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10 Must Reads for the CRE Industry Today (Oct. 19, 2020)

Commercial real estate companies being behind the times on tech adaptation as well as overall corporate cultures that are “stuck in the past” could be causes for concern in recruiting and retaining new talent, according to Bisnow. The New York Times has analyzed Joe Biden’s proposed tax policies and what they would mean for various sectors and high earners if they are enacted. These are among today’s must reads from around the commercial real estate industry.

  1. Can CRE Shake Its 'Mad Men' Office Culture Before Losing Next Generation Of Talent? “While commercial real estate has embraced more technology in recent years, especially when it comes to conducting market research, automating aspects of prospecting and improving overall workflows, it’s still ‘a decade behind’ residential, Feinberg said. Corporate culture is often similarly stuck in the past.” (Bisnow)
  2. Running the Numbers on Biden’s Tax Policy “If he becomes president, Joe Biden has pledged to increase taxes on large companies and high earners. This has become a talking point for both campaigns: Mr. Biden pitches it as a way to fund growth-boosting stimulus, while President Trump says it will derail the economic recovery and scare companies away.” (The New York Times)
  3. Pressure on New York City Commercial Real Estate Worries Investors “Although stock markets are near records, assets whose fortunes are more directly tied to New York’s status as a heart of tourism and culture are showing acute sensitivity to the pandemic’s disruptions. Prices for debt backed by hotels and shops have fallen, new loans have slowed and lenders are more cautious, leaving bankers and the real-estate industry bracing for a hard hit.” (The Wall Street Journal)
  4. Blackstone Signs Deal to Buy $1.6B in India Commercial Properties “Less than half of a year after launching its second India REIT IPO, Blackstone could be heading for another trip to the bourse, as the US private equity giant signs a preliminary deal to purchase $1.6 billion in commercial property in the southern half of the country. (MINGTIANDI)
  5. Marching Orders for the Next Investment Chief of CalPERS: More Private Equity “Ben Meng got the job of chief investment officer of CalPERS by convincing the trustees of the nation’s largest public pension fund that he could hit their target of a 7 percent annual return on investment by directing more of the fund’s billions into private equity.” (The New York Times)
  6. Vornado Secures $500M Refi for Manhattan Tower “Vornado Realty Trust has received a $500 million refinancing package for the 1.2 million-square-foot PENN11 in Midtown Manhattan. The interest-only mortgage carries a LIBOR rate of plus 2.75 percent and a maturity date set for October 2025.” (Commercial Property Executive)
  7. Two Silicon Valley hotels default on loan amid coronavirus-linked lodging slump “Two hotels in Silicon Valley have defaulted on their mortgages and face murky futures, fresh evidence that the economic woes unleashed by the coronavirus may widen. A mortgage on the hotels, one in Sunnyvale and one in Mountain View, has landed in default and could be foreclosed, public documents filed in September in Santa Clara County show.” (SiliconValley.com)
  8. Firm Pivots to Core/Core-Plus Opportunities in Market Stall “Excelsa provided 100% of the equity of the transaction, which represents the firm’s first core/core-plus acquisition of a newly constructed class-A multifamily property, first Dallas MSA acquisition and first Green Globes-certified acquisition. The firm raised an $85.6 million closed-end fund to acquire $500 million in US multifamily properties.” (GlobeSt.com)
  9. 72 percent of Houston hotel loans are in danger during COVID pandemic “Houston’s hotels are floundering during the pandemic. Seventy-two percent of securitized lodging loans in the area are delinquent, according to securities data company Trepp, compared to 23 percent across the nation.” (Houston Chronicle)
  10. Big Tech’s NYC Land Grab, by the Numbers “1.6 million square feet: That’s how much Big Tech’s real estate footprint in New York City has expanded since the beginning of 2020. Amazon, Apple, and Facebook have all bought or leased large swathes of office space in the city this year, much of it during the pandemic, per the New York Times. That’s not even counting the 1.7 million square feet that Google announced it would be adding to its office space in the city last December.” (Marker)
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