Asking retail rents in Manhattan continued their decline in the first quarter with a 5.1% drop from the previous quarter and a 13.4% year-over-year decrease, according to CBRE. The number of direct ground-floor availabilities also rose, although there were certain significant leases signed during the quarter.
Vornado Realty Trust plans to raze the Hotel Pennsylvania in Manhattan as part of plans to create a premier development site around Pennsylvania Station. The REIT is also planning a tracking stock for the projects around the station.
Companies in Europe, the Middle East and Africa put their real estate holdings on the market last year at a brisk pace, selling $32 billion of corporate properties, up slightly from the previous year, according to Jones Lang LaSalle. "What we are witnessing is a wholesale rethink from many enterprises on their relationship to real estate," says JLL's Mark Caskey.
Although vacancy rates for regional malls are high, foot traffic measurements at top tier malls by Placer.ai offer positive signs for the future of the asset class. Shopping centers' "continued capacity to rebound quickly when given the opportunity speaks to the continued strength in the sector, and explains why the format still deserves its lofty position within the retail landscape," the report finds.
Prologis has acquired a UK warehouse property formerly owned by Arcadia Group. Prologis is leasing the property to the fashion retailer Boohoo.
Vacancy rates in Washington, D.C.'s residential rental market have increased during the pandemic, with Delta Associates finding that apartment vacancy rates rose to 12% in some parts of the city by the end of last year.
Because of their scale, REITs and private equity funds active in the market for single-family rental homes may be in good position to weather the impact of the financial stress that some tenants are feeling. Single-family rental REITs delivered strong total returns in March, and John Burns of John Burns Real Estate Consulting notes that "the publicly traded REITs have been disclosing very minimal payment problems."
The former head of Japan's $1.63 trillion Government Pension Investment Fund appeared eager to focus on investments with an ESG focus, but certain obstacles have cropped up. The fund is bound by rules that constrain its approach even as funds in other countries take proactive steps. "Under current legislation, we can't sacrifice returns for the sake of buying environmental names or ESG names," notes GPIF's Kenji Shiomura.
Performing a cultural assessment is a key step as companies look to promote racial equity in the workplace, says Dawnita Wilson of JBG SMITH. "I think the metrics are one part of understanding where you're starting from, but I think the other side of that is having conversations -- whether it's focus groups, roundtable discussions, whatever those need to be," Wilson says.
Total returns for the FTSE Nareit All Equity Index clocked in at 5.53% for March and 8.32% for the first quarter. "We are seeing what are increasingly positive signs about the months ahead in terms of economic activity," says Nareit's John Worth.
- Page 1