Commercial Real Estate

Several recent topics in the news discussed:

  • Smaller leases shape office demand in the DFW area
  • Commercial property debt due to mature in 2024 totals $929B, up 40% from earlier estimates
  • Hopes of lower interest rates fade as inflation comes in higher than expected
  • As Ozempic slims waistlines, it’s beefy up on CRE
  • Downtown Dallas office tower sells for $8M

“It’s not the market I care about, it’s the deal.”

Last week, I was in the office of a Billionaire real estate investor, who was discussing all of the deals he has in progress. He’s currently acquiring hundreds of millions of dollars of NYC real estate through purchasing distressed debt, partnership buyouts, recapitalizations, and outright building sales.

New York has

  • Lower interest rates
  • CRE loan expirations still plague industry
  • Continued distress for office
  • WeWork rejects more leases
  • Conversions no panacea to office distress
  • Insurance costs ballooning
  • NAR under fire

How is the game, Jenga like commercial buildings?
Landlords want stability while tenants want flexibility – what to do?
Tenants should negotiate for all their rights prior to signing the lease such as early termination, expansion rights, right of first refusal, renewal options, etc.
Landlords face risks such as financial, economic, tenant failure, sublease competition, etc.

Retail vacancy across the nation is down to 4.7%, the lowest it has been since 2007. One retail asset manager of over 100 shopping centers told me, “The only spaces I can’t rent are the ugly spaces, and even those are starting to get a little attention.” Add in the continuing rise of retail sales (up .02% year over year,

Chapter 7, entitled “Ruled by the Ruler” of our book, Confessions of a Recovering Landlord, is all about measurement of commercial spaces. Feel free to email me at Jan@TexasTenantRep.com and I’ll email this chapter of the book to you for free.

What really happens when a bunch of brokers gets together for a couple of days away from the office?? Learn how Bob navigated the treacherous waters of the most recent SIOR convention in Chicago!