- Fed Expected to Raise Rates, May Signal Fewer Hikes Ahead “The U.S. Federal Reserve is expected to raise interest rates on Wednesday, but may cut the number of hikes it anticipates next year and signal an earlier end to its monetary tightening in the face of financial market volatility and rising recession fears. The central bank is due to announce its decision at 2 p.m. EST (1900 GMT) after its final two-day policy meeting of the year. Fed Chairman Jerome Powell is scheduled to hold a press conference half an hour later.” (Reuters)
- SoftBank Finds Limits to its Love for WeWork as Investors Push Back “Key investors in SoftBank Group Corp.’s giant tech fund have balked at a planned $16 billion investment in co-working startup WeWork Cos., leaving SoftBank Chief Executive Masayoshi Son to find an alternative as his ambitions hit up against the limits of his financial firepower. Government-backed funds in Saudi Arabia and Abu Dhabi, according to people familiar with the matter, have told SoftBank executives they have concerns about SoftBank’s negotiations to buy a majority of money-losing WeWork, whose industrial-chic workspaces and short-term leases have made it one of the world’s hottest startups.’ (Wall Street Journal, subscription required)
- Facebook Looks to Lease Redeveloped One Madison Ave. “Like other tech behemoths, Facebook is looking toward a larger future in the Big Apple with a play for the transformation of an office tower next to Madison Square Park. The social media network is now negotiating to lease the One Madison Ave. redevelopment being planned by SL Green Realty Corp., sources say. Back in June, I wrote that SL Green wanted to add a tower to the top of the current 1.127-million-square-foot low-slung granite building.” (New York Post)
- New York to Remain World’s Largest Urban Economy, with San Jose the U.S.’ Fastest Growing: Report “A new report predicts New York City will retain its crown as the largest urban economy in the world, as San Jose, Calif., set to be the fastest growing. Oxford Economics says in its annual Global Cities report that financial and business services will keep New York City in first place in 2035. In that year, the report projects New York City to have annual output of $2.5 trillion after adjusting for inflation. Tokyo, the report projects, will be No. 2 by ‘some margin,’ followed by Los Angeles and London. Chicago is the third and final American city placing in the top 10.” (MarketWatch)
- U.S. Home Sales Rose 1.9 Percent in November “U.S. home sales increased in November for the second straight month, but sales plummeted 7 percent from a year ago amid growing affordability pressures. The National Association of Realtors said Wednesday that sales of existing homes rose 1.9 percent to a seasonally adjusted annual rate of 5.32 million last month. But higher mortgage rates have caused sales over the past 12 months to plunge at the steepest pace since May 2011, when the real estate sector was still in the grips of the housing bust.” (Associated Press)
- Sears Bankruptcy Battle Tests Default Swaps Market “A legal dispute over the handling of insurance contracts on Sears Holdings Corp.’s debt is putting the effectiveness of such instruments in doubt and raising questions about fairness in the bankruptcy process. Holders of credit-default swaps which insured against Sears’s collapse contend a debt auction related to the swaps didn’t generate top dollar for Sears and its creditors as required in bankruptcy. Instead, these investors say in court filings, the auction rewarded a hedge fund that had sold credit insurance on the company: Cyrus Capital Partners, which is allied with Edward S. Lampert, who has run Sears for 13 years.” (Wall Street Journal, subscription required)
- Cushman & Wakefield Arranges Sale of New Jersey Office Building “IBIS Realty LLC has acquired Ibis Plaza, a two-building office complex in Hamilton, N.J. A Cushman & Wakefield team comprising Andrew Schwartz, Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Ryan Larkin and Milt Charbonneau handled the sale of the single-story assets. The same team brokered the disposition of a nearby office park in July. Located at 3525-3535 Quakerbridge Road, the 119,000-square-foot buildings have collaborative spaces with flexible layouts and include 26,000 square feet of express office suites, as well as a 6,700-square-foot rentable event venue.” (Commercial Property Executive)
- National Retail Chains Closing at a Rapid Pace in NYC “Big retail is beating a retreat in the Big Apple. For the first time in 11 years, national retail chains are closing more stores in New York City than they’re opening, according to a new report. With rents rising and Amazon continuing its expansion, the number of local chain-store locations shrunk by 0.3 percent to 7,849 in 2018, according to the study by the Center for an Urban Future.” (New York Post)
- JP Morgan Chase Eyes Expansion of its Huge Campus in Plano’s Legacy West “Financial giant JPMorgan Chase is making plans to expand its huge Plano office campus. Almost a year ago, Chase opened its 1 million-square-foot regional office center as part of the $3 billion Legacy West development at the Dallas North Tollway and State Highway 121. The 49-acre project houses thousands of Chase workers in three big buildings served by two parking garages.” (Dallas Morning News)
- Here's Why Some Western Massachusetts Towns Are Welcoming Marijuana Stores “In Great Barrington, a marijuana business is renting a storefront between two toy stores. Edward Abrahams, vice chairman of the Great Barrington Board of Selectmen and its point person on marijuana, said he has heard some backlash from people who think that’s a bad idea. But Abrahams said residents won’t see marijuana in the window, children won’t be allowed inside, and the store can’t give away products. That is stricter than the regulations for liquor stores or for drug stores that sell opioids.” (MassLive)
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