Summary List Placement
The coronavirus pandemic threw the real-estate world into disarray, as people emptied out of offices, hotels, and malls and worked from their homes. That disruption has transformed how people and companies finance, operate, and occupy real estate.
Some big firms have been rethinking office needs — and some commercial real-estate deals were put on ice as financing dries up. Coworking and flex-office firms are struggling under big rent obligations after years of rapid growth.
A surge in e-commerce, meanwhile, is fueling demand for warehouse and cold storage space as companies look for new ways to reach customers. And with the pandemic increasing the amount of food delivery and hurting restaurants’ bottom lines, ghost kitchens see an opportunity to grow.
Still, companies like IBM and Facebook have been pushing ahead with plans for big office spaces, showing that it may be too soon to call and end to the office. Apple has been in talks to grow a Manhattan office that it leased earlier this year. And Amazon Music has just signed on for 40,000 square feet in Williamsburg, Brooklyn, to use as production and recording space.
Here’s the latest news on how real-estate markets are being upended, and how experts think these markets will play out in the long run.
Here’s everything we know right now:
Authentic Brands may join Simon and Brookfield in a rescue of JCPenney, allowing the new owners to populate the department store chain with Authentic’s stable of retailers
Amazon just leased a new space in Brooklyn to house recording studios for its music-streaming service, as Big Tech keeps gobbling up space while the office market flounders
What top investors and dealmakers are saying
Blackstone’s co-head of real-estate explains why the giant investor is still betting on office properties — and lays out the industries where demand for in-person workspaces are the strongest
Commercial real-estate hiring is heating back up. From strategy-focused exec jobs to the red-hot industrial space, 4 recruiters lay out roles they’re trying to fill.
Meet the 4 dealmakers driving Blackstone’s $325 billion commercial real estate portfolio. They walked us through how they’re thinking about opportunities in the downturn.
The CEO of real estate heavy-hitter Eastdil explains the types of deals that are must-do right now — and warns that a ‘de-retailing’ trend is set to accelerate
Tech office deals
The Big Tech office isn’t dead. Here’s why giants like Facebook and Amazon keep gobbling up space while telling workers they can stay home.
Facebook thinks in-person collaboration can’t be fully replicated remotely and is betting on physical office hubs in big cities as key recruitment tools
Apple is in talks to potentially expand its NYC footprint. It shows how tech is becoming a lone bright spot for a battered commercial real-estate market.
Facebook just reached a blockbuster deal to lease the massive Farley Building in NYC as a tech and engineering hub. Here’s why it’s a huge …read more
Source:: Business Insider