Eastdil Secured’s Post

The current low prices of office buildings will allow for these assets to be repositioned or redeveloped at substantial profit for the buyers and huge losses to the prior owner or lenders. The "cylce of life" applies to all physical objects. Re-leasing an office space in a major city can easily be $100 to more than $200 per SF, depending on term, concessions, leasing commissions, downtime between leases, etc. Highly amenitized office buildings in walkable locations are still in demand. Older buildings with good locations can be repositioned, but need deep discounts on acquisition prices to do so based on the above. While WFH will continue, RTO will gain traction as the leverage from employee to employer shifts through the coming recession. As the new office development pipeline shrinks, over time, the office market will eventually normalize in strong markets, but it will take time. In the meantime, many city governments have not felt the full impact of value declines on the real estate tax base. In Florida for instance, taxes are assessed in arrears, so there is a delayed reaction on the impact. Due to inmigration and continued growth, Florida will fare better than cities in California which are facing a doom loop of decline. https://lnkd.in/eJQw8bSJ

Tampa Bay Industrial Market Update - Q3 2024 Unlike many other markets, Tampa Bay has not recorded a slowdown in construction starts. While development of big-box spaces has tapered off, developers remained confident in building smaller properties, particularly in premium submarkets with high demand. Leasing activity reported a notable uptick in Q3 with 1.3 msf of new deals signed, marking a 14.5% QOQ increase. This brought the YTD total to 4.0 msf. For more information, check out the Q3 Tampa Bay Industrial MarketBeat below or by going to Cushman & Wakefield Tampa Bay website at: https://lnkd.in/g3Eqpt5q #cushmanwakefield #research #TampaBay #CRE #IndustrialMarket #CommercialRealEstate

Converting vacant office buildings into apartments on 60 Minutes (Video) https://lnkd.in/dDaYJui #CRE #REIT #Office to #Apartments #Multifamily

Conversion of San Jose tower from offices to homes starts to emerge Contact me to discuss the latest scoop in real estate! #soldbytonyngai #tnrealtyinc #realestate #realtor #dreamhomes #realestateagent #homesofinstagram #homesearch #realestateinvesting #housingmarket

-As the flight-to-quality phenomenon takes hold nationwide, top-tier tenants within the Philadelphia CBD may start to see their options limiting despite a record-breaking total availability rate of 24.5%.  -Large blocks of space, those equaling over 20,000 contiguous square feet, represent an average full floor plate for many buildings downtown. Premium space users are typically seeking floors not only in high-quality buildings, but also above the 25th floor to capture unobstructed views of the surrounding city. -Full-floor availability on or above the 25th floor comprises of just 23.4% of all large block availability within Trophy and Class A buildings in the CBD. When considering Trophy only, this number shrinks over half to 10.5% or roughly 14 floors. -As some of the city’s larger players near upcoming lease expirations, landlord’s ability to combine smaller availabilities into large blocks closer to the top of the footprint will work to their advantage in a market of tighter premium availability.  

What is the meaning of commercial real estate? Commercial property is defined as property used for business purposes rather than living space. This includes offices, industrial units, rentals and retail. #realestate #westmorelandparalegal #titleinsurance #closings

I have frequent debates on this topic, with my think tank group and there seems to be serious confusion regarding large commercial assets and the "Loss" trade price. This is the 1st wave of a commercial correction, which is long overdue. Bad debt has been a shell game for a very long time. The Fed's came up with a plan to allow the reclassification of bad debt on bank balance sheets to mitigate a repeat of our last RE crash. Bank insolvency is extremely disruptive to our economy due to the amount of speculation surrounding bank failures, so the Feds created a backstop solution to keep the value of the dollar afloat. Unlike the crash in 2008, banks are now incentivized to rewrite bad debt so that the financial balance of any single sector is not disrupted too abruptly. I assume that "you" have experienced how different the creditor collection practices have become in today's environment. When you fall behind on a debt obligation, the bank now eagerly calls you with a solution! Creditors welcome a workout or forbearance because the government provides massive subsidies and incentives for delaying paper from being reclassified. Without the manipulation of the timing at which bad paper hits the market, the severe disruption in economic stability would have been unmanageable. I'm not a conspiracy theorist whatsoever and I am not trying to say that our government is out to get us by manipulating our banking system with ill intent. The opposite is my case in point. The government is manipulating the economy through bank debt, in an effort to reduce the fallout from the Covid shutdown. It takes a very long time to recover from that type of world disruption without manipulation. Every sector of every economy within every country was affected negatively, in a very short period. Think about it! Neither the governing world powers, nor the World Bank was experienced enough or prepared well enough to handle a biological disruption of this magnitude. They need to quit pretending that they have it all figured out, because they don't and we shouldn't expect them to. This was unchartered territory and everyone should be working together to figure "this" out for human survival. Don't panic when buildings of this size trade for "yesterday's" values. The more that trade, the closer we are to realizing true organic stabilization.

Interesting comparison of the St. Louis Commercial RE market to the country. There are concerns about the large bulk spaces available in office buildings. That being said, if a company is looking for 3 to 5K SF they have some nice space to choose from. But if the need is small, less than 2K what is left is often excess space from another tenant's downsize and what is left is not in move in condition. So small users, plan ahead for your move. It is easier to slow things down than speed them up as the whole CRE process depends on actions of third parties, i.e. contractors, planning and zoning, etc. #stlouiscommercialrealestate #stlouiscre #womenincre #commercialrealestatesolutions #cresolutions

Why Designers and Other Consultants Who Work in Urban Revitalization Should Be Concerned About Falling Office Values If office values fall 40% or more (which is likely for buildings in lesser locations), this "arrow in the quiver" won't be available for downtown, transit-oriented, and other forms of mixed-use development. With the internet now accounting for 30% of non-food and non-automotive retail sales, stores and restaurants are also harder to develop. For revitalization strategy, that leaves housing and hospitality, which only work together in lifestyle locations. The solution to too much office space? Make every location "lifestyle", so that people will want to be there regardless of the time or day.

The tale of two markets: pre- and post-2010 construction in Manhattan https://lnkd.in/emWqWWpi Manhattan’s commercial real estate market is witnessing a clear divide. Buildings constructed before 2010 have seen availability jump from 12.7% in Q1 2020 to 19.9% in Q2 2024. This trend underscores the importance for landlords to modernize and invest in these aging properties to remain competitive. #Manhattan #Office #AYdifference