- More retailers file for bankruptcy twice as they struggle with rising debt, pressure from Amazon “Retailers like Barneys and RadioShack have found themselves on the brink twice — going through a bankruptcy filing once, emerging, and then heading back to court, again. In cases where the company files specifically for Chapter 11 twice, the scenario is referred to as Chapter ‘We deal with the sick industries, and retail has been a sick industry for a while,’ said Stephen Selbst, chair of the restructuring and bankruptcy group at New York law firm Herrick Feinstein..” (CNBC)
- Mayoral race goes from bad to worse for real estate “Perhaps the biggest blow came Sunday when Bronx Borough President Ruben Diaz Jr. — one of two major Democratic candidates accepting donations from real estate companies and professionals — revealed he would leave politics when his term expires in two years. Diaz has ambitious plans for redeveloping swaths of his home borough. ‘Not that he was a huge champion of the real estate industry, but without him in the race, there isn’t anyone who is going to be seen as a champion or standard bearer for the real estate industry,” said political consultant Gerry O’Brien.’ (The Real Deal)
- Berlin Adopts Five-Year Freeze to Rein In Soaring Rents “The initiative put forward by the Left party’s Katrin Lompscher, head of urban development and housing, is intended to ease the burden on tenants after a property boom caused rents to double over the past decade. The political intervention has spooked investors as a separate campaign attempts to force Berlin’s government to expropriate properties from large landlords including Deutsche Wohnen SE.” (Bloomberg)
- Hong Kong, hurt by US-China trade war, protests, replaced by Tokyo as Asia-Pacific’s largest commercial real-estate market in 2019 “Business activity in Hong Kong has also been affected by the Wuhan coronavirus outbreak, which will have ‘short-term implications on investment volume’, according to property consultancy CBRE. The company added that, with the exception of 2018, owing to a one-off large commercial property deal in Hong Kong, Tokyo had always been the largest commercial real-estate market in Asia-Pacific.” (South China Morning Post)
- Co-living: The Future Of Real Estate? “With more and more of India’s younger population migrating to cities for work, this concept of community living is drawing greater demand. These members of the population are often newly graduated from college and their concerns are mainly financial. They find it difficult to afford the rent for the houses they want and are finding their solution in sharing. Additionally, living alone, away from home can be a daunting prospect, and so, the concept of co-living helps these people find a collective to stay with, where they can flourish.” (BW Disrupt)
Five Must Reads for the CRE Industry Today (Feb. 3, 2020)
CNBC takes a look at the growing trend of retailers filing for Chapter 11 bankruptcy twice in relatively short time frames. The Real Deal breaks down the New York City mayoral race from the real estate industry’s perspective. These are among today’s must reads from around the commercial real estate industry.