- WeWork Will Close About 40 Locations as Losses Narrow “WeWork said Thursday that it was going to close roughly 40 ‘underperforming’ locations in the United States and tempered its revenue forecast for the year, highlighting the challenges the co-working company still faces after its near collapse and subsequent bailout in 2019. In reporting its third-quarter financial results, WeWork said it lost $568 million in the period, an improvement from last year’s third quarter, when it lost $802 million. Revenue of $817 million in the latest quarter was more than 20 percent higher than the $661 million reported a year earlier.” (The New York Times)
- Vultures Circle as Distress Looms for Commercial Real Estate “Rising interest rates, mounting debt and an anticipated record number of maturities have some real estate players smelling opportunity.” (The Real Deal)
- Are Tech Companies Still Good Tenants? “The news out of Facebook-parent Meta Platforms on Wednesday was great for the stock and terrible for a lot of employees. CEO Mark Zuckerberg told the latter that the company would lay off 13% of the staff, or more than 11,000. The point: Meta has spent a lot of money, even by Silicon Valley standards, and now it’s time to get leaner. Shares went up more than 5% over the previous day’s close. The pandemic fooled Zuckerberg, who, as MarketWatch reported, said that the surge of growth didn’t keep going the way he expected.” (GlobeSt.com)
- Retailers Turning to Specific-Day Delivery Over Speediest Shipping “Retailers this holiday season are focusing on delivering packages to customers on specific dates, rather than competing on speed of delivery. The shift marks an easing in a race for delivery speed in e-commerce in recent years that has pushed goods to shoppers’ homes at an ever-faster pace while narrowing retailers’ profit margins on sales. With inflation-conscious consumers now dialing back their online shopping, many retailers are focused on restraining the high costs of fulfillment and last-mile delivery.” (The Wall Street Journal)
- Starwood Earnings Jump 50% as It Gathers $1.3B in Dry Powder “Barry Sternlicht assured investors that Starwood Property Trust is being extra careful as it seeks opportunities amid economic turmoil. ‘It’s something of a financial hurricane,’ he said during the REIT’s third quarter earnings call on Wednesday. ‘You really can’t cure this inflation, which has been driven by excess stimulus and lack of goods on the shelves.’ Sternlicht, the billionaire chairman and CEO of the real estate investment trust, said the firm is exercising caution when it comes to deploying capital.” (The Real Deal)
- Elon Musk Bans Remote Work at Twitter in First Email to Staff “It’s clear that Twitter owner and supreme ruler Elon Musk has no problem bombarding his employees with bad news. In his first email to the remaining staff he didn’t lay off on Wednesday, Musk purportedly ended Twitter’s permanent remote work policy and said that employees would be expected to be in the office at least 40 hours per week.” (Gizmodo)
- Kathy Hochul Won. Now Comes a Set of Real Estate-Related Challenges. “It was a race that the commercial real estate industry watched with particular interest, having swung squarely behind Hochul after the Buffalo Democrat unexpectedly rose to the perch of state power after Gov. Andrew Cuomo resigned from office after a sexual harassment scandal 15 months ago. The industry had a love-hate relationship with the nearly three-term Cuomo, to say the least, with often contentious — and secretive — negotiations that hinged on any number of give and takes.” (Commercial Observer)
- Logistics Property Co. Closes $1.8B Industrial Real Estate Fund “Logistics Property Co. LLC has closed LPC Logistics Venture Two LP, its second develop-to-core fund, with total equity commitments of $1.8 billion, LPC announced on Tuesday, Nov. 9. The fund was closed with backing from several global institutional investors, along with co-investment by LPC. Those investors included both entities that had also committed to this new fund’s predecessor, Venture I, and several new major institutions.” (Commercial Property Executive)
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