- Prologis Signals Caution in Industrial Property Development “Prologis Inc. is pulling back on building new warehouses without tenants already signed on, as the world’s largest developer of logistics properties braces for a potential economic downturn. The shift away from what is known in the real-estate sector as speculative projects reflects ‘a more cautious approach,’ Tim Arndt, chief financial officer of Prologis, said on an earnings call Wednesday. High inflation, which has been prompting the Federal Reserve to raise interest rates, the energy crisis in Europe and Russia’s invasion of Ukraine are creating headwinds that may dampen economic growth and logistics demand, according to the San Francisco-based real-estate investment trust.” (The Wall Street Journal)
- Cap Rates Jump 72 Basis Points in 6 Months “Data is backing up what many multifamily buyers and sellers already know — cap rates are rising for apartments around the country. A new report from CBRE says that going-in cap rates rose 33 basis points to 4.09% in the third quarter. In the second quarter, they jumped 39 bps (their biggest increase in a quarter ever) — marking a 72 bps increase over six months. Still, they are below their fourth-quarter 2019 level of 4.16%.” (Multifamily Dive)
- Blackstone Earnings Sink as Private Equity Portfolio Takes a Hit “The New York investment firm reported net income of $2.3 million, or less than 1 cent a share, compared with a profit of $1.4 billion, or $1.94 a share, during the same period last year. Blackstone said the value of its corporate private-equity portfolio fell 0.3% in the quarter. The decline was smaller than that of the S&P 500, which dropped 5.3%. The firm’s Tactical Opportunities and secondaries investments depreciated by 1.7% and 3.5%, respectively, and the value of its flagship real-estate portfolio fell by 0.6%.” (The Wall Street Journal)
- U.S. Office Rents and Overall Demand Soften in 2022 “Hybrid work drives flight to quality as tenants look to avoid long-term leases.” (Commercial Observer)
- Times Square May Get One of the Few Spectacles It Lacks: A Casino “Now one of the city’s biggest commercial developers is pitching something that Times Square does not have: a glittering Caesars Palace casino at its core. The developer, SL Green Realty Corporation, and the gambling giant Caesars Entertainment are actively trying to enlist local restaurants, retailers and construction workers in joining a pro-casino coalition, as the companies aim to secure one of three new casino licenses in the New York City area approved by state legislators earlier this year.” (The New York Times)
- Black Developers Refuse to Work with DeLeon on $1.6-Billion Angels Landing Project “Black real estate developers of the proposed $1.6-billion Angels Landing project refuse to continue working with City Councilman Kevin de León.” (Los Angeles Times)
- National Hotel Revenue Surges Past Pre-Pandemic Levels, But NYC Lags “Americans are spending more at hotels than in 2019 across much of the country —especially in Florida — but New York City’s hospitality industry hasn’t fully recovered yet. Hotel revenue from leisure travelers is projected to reach $97.8 billion nationwide by the end of 2022, according to data released this week by the American Hotel and Lodging Association, a hotel industry trade group.” (Commercial Observer)
- These Universities Have the Largest NYC Real Estate Footprints “The Real Deal ranked (and mapped) the 15 colleges and universities that own the most real estate in New York City by square footage.” (The Real Deal)
- Amazon Opens Second Style Fashion Store “Amazon is continuing its push into fashion by opening physical retail locations. The company on Tuesday opened an Amazon Style store in Columbus, Ohio. It is the e-commerce giant’s second Style store in the U.S. and the first in the Midwest, according to information sent to Retail Dive. Amazon Style launched in Los Angeles earlier this year.” (Retail Dive)
- Walmart CEO Says Its Stores Being Open on Thanksgiving ‘Is a Thing of the Past’ “If you're looking to do some holiday shopping on Thanksgiving Day this year, you won't find anything at a Walmart store. Walmart CEO John Furner recently told The Today Show that the company won't have stores open on the holiday. ‘It's a thing of the past,’ he said. ‘We'll be closed again on Thanksgiving. Fortunately, all of our associates will be able to spend time with their loved ones this year.’” (Insider)
0 comments
Hide comments