Banyan Street Capital’s Post

Denise Hamer, this is an extreme case, but unfortunately not an exception. We are going to see a lot more sales like this in the major US cities, Dublin, London, Frankfurt, etc. In the short term, there is little demand for these types of properties. What demand there is requires substantial investment to meet the requirements of the few tenants in the market. For lenders and owners, it is a difficult decision as to whether they are throwing good money after bad or protecting an existing investment for the long term. There are investors with the knowledge to reposition these buildings, but they have much higher return requirements than the historic owners. The movement of these properties to these investors will be painful for owners and their existing lenders. #commercialrealestate #distresseddebt #emptyoffices #specialsituations

Another true Class A office building announced by Crescent Real Estate LLC for Fort Worth is great to see.  Despite what some national headlines say, there's clearly demand for this type of new office product; that is especially true in a market like Fort Worth which hasn't had a lot of new office development, despite all the growth as a city.     https://lnkd.in/g397v5n4

LA office building sells at 52% less than 2018 price LOS ANGELES: A Los Angeles (LA) office building located near Century City and Beverly Hills has sold for about 52% less than its price five years ago. Harbor Associates and F&F Capital Group bought the five-story property at 1640 Sepulveda Boulevard for about US$44.7mil, according to a statement. The building last sold in 2018 for US$92.5mil. It’s the latest sale of an LA office building in a market that’s been pressured by the rise of remote work and financing challenges brought about by soaring interest rates. Recently, the Aon Centre in downtown LA sold for US$147.8mil, about 45% less than its previous purchase price in 2014. The building at 1640 Sepulveda Boulevard was constructed in 1987 and has had more than US$11mil in renovations, including upgrades to tenant spaces as well as a redesigned lobby. The building was 80% occupied at the time of the deal’s closing, according to the statement. “After several years of kicking the can down the road, we are now beginning to see distress hit the market,” Harbor principal Joon Choi said in the statement. “There are still compelling opportunities to find the hidden gems at a deep discount to replacement.” The deal is the second real estate acquisition for the joint venture in the past two months. Harbor and F&F also acquired an industrial portfolio in Carlsbad, California, for about US$21mil in November. #losangelesrealestate #californiarealestate #officebuildings #commercialproperty #commercialrealestate #commerciallending #commercialloans #commercialloan

National vacancy rates for office spaces continue to climb, though at a slower rate. In Q3, Canada's overall office vacancy rate was 14.7%, with Vancouver's slightly lower at 9.4%. Despite softened demand for general office space, Class-A and AAA spaces remain in high demand, particularly in prime downtown locations. Large companies looking to attract their workforce back to premium, modern office environments are driving this trend. Morguard's recent investment in Telus Garden, a high-end building with top-tier tenants, reflects the ongoing demand for premium office space. Colliers National Market Snapshot Q3 2024: https://lnkd.in/gD4H7SB6

No recent real estate deals capture the current dynamics of San Francisco’s changing office market quite like this deal in the Mid-Market neighborhood (at 1455 Market Street). And it may not be the only one. The city has negotiated another deal in the building at 1145 Market St., near Civic Center, and expects to formally announce it next week. Starting in May, more than 157,000 square feet of the building will be leased to the city, according to a resolution introduced this week by Board of Supervisors President Aaron Peskin. According to the pending lease agreement, the city will initially lease a portion of the tower’s seventh floor, or roughly 51,790 square feet, and all of floors 12, 13, 15 and 17. The term of the lease is 21 years and comes with two five-year renewal options.

There's no question that the Marquee "A" Buildings are starting to preform better in the Big Apple. The real question for New York City is what to do with over 110 Million Sq. Ft. of vacant "B & C" office space that will never again be rented as an Office? We have an answer Arthroto Industries Inc. #nyc #newyork #commercialrealestate #commercialbroker #commercialoffice #adaptivereuse #officetoresidential #officeconversions #housing ##realestate

"DC Office Building Repositioned by Marx Realty" Read the full article below..

The downtown San Diego office market landscape is reshaping. With over 2M sf of new inventory being delivered and most of the Class A ownership turning over through recent trades and continued lender takeovers, how and where deals are getting done is changing.  For many, these changes are welcomed with a fresh outlook on the opportunity for value creation at a lower basis. One thing is for sure, the underlying theme of the “haves and have nots” should continue through the foreseeable future as office tenants gravitate to the new and newly renovated buildings with abundant amenities in premier locations. https://lnkd.in/gGeMktZF

One of St. Louis’ Tallest Office Towers, Empty for Years, Sells for Less Than 2% of Its Peak Price. This interesting outlier highlights the impact of the pandemic on the #commercialrealestate market. The building's sale price serves as a stark reminder of the challenges faced by the industry as a whole. With so many #office buildings sitting vacant, it's clear that the demand for commercial real estate has taken a hit. As we navigate these times, it's important to keep a watchful eye on the market and adapt to the changing landscape.

15,000 SF Office Building in Annapolis SOLD We are thrilled to announce the successful sale of a three-story office building located at 121 Cathedral Street, Annapolis, MD 21401. The +/- 15,000 square foot building in the heart of downtown Annapolis was bought by a partnership formed by principals of SPIRE Architecture, Dixon Financial Group and Richardson Financial d.b.a First Command Financial Services, both anchor tenants in the building. John Gallagher and Eric Pinkett of Hyatt Commercial represented the buyer. The second floor will continue to accommodate other small office users, including Premium Parking Services and the League of Women Voters. SPIRE Architecture is an award-winning architectural firm known for its innovative and captivating designs. Established in Annapolis 12 years ago, the firm has been delivering exceptional architectural solutions that transform spaces and inspire creativity. SPIRE Architecture specializes in both residential and commercial projects, ensuring each design is tailored to meet the specific needs and vision of its clients. First Command Financial Services provides comprehensive financial planning services to assist clients in achieving their financial goals. With a focus on military families, First Command offers personalized financial coaching, investment strategies, and insurance solutions to ensure financial security and success. "We are thrilled that after many years of being tenants, our client can now control their real estate and space needs and begin to implement strategies to improve the building," said John Gallagher of Hyatt Commercial. "Owner-occupied opportunities remain very sought after within the Annapolis submarket, and we are fortunate to have secured this deal before it went to market." Kurt Shepard, Principal Architect at SPIRE Architecture, added, "This acquisition represents a significant milestone for SPIRE Architecture. Owning our building, along with our investment partners, allows us to invest further in our firm’s growth and control how we evolve, from a space perspective, so that we can continue to deliver exceptional design solutions to our clients." #Annapolis #RealEstate #OfficeBuilding #CommercialRealEstate #HyattCommercial #PropertySale #OwnerOccupied #BusinessGrowth #Architecture #FinancialPlanning #AnnapolisRealEstate