Now that’s what we call a news cycle! – Trade Observer

So… slow news week, anyone?

Let’s forget that for the moment burning garbage can this is Twitter, which issued a new policy on Thursday: come back to work at least 40 hours per week, unless personally exempted by Elon Musk.

Let’s forget the other business crisis, Crypto giant FTX, which vanished billions of assets in recent days as it faced a liquidity crunch and failed to complete a takeover by its rival Binance. (What does that mean for making Miami the crypto hub of the country? Your guess is as good as ours. But FTX can still claim to have done it the biggest commercial any times.)

Let’s forget the fact that Russia left Khersona devastating retreat that allows us to reflect on the day when the terrible conflict in Ukraine will end, and with it a return to some normalization Energy Prices and Supply Chains.

Let’s forget that the latest consumer price index showed this after months of pain Inflation had subsided to the slowest pace since January, causing the Dow to decline his biggest rally jump 1,200 points in two years. (Possibly the Fed’s rate hikes actually work?)

Oh, yes – let’s forget about Hurricane Nicole, which made landfall on Thursday and sparked evacuations along the Florida coast. (It wasn’t Hurricane Ian, so it didn’t get as much ink as the other stuff.)

Like everyone else in the media, we had our eyes soldered to the TV since Tuesday night, watching the cheery GOP predictions of Red Wave, Red Tsunami, Red-Choose-your-own-water-based-disaster evaporate into something which is closer to a Red Damp washcloth. (If so. From where we stand now, the GOP seems poised to actually lose ground in the Senate.)

It was in CO’s home territory (New York) that the GOP actually made inroads, flipping four seats in the House of Representatives, but the party’s efforts were not enough to oust Gov. Kathy Hochul. she got the first woman ever elected governor from New York, having inherited the position 15 months ago from a disgraced Andrew Cuomo. Hochul’s election and tenure was largely warmly welcomed by the real estate industry.

“Congratulations to Kathy Hochul and everyone elected to the state legislature and congressional delegation from New York on Tuesday,” the New York Real Estate Authority said in a statement after the election was called. “REBNY and its members look forward to working together on issues that are essential to the city’s continued vibrancy. These include increasing the much-needed supply of quality housing, tackling climate change and supporting a resilient commercial office sector.”

This was a revealing statement from REBNY. Gov. Hochul (perhaps reasonably) deferred many of the toughest decisions about housing and real estate until she was safely out of voter sight.

“Now, with an electoral mandate in hand, the hard work will begin,” said Jolie Milstein, president of the New York State Association for Affordable Housing, CO. “Gov. Hochul should continue to prioritize housing in her governorship, finding solutions to help both homeowners and renters still struggling with the pandemic, embarking on important statewide land-use reforms and real resources for the production and maintenance of affordable housing to provide and deploy.”

Hochul did not appreciate the same kind of speculation and gossip in the political sphere as Ron DeSantis did for his stunning 19-point win over Charlie Crist in the Florida gubernatorial race. But the Florida election brought some unexpected backlash to development.

Voters rejected ballots Initiatives in Miami Beach to let Stephen Ross’s Related Companies is rehabilitating the historic Deauville Beach Resort and an initiative that will allow Starwood and Peebles Corporation to build mixed-use offices on Lincoln Road.

However, voters approved a 99-year lease extension for Miami Riverbridge, the $1.5 billion three-story skyscraper project along the waterfront in downtown Miami that would consist of more than 1,500 rental units, 615 hotel keys and 264 serviced apartments. So there is.

Perhaps the most surprising at this point is developer Rick Caruso engaged in a hard fight with Rep. Karen Bass as Los Angeles Mayor — a race Caruso reportedly spent $100 million on. (We may not know the results for days or even weeks.)

Furious! (Oh, and did you know that Elon Musk’s 2 year old is called X Æ A-12? We missed that around for the first time.)

Now for something completely different

Yes, last week was news beyond politics, Ukraine, inflation, Twitter and cryptocurrency.

WeWork, for example, picked a promising week to announce this Replacement of 40 underperforming sitesincluding downsizing its headquarters at Dock 72 on the Brooklyn waterfront.

But that news (which came as a result of a call to investors) should be tempered by the positive development that the coworking company’s revenue rose 24 percent in the third quarter compared to the same period last year.

What will become of the office space? (This REBNY survey didn’t do us any good.) For a long time, the ace up the sleeve of commercial real estate was a booming tech sector, but the industry-wide slowdown is real – and it’s having a painful impact on real estate, by the way.

You can see the pain play in San FranciscoHome to Twitter as well as some of the biggest tech companies in the world who can’t seem to get their office market moving. There are about 20 million square feet available in the city, and a recent report from the Institute of Taxation and Economic Policy says commercial property values ​​could fall by 43 percent.

Further south, in Los Angeles, the office does better if you’re in healthcare and medical space.

A new report from JLL says rents in the greater Los Angeles area are up 3 percent, with demand not slowing down thanks to constrained supply. (There are fewer than 40,000 square feet under construction, according to JLL’s Chris Isola.)

Laboratory space is also still in demand. Because we have seen CBRE has invested $110 million to acquire Full Spectrum Group, a laboratory technical support services company of private equity firm Pfingsten Partners.

Let’s talk about something other than office

CO interviewed this week some of the biggest proptech players and asked her how she felt about 2023, and though there was a hard truth (Alosant’s April LaMon: “The pressure on proptech startups to build sustainable businesses will increase“; Architrave Maurice Grassau: “The year 2023 will inevitably lead to a survival-of-the-fittest scenario where only the solutions with proven ROIs will succeed‘) there was sunshine too.

“We are very excited about the potential that proptech has to positively impact housing access and affordability,” said Gregor Watson of 1Sharpe Capital.

“We are seeing a significant amount of dry powder and a desire to deploy that asset,” said Dealpath’s Mike Sroka.

“I’m excited about the continued evolution of data and intelligence created from digitally connected buildings,” said Intapp’s Frank Spadafora’s DealCloud, “not only to increase operational efficiencies and smarter resource utilization for individual assets, but also as a foundation.” to measure, report and meet a growing range of market and investor needs in areas such as ESG and tenant engagement.”

All in all, the survey is very interesting (and sometimes sobering) to read.

But to really feel inspired it would be advisable to read the life story by Andrew Simmons, the founder and CEO of A&S Rebar.

Simmons spent seven years in prison for dealing drugs (he started as a teenager) only to reform and propel himself to the forefront of New York’s rebar industry.

“When we talk about redemption or second chances, we think of people like Andrew Simmons,” said Queens Rep. Gregory W. Meeks. “Rather than let the adversities of his life define him, Andrew stood up and fought back. … We need more people to exemplify Andrew’s commitment to salvation and the opportunity to improve our neighborhoods and communities.”

Until next week!


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