Lumicre’s Post

🎉 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. 

awesome group of experts! the most constant factor in the real estate market is change. come hear about current market conditions

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

IN THE NEWS: Our President and CEO Harlan Reichle spoke with Luke Ramseth of The Toledo Blade to discuss the 2023 Year-End Market Reports and what that could mean moving forward for the Glass City commercial real estate market in 2024. Take a look! 

Today SL Green Realty Corp., one of the largest commercial office property owners in New York, released its second quarter financial results with mostly positive results - 38 Manhattan office leases signed covering over 420,000 RSF in the second quarter and 98 leases totaling over 1M SF YTD (equivalent to a year-over-year increase of 15.5% for Q2 and 5.4% increase for the first half of 2024) - Funds from operations (FFO) of $2.05 per share in Q2 (versus $1.43 over the same period in 2023) - Increased 2024 earnings guidance of $7.45 to $7.75 as a result of strong leasing performance, especially, amongst the trophy assets like One Vanderbilt and others in Midtown. - Also extended over $1B in debt on 280 Park Avenue through September 2026 with the option to extend further through September 2028 at an identical 1.78% over Term SOFR. https://lnkd.in/g-mqkeGu #realestate #slgreen #manhattanoffice

🌆 Building Sales and Rent Resets: A Strategic Move Increasing Occupancy at 550 California St. 📈 🏢 Revitalization Success: 550 California St., previously vacant and acquired at a discount in 2023, now showcases growing occupancy with nine leases secured since last fall. 📊 Strategic Leasing: The diverse tenant mix, including companies like PEAK Technology Partners and Genedata, illustrates the appeal of strategically priced locations in a soft market. 💸 Market Influence: The sale at a lower price point has played a crucial role in resetting rent expectations across San Francisco, making high-quality spaces more accessible and attractive. 🛠️ Tenant Implications: Lower rent rates not only reduce operational costs for current and prospective tenants but also offer more flexibility in choosing prime locations without the premium price tag, enabling businesses to allocate resources elsewhere for growth and development. Explore strategic real estate opportunities and expert insights—contact us today! https://lnkd.in/gWuwayHw

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

Newmark Valuation & Advisory presents Newmark's Greater Oakland/East Bay, California Quarterly Real Estate Market Report which is a valuable resource for investors, owners and occupiers looking to remain informed on the area’s office and industrial market. This quarterly report encompasses data from major cities in the area, including Oakland, Berkley, Emeryville, and more, providing insight into the market’s latest trends and driving factors. ➡️Download Newmark Research’s Greater Oakland Office and Industrial Quarterly Market Reports here: https://nmrk.re/3OPe79R  ➡️For more information on Newmark Valuation & Advisory in California: https://nmrk.re/3OTrtlk Reach out to Newmark Valuation & Advisory's Northern California Market Co-Leaders, Robby Perrino, MAI, CRE, CCIM and Jay Booth, MAI, CRE, to learn more about #GreaterOaklandRealEstate valuation & trends. #office #Industrial #valuation #CommercialRealEstate #CaliforniaRealEstate

Big Deals in the Office Market! Bargain hunters are snapping up distressed office buildings at massive discounts. With properties in major cities being sold for up to 70% off, this market shift spells trouble for banks and real estate-backed loans. Key players like Empire Capital Holdings, Namdar Realty Group, and Yellowstone Real Estate Investments are leading the charge, each with unique strategies for their acquisitions. This wave of discounted deals reflects a broader acceptance of lower property values. As we navigate these changes, it's crucial to watch how these investments reshape the urban landscape. #oregonrealestate #portlandrealestate #oregon #oregonrealtor #portlandrealtor #portlandoregon #pnw #commercialrealestateagent #portland #commercialrealestateagent #pdxrealestate #pdx #pdxrealtor #CRE #pnwcommercialrealestate #officespace #warehouse #realestateinvesting #industrialspace #flexspace #commercialproperty #business #land #portlandrealestateagent

"Lease PENN 2 with Vornado and Cushman & Wakefield: Your Top Commercial Real Estate Solution" Read the full article below..