Normandy RE

Congratulations to Alexi Several and Brandon Azus on their wedding! The entire Normandy RE team celebrates this special moment with you both. Brandon, your commitment to excellence continues to inspire, both in the office and beyond, and we’re excited to witness this new chapter in your lives. Wishing Alexi and Brandon a lifetime filled with joy, love, and shared successes!

A few weeks ago, the question was raised about whether long-term Treasury yields might rise despite anticipated Fed rate cuts, given inflation concerns. Back then, the 10-year Treasury yield was 3.68%; it has since climbed to 4.05%, even with the Fed signaling further rate reductions. The recent 50 bps cut raises questions on whether this action might be fueling inflation concerns and keeping yields elevated. In real estate, where asset values often align more closely with the 10-year Treasury than the Fed’s overnight rate, these developments could be significant. The outlook remains uncertain as these dynamics continue to unfold.

As we move into the fall season, the atmosphere on Park Avenue reflects the city’s dynamic energy—crowded sidewalks, crisp air, and of course, the return of seasonal favorites like pumpkin spice lattes. The cooler weather and changing leaves mark a great time to reflect on the year’s progress and set the stage for a strong finish to 2024. Fall provides the perfect backdrop for focusing on new goals and initiatives as we head into the final quarter. #AutumnInNYC #ParkAvenue #FallSeason #BusinessFocus #YearEndGoals

Fulton Market Innovation District (FMID): Chicago's (and one of the US) most #sustainable office districts? Following the success and lead of Shapack’s 167 Green Street, a decadelong transformation has reshaped Chicago's office landscape, turning this once-industrial zone into a corporate hotspot. This district leads in some of the most creative and sustainable office projects, bucking all negative trends, in the US. Fulton Market Office Boom, by the numbers: > 3M+ sq ft: New office space (2015-2022) > 40% surge: Class A rental rates since 2015 > 2M sq ft: In pipeline (2023) > Key players: Google, McDonald's HQ > Lead owners and developers: Shapack, Trammel Crow Company, Normandy RE, Thor Equities Group > Vacancy: 23% (2015) ➡️ <10% (2022) $60+/sq ft: Premium office rates Pictured: Jeff Shapack’s 167 Green Street, Normandy’s McDonald’s HQ, and Thor’s 800 W. Fulton #development #FultonMarket #Chicago #innovation

Are Interest Rate Cuts Enough to Drive Commercial Real Estate Recovery? A recent CoStar Group analysis highlights that, based on historical data, recoveries in CRE have been slow following rate cuts. Despite optimism, the data shows a more gradual rebound. Key takeaways include: • Sales volumes and prices typically take 1.5 to 3.5 years to recover post-rate cuts. • Loans at sub-2.5% rates are now maturing, with today's average at 6.2%, which is slowing transactions. • Cap rates rise five quarters after rates surpass 5%, affecting property values. • Distressed sales are on the rise and could persist through 2025. • Vacancy rates peak 3 to 3.5 years after interest rate hikes. Could the historically slower recovery of commercial real estate take a different path, similar to the public equity market rebound after COVID-19? Link to the full CoStar Group analysis in the comments. #CommercialRealEstate #CRE #InterestRates #MarketTrends #CoStar #RealEstateInvestment

With the Federal Reserve’s interest rate announcement just hours away, speculation is growing over whether we’ll see a 50 bps cut, signaling potential concerns about the labor market, or a 25 bps cut, indicating a more gradual approach. This decision could have significant implications for the broader economy and commercial real estate markets. What do you think the Fed will decide? Feel free to share your reasoning in the comments! #InterestRates #FederalReserve #EconomicOutlook #CommercialRealEstate

With the Fed expected to cut rates, could the bond market react differently than usual? Instead of long-term yields falling, might inflation concerns push 10-year Treasury yields higher? It’s a scenario worth considering as investors balance inflation risks with growth expectations. What do you think—could we see this inverse play out? Share your thoughts in the comments. #FedRateCuts #TreasuryYields #BondMarket #InflationRisks

Are Fridays the new Saturdays? Our building's foot traffic suggests so! At Normandy RE, we've noticed that Friday work-from-home is becoming the new norm. Is it just a summer trend or is it here to stay? We're curious to find out. What does your office building look like on Fridays? Let us know in the comments below. #WFH #Office #RealEstateTrends

Yahoo Finance's recent data highlights a significant rise in real estate private credit activity, with major private equity firms and retail investors alike seizing this moment. As banks pull back, alternative wealth managers are stepping in, driving a notable increase in investment. It's intriguing to see retail investors now actively exploring these opportunities. How do you think this growing interest in private credit will influence real estate valuations and the broader market dynamics? Article posted in the comments below.

We’re soon wrapping up our Summer Program and would like to congratulate Sandy Liu and Devashri Mehrotra for being such curious and enthusiastic members to the Normandy RE team. Sandy and Dev brought unique experiences and interests, and contributed in multiple projects, teaching us a little something every time they took on a new task. We, at Normandy RE, wish Sandy and Dev all the best with their MBA senior year at Columbia Business School and with their future endeavors. We can’t wait to see them do great things. To incoming MBA candidates, see you next summer! #Summer #NormandyRE #Internship #RealEstate #PrivateEquity