Happy Friday to All!

Over the past 16 months, Amazon has listed over 14mm sf of distribution space for sublease in the U.S. Homebuilder sentiment drops to the lowest since the end of 2022. Loan workouts are on the rise as property values drop. Hotels embrace VR and AR technologies to provide a better guest experience. Tech companies increasingly favor shared workspaces. And coffee chains are rapidly expanding as demand rises.

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Capital Markets

Market News

• FDIC Chair finds himself answering questions about workplace culture by members of the Senate Banking Committee and House Financial Services Committee in what was supposed to be a discussion on proper oversight of the banking industry. The workplace scrutiny comes as the FDIC makes the push for larger capital requirements from banks. A requirement some argue would hurt lending and the broader economy (Yahoo)

• Walmart CEO hints at possible deflation this holiday season as general merchandise and key grocery items like eggs, chicken and seafood get cheaper. Inflation has been challenging for retailers as shoppers hold out for items to go on sale before buying them (CNBC)

• New report shows global efforts to prevent global warming from rising by more than 1.5 degrees Celsius (2.7 degrees in Fahrenheit) in 2030 are falling short with only one of 42 indicators on course to meet its 2030 target. The authors of the report propose phasing out 240 coal plants a year, boosting wind and solar power, reducing deforestation rate 4x faster, among other initiatives to help meet goals by 2030 (CNBC)

• TV ad revenue is expected to continue declining as consumers continue to move away from traditional cable subscriptions. One Analyst expects the overall TV ad market to drop by 12% in the current quarter (Yahoo)

• AAA is projecting 55mm Americans will travel over 50 miles this Thanksgiving Holiday. People traveling this weekend are likely to avoid the worst of the weather. A large storm is expect to form over central and eastern U.S, by Tuesday night / Wednesday morning impacting major travel hubs like Atlanta, Baltimore, Boston, Detroit, New York City,, Philadelphia, and others (TravelPulse)

• Disney releases study showing it has a $40bn economic impact on Florida as it continues its battle with the Florida Governor over the takeover of the district that governs the entertainment company’s theme park in Orlando. The dispute began after Disney opposed the Governor’s law banning classroom lessons on sexual orientation and gender identity in early grades (abcNews)

• Bud Light’s Chief Marketing Officer quits after reporting a 13.5% decline in revenue per 100 liters. The CMO did not directly oversee the controversial partnership from earlier in the year (Yahoo)

CRE Headlines

• Amazon placed multiple industrial facilities for sublease in October. Over the past 16 months, the company has listed over 14mm sf of distribution space for sublease in the U.S. Amazon recently listed a 1.1mm sf facility in Atlanta, a 350k sf property in San Antonio, and a 219k sf warehouse in Fort Worth on the sublease market (Bisnow)

• Hotels embrace technology to provide a better curated customer experience. Digital check-ins, smart room amenities, augmented environments, beacon technology, and other data driven tech is reshaping the hotel guest experience (HotelManagement)

• Homebuilder sentiment drops to lowest level since end of 2022. More builders are reporting cuts in prices in November. The Wells Fargo Housing Market Index reported a six point drop to 34 in November, with anything under 50 considered negative. The sentiment is down 22 points since July (CNBC)

• Loan workouts return with banks looking at loan extensions, loan sales, recapitalizations, and foreclosures as values for commercial real estate plummet. The FDIC’s sale of Signature Bank’s $33bn CRE loan portfolio is expected to attract bids over 40% below face value. As borrowers go to refinance, many are finding values have decreased and working on loan modifications with lenders (REBusinessOnline)

• NYC Council approves bills aimed at developing a land use and infrastructure plan for industrial zones and creating housing production goals for each neighborhood (CommercialObserver)

• Coffee chains are increasingly expanding across the U.S. Consumer demand grew by 85 to $49.5bn over the last 12 months, 104% of pre-pandemic value. The sector is expected to add another 5.2k coffee shops by 2028 (Bisnow)

• Tech companies are more likely to implement shared workspaces than other sectors (JLL)

  Shared Seating Across Industries

  

• New rules around Airbnb in NYC has owners of one and two family homes claiming they are fighting off foreclosure. Since Local Law 18 went into effect in September, many of the one and two family home owners claim they can’t afford their expenses without the rental income from Airbnb (NYPost)

Deals Deals Deals

Sales

• Office: Kaiser Permanente acquires Station Place III, a 507k sf office building in Washington D.C. where it occupies 200k sf for $198mm (CommercialObserver)

• Industrial: Tempus Realty Partners acquires a four-property industrial portfolio for $78mm. The Carlstar Group, a supplier of tires and wheels, executed a sale-leaseback across the 1.4mm sf portfolio spanning SC, TN, and WI (commercialsearch)

• Office: Strada Investment Group to acquire a 260k sf office asset in San Francisco, CA from KBS Realty Advisors for $68mm. KBS purchased the asset in 2013 for $121mm (YIMBY)

• Senior Housing: St. Agatha Catholic Church acquires a 137-unit affordable housing asset for seniors in Miami Beach, FL for $37mm (CommercialObserver)

• Industrial: KORE Investments acquires a vacant 175k sf manufacturing facility outside of Charlotte, NC for $14mm from the previous owner-occupant, Hunter Douglas (commercialsearch)

• Industrial: A JV between Clear Height Properties and Harbert US Real Estate acquired a 122k sf light industrial facility in Bloomington, MN (REJournals)

Debt

• Multifamily: Codina Partners obtains a $115mm construction loan from Goldman Sachs for a 122-unit apartment development in Coral Gables, FL (connectcre)

• Multifamily: Greystar secures a $99mm loan to refinance a 282-unit luxury multifamily community in Denver, CO. Otera Capital provided a three-year, floating-rate loan to replace the previous $96mm loan from HSBC (connectcre)

• Medical Office: Coffee Medical Group secures a $21mm refinance from X-Caliber Rural Capital for a 49-bed medical center in Manchester, TN (CommercialObserver)

Developments

• Student Housing: C.W. Driver Companies begins construction on a $56mm, 198-bed student housing complex in Los Angeles, CA (connectcre)

• Industrial: A JV between Rockefeller Group and Matan Cos. plans to develop a 5mm sf industrial and logistics center in Suffolk, VA. Phase I is expected to deliver 2.4mm sf across five buildings starting in 2025 (commercialsearch)

• Multifamily: Bayhill Ventures planning to build a 672-unit apartment tower in San Francisco, CA. The proposed tower would be the third tallest building in the city at 840 feet in height (YIMBY)

• Multifamily: Trammell Crow completes a 363-unit apartment community in Plano, TX (REBusinessOnline)

• Office: Fulton Street Companies breaks ground on a 409k sf office development in Chicago, IL’s Fulton Market neighborhood (REJournals)

• Data Center: CyrusOne to build a new 280k sf data center in San Antonio, TX with expected delivery by end of 2025 (DCD)

Distress

• Office: An affiliate of Apollo Global Management filed for foreclosure on 660 North Capitol St. NW, a 202k sf office asset owned by Republic Properties in Washington D.C.. The asset used to lease 25k sf to WeWork (Bisnow)

Capital Raising

• Multifamily: SGI Ventures and the Housing Authority of the City of Austin obtain $17mm in Low-Income Housing Tax Credits from Hunt Capital Partners for the development of a 100-unit affordable housing project (REBusinessOnline)

Leasing

• Data Center: TA Realty signs a 430MW build-to-suit lease agreement for its entire five-building 1.9mm sf data center campus in Leesburg, VA (DCD)

• Industrial: Nova Medical Products signs a 92k sf lease in suburban Chicago, IL at TradeLane Properties’ 410 Smoke Tree Plaza (REBusinessOnline)

Meme Summary

Merch Spotlight