Alan James’ Post

The first half of 2024 saw 258 new leases signed over 10,000SF, totaling 7.3M. It's a 49% increase by square footage year over year and a 21 percent hike in volume for the same time period. No surprise that 43% of the deals were in product built or renovated after 2015, with Midtown Core being the center of gravity. (Bain & Company at 22 Vanderbilt, Covington & Burling LLP heading to 30 HY, plus numerous deals on 6th and Park Avenues.) Couple things we'll continue to see going forward: -Financial and Legal sector activity will drive leasing, especially in top tier assets -New development will slow further and resi conversions will plod ahead (13.2M SF of space is currently in the NYC Accelerator Program) -Subsequent compression of availability at the very top will push demand into the more traditional Class A market, a segment where a number of well capitalized and operationally savvy landlords continue to raise funds #jll #nyc #manhattan #officeleasing

60-Minutes segment on the current state of NYC office market Summary for the TLDW Crowd: Scott Rechler: Crossing the Chasm into a world of higher interest rates & new working styles, showcases new office+hotel concept planned for 42nd Street set to be tallest building in Western Hemisphere Stijn Van Nieuwerburgh: With office values down an estimated 40% we're at the beginning of a potential crisis for banks, local governments, cities and beyond (h/t urban doom loop) Elad Dror Tony Park Vanbarton Group LLC: Toured their current office-to-residential conversions in Midtown & Downtown Marc Holiday SL Green Realty Corp.: WFH is a huge societal problem as he tries to nudge his 30m SF office portfolio from 89 to 92% occupancy David Aviram: Extending and pretending for troubled office loans may not work much longer with higher interest rates Ends with the question: Does this end with a systemic crisis akin to GFC of 2008 or a simple pricing correction? https://lnkd.in/efS7mUpA

This is one of the reasons why price discovery in office is difficult to obtain. If a building is struggling a tenant rep will steer tenants away. Also struggling sponsors won't pay for TIs and sometimes renege on leasing commissions. Once distressed assets a gobbled up at rock bottom prices, the building will be renovated and compete at a lower price point driving rents and other building values down. Once we cycle through, the Fed will lower rates, ease capital and the new upcycle begins. But it IS different this time, particularly for office, until WFH, RTO and Hybrid are figured out. https://lnkd.in/eS-upQMP

In the second quarter, the balance of potential distress totaled $201 billion, with apartment assets leading at $56.9 billion, followed by the office sector at $50.9 billion. #creopportunities #multifamily #cre #longbeachrealestate #office #retailinvestments

Don’t miss out on the Newlywed Game: Office Edition! Commercial Real Estate requires collaboration – much like a marriage - and we are putting the Office Industry in the spotlight with some common partnerships: Leasing (Ryan Evanich, Stream Realty Partners) vs. Capital Markets (Chris Murphy, Newmark) Tenant Rep (Travis Boothe, Cushman & Wakefield) vs. Ownership (Bill Cawley, Cawley Partners) We’ll talk to the representatives from each practice area about how they make a deal work, navigating complex transactions, competing priorities from the other side of the table, and how they foster successful partnerships. Registration is available online NOW at www.ntcar.org/office. #ntcar #realestate #cre #commercialrealestate #office #officeevent #newlywedgame #newlywed #leasing #tenantrepresentation #capitalmarkets #ownership

When choosing a prospective tenant, some landlords calculate the rent as 10% of the tenant's revenue to decide on signing a lease. This method ensures that the tenant can afford the rent and provides the landlord assurance of tenant retention. Listen to Adam H. Klein as he drops some knowledge 🪙🪙🪙 Elon Gerberg Michael Barashick #TenantSelection #cre #roigroup 📊🔑

LAST CHANCE to register for CoreNet Philadelphia's dynamic discussion on strategic real estate transformation as it relates to the acceptance of hybrid work and reimagining existing building stock. This conversation will focus on what developers, owners, and landlords can do to reactivate their assets to increase occupancy even if the building is fully leased. Learn from industry experts on how a building conversion affects and appeals to tenants, leasing agents, and investors alike. Register here: https://bit.ly/3urXpr5

More fall out in the commercial office market place! Where is the bottom? I am afraid we are not even close to bottom yet! How can you even value office right now? https://lnkd.in/gVbAku4S

Did you know Quantum Fiber offers gratis services for multifamily properties? Find out how you can take advantage of these benefits in our FAQ video. #Multifamily

𝐀𝐫𝐞 𝐘𝐨𝐮 𝐑𝐞𝐚𝐝𝐲 𝐅𝐨𝐫 𝐓𝐡𝐞 𝐎𝐟𝐟𝐢𝐜𝐞 𝐀𝐩𝐨𝐜𝐚𝐥𝐲𝐩𝐬𝐞? With 1 in 3 landlords on the brink of default, it’s crucial to safeguard your office leases. But do you know how prepared your CRE portfolio is? 𝐓𝐚𝐤𝐞 𝐭𝐡𝐞 𝐪𝐮𝐢𝐳 𝐭𝐨 𝐬𝐞𝐞 𝐡𝐨𝐰 𝐩𝐫𝐞𝐩𝐚𝐫𝐞𝐝 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐎𝐟𝐟𝐢𝐜𝐞 𝐀𝐩𝐨𝐜𝐚𝐥𝐲𝐩𝐬𝐞! 𝐃𝐢𝐬𝐜𝐨𝐯𝐞𝐫 𝐈𝐟 𝐘𝐨𝐮𝐫 𝐂𝐑𝐄 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐈𝐬 𝐔𝐩 𝐓𝐨 𝐓𝐡𝐞 𝐓𝐚𝐬𝐤: 🔹 Assess your portfolio’s risk 🔹 Identify hidden weaknesses in your CRE strategy 🔹 Test your knowledge of lease safeguards 🔹 Pinpoint strategies to cut costs Take the quiz to discover how equipped you are to navigate landlord defaults, negotiate your best lease, and improve the efficiency of your CRE portfolio! 𝐓𝐚𝐤𝐞 𝐭𝐡𝐞 𝐪𝐮𝐢𝐳 𝐧𝐨𝐰  👇🏼👇🏼 https://lnkd.in/gGmFjwvX #OfficeApocalypse #CRE #OfficeMarket #TenantTips #SurviveTheOfficeApocalypse