Gary Ceder’s Post

Year-over-year, trophy #office buildings in #Manhattan that charge rents in excess of $100 per square foot has increased, and now encompass 80 buildings. Many of the best building owners and managers in the city are actively marketing and leasing these high-end spaces including, SL Green Realty Corp., Vornado Realty Trust, Brookfield Properties, Tishman Speyer, RXR, Rudin, Related Companies, Silverstein Properties, The Durst Organization, Boston Properties (BXP), Empire State Realty Trust, Paramount Group, L&L Holding Company, The Moinian Group, Hines, RFR, and so many more amazing owners, managers, architects, engineers, and consultants with an unwavering commitment to excellence. The growing trend of flight-to-quality combined with a rapidly shrinking development pipeline will produce higher rents with less space available. Tenants are making investments in corporate #culture and #productivity, are paying their rents, and employees are coming to work >> https://lnkd.in/euzzPc4S JLL - Andrew Lim

Due to a drop in demand and rising interest rates, we know that the value of office buildings has plummeted. This has created an opportunity for investors who are willing to buy aging and empty buildings at deep discounts, hoping to profit when the market recovers. Check out this article highlighting examples in Manhattan. #OfficeBuildings #RealEsate #CRE

🎉 Big News! United Group has once again been crowned Albany's #1 Commercial Real Estate Developer by Albany Business Review! Dive into the latest article featuring a Q&A with our President & CEO, Michael Uccellini, for a glimpse into his insights on the future of the real estate and office markets in the Capital District. 

What's Happening in #Tampa/ #StPete: A Boston-based office landlord has signed eight new tenants in the two buildings it owns in downtown Tampa. Farley White Florida, which owns Fifth Third Center and Two Harbour Place, signed the deals in late 2023. A team of brokers from the Tampa office of CBRE, Molly Molloy Catlett, KC Tenukas and Kristin Kenney, represented Farley White in the lease transactions. Five of the leases were in the 19-story, 281,187-square-foot Fifth Third Center, which was built in 1981 and is 92% occupied. Two Harbour Place was built in 1998. It is 12 stories and 188,101 square feet. It is 94% occupied https://lnkd.in/eDdZh5aG #office #TampaOffice #cre #tamparealestate CBRE #marketupdate #downtowntampa Tampa Bay Business Journal

McCarthy's South End conversions epitomize the office-to-rental arbitrage play. Acquiring vacant office bones at $3.4M for 20k SF and pending deal for 30k SF at $5.6M all-in basis. Reset that discounted basis through modest renovations into 24 and 25 units, respectively. With sub-$200k/key all-in, you're manufacturing prime multifamily stock at 30-40% of replacement costs in those neighborhoods. Huge arbitrage spread against today's exit caps. For McCarthy, it's about penciling to aggressive exit pricing but compelling IR and equity multiples given the bargain-basement entry point. Could be scoring 20%+ IRRs if executed cleanly. But it's also a win for Boston - densifying housing supply through adaptive reuse of obsolete office space rather than just new construction. The tax abatement helps grease those conversions.  Question is whether the city's cut through future participation fees makes this a sustainable model, or if it discourages some sponsors. If struck right, these conversion plays could be a critical housing vitalizer for supply-starved markets. #OfficeToRental #RealEstateArbitrage #McCarthyConversions #SouthEnd #BulfinchTriangle #VacantOffices #RealEstateInvestment #MultifamilyStock #ReplacementCosts #ArbitrageSpread #ExitCaps #IRR #EquityMultiples #BostonRealEstate #AdaptiveReuse #HousingSupply #TaxAbatement #SustainableModel #HousingVitalizer #SupplyStarvedMarkets https://lnkd.in/gNhiYji7

The softening of demand for even the nicest buildings was not hard to forecast. One building is renting for $100/sf and a building across the street does not have as many bells and whistles, but is leasing for $50/SF. You know where the CFO is going to decide to go. We saw this in Texas in the 80s when the best buildings could hold out for higher rental rates for a little while, but then the market forced them to reduce rates, increase TI, and offer substantial free rent. In real estate rising tide lifts all boats, but when the tide goes out, everybody is stuck in the mud. https://lnkd.in/gvAgzA9V

For the 5th consecutive year, CompStak® published the Top Ten Most Valuable Manhattan Office Leases signed in 2023 with #therealdeal *This year's top ten list demonstrated an uptick in #renewals and #lawfirm deals from years past. *Notably, deals in #newconstruction were conspicuously missing from this list which reflects a falling large block supply in that slice of the Manhattan office market rather than a lack of interest. *There has been heightened demand for newly built and trophy office space over the last few years and new deliveries like #OneMadisonAvenue and #TwoManhattanWest have opened significantly pre-leased. For more on this year's top most valuable leases, please read our latest CompStak® blog. Brigette Palombo Jacob Thomas https://lnkd.in/ezFtsehP

In a benchmark of success that Manhattan office building owners are hoping will herald a “trickle-down” recovery, the exclusive club of office towers that charge rents above $100 per SF now encompasses 80 buildings, up from last year’s record of 77. Manhattan office tenants signed 192 leases in 2023 with starting rents of $100 or more, amounting to 5.6M SF, equal to 26% of overall leasing in the borough last year, according to JLL’s Year-End 2023 report. #investment #investmentrealestate #cre #office

Our 1Q 2024 Austin Office Market Report is now available to download! This report offers a detailed picture of the Austin commercial real estate market. In this quarter’s special report, we explore how tenant size impacted office rates pre-COVID-19 compared to now. Download the full report here: https://lnkd.in/d9NKx7H

What JLL, CBRE and Cushman & Wakefield are seeing in office leasing Article -- Joe Franco, CBRE vice president, said CBRE has inked 441,757 square feet in new leases, renewals and expansions in Charlotte so far this year, with at least 10 more deals set to close before the end of the second quarter. That's almost double what the firm did in the same time period in 2023. Franco attributes a major part of that success to landlords and developers fully embracing spec suites. Proof of this, he said, is that they're getting bigger. Instead of 2,500 or 5,000 square feet, building owners are investing in five-digit spec footprints. https://lnkd.in/gtMWRahU