believed would induce workers to return to their fancy (and pricey) Manhattan desks.” (Commercial Observer)
  3. Allowing Hybrid And Remote Work May Cost Companies Their Tax Incentives “Economic development agencies are now scrambling to accommodate changing work patterns while maintaining the activity that in-office workers bring to a city. But businesses that would like to keep their cash grants, tax rebates and other incentives are urging those agencies to allow them to abandon the office altogether.” (Bisnow)
  4. Net Lease Cap Rates Increase on Rapid Interest Rate Rise “Accordingly, demand for properties with limited or no rental escalations are limited to properties with above market yields or strong underlying real estate. Investors expected cap rates to widen for non-core net lease deals with short term leases, lesser tenants or secondary markets.” (Commercial Property Executive)
  5. Micron opts for New York over Texas for $100 billion factory “Lockhart, Texas had been a finalist for this massive semiconductor factory. Micron said Oct. 4 it will invest up to $100 billion to build the fabrication facility elsewhere – with the help of $5.5 billion in incentives.” (Dallas Business Journal)
  6. American Express to explore headquarters sale, move “Sources told The Real Deal that American Express is looking at about 1 million square feet needed primarily in New York although some could be located in cheaper cities where some of its remote workforce has moved during the pandemic.” (The Real Deal)
  7. Office Real Estate ‘Apocalypse’ Could Cause Fiscal ‘Doom Loop’ for NYC “A 40 percent decline in the value of office buildings in the city would cause a corresponding decline in the city’s tax revenue. Because New York City is required to balance its budget, the city would need to either reduce spending or raise taxes to make up the difference.” (New York Sun)
  8. Council Aims to Promote SFR-BTR Sector by Standardizing Its Terminology “Among its recommendations was to use build-TO-rent (BTR), instead of build-FOR-rent (BFR), because build-to-rent receives more traction on multiple fronts: Google traffic, #hashtag followers, and citations in the press.” (
  9. Most CEOs are already preparing for a recession, with plans including laying off staff and cutting spending on environmental issues, a major survey shows “Measures companies plan to take to weather the recession include cutting ESG spending and laying off staff, the survey, which canvassed the opinions of the CEOs of 400 American companies with annual revenues of at least $500 million, showed.” (Insider)
  10. Blackstone raises $7.9bn for Asia real estate fund “A filing with the US Securities and Exchanges Commission showed that the Blackstone Real Estate Partners Asia III fund had surpassed the $7.1 billion raised by its previous Asia-focused real estate fund which was launched in 2018.” (Funds Global Asia)
  11. Frank Advice for CRE Borrowers “If you are unfortunate enough to have a loan backed by a currently out-of-favor asset class such as an older office building, weak or unanchored retail center or a conference hotel maturing in the next 12 months, you may be facing some difficult choices.” (Commercial Observer)
  12. How the Pandemic Changed Malls “Inflation and high interest rates now represent another bump in the road for the sector. Commercial Property Executive talked to CBL Properties CEO Stephen Lebovitz about these challenges as well as the ‘new mall’ experience and the company’s future plans.” (Commercial Property Executive)
  13. It’s Time For Developers To Help Solve The Rental Crisis “There’s a bit of gold fever in multifamily investing right now, but as we grow wealth, we also need to set a standard for giving back to the communities in which we investors improve properties.” (Forbes Business Council)
  14. Chicago to Convert Famous Business District Office Buildings to Apartments “Chicago is offering financial help to developers willing to convert aging office towers into residential buildings, a new program that could become a test case for other cities looking to promote these office conversions.” (The Wall Street Journal)
  15. LA’s eviction moratorium to end in February “The lifting of the restrictions will once again allow building owners to evict tenants who have fallen behind in their rent. The restrictions have prohibited landlords from evicting renters affected by COVID-19 since March 2020 at the dawn of the pandemic.” (The Real Deal)
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