Demand for office space could drop as some large companies scale back their footprint and embrace hybrid working models. Landlords, however, note the collaborative value of in-person work and point out that, unlike previous recessions, businesses with large numbers of office workers are in relatively good shape.
JPMorgan Chase CEO Jamie Dimon is expecting a return to the office for many of the company's 250,000 employees, although smaller groups may continue under a hybrid model or with a full-time remote-work arrangement. Dimon noted that the apprenticeship model is key for bank employees and that "remote work virtually eliminates spontaneous learning and creativity."
Apartment leasing in Manhattan rose by 89% last month on a year-over-year basis to reach 4,986, according to a report by Miller Samuel and Douglas Elliman Real Estate. The rise is due in part to the availability of bargains on the market, with average discounts for rented units reaching 6.8%.
Prologis has sold a 22-building industrial portfolio totaling more than 2.5 million square feet of space in the Twin Cities areas to the Blackstone Group for around $247 million. Blackstone then sold 1 million square feet of the portfolio to other buyers for $86 million.
Terreno Realty has acquired two industrial properties in Hialeah, Fla., from affiliates of Florida East Coast Industries for $50 million. The recently completed buildings, which total 274,000 square feet, are fully pre-leased.
Ascenty, a Brazilian data center business owned by Digital Realty, plans to build five more facilities in the country after raising $925 million in credit. Anchor clients have already been found for each facility.
The owners of Syracuse, N.Y.'s, Destiny USA have reportedly hired a financial advisor and law firm as they consider how to restructure $286 million in municipal bond debt and nearly $430 million in commercial mortgage-backed securities. The mall, the largest in the state, is owned by Pyramid and has lost major retailers J.C. Penney Co. and Lord & Taylor.
Developer Rick Caruso will accept bitcoin as a rent payment at his nine outdoor malls, he announced Wednesday. Elon Musk, who leases a space at the Americana at Brand center in Glendale, could be the first tenant to pay with bitcoin, Caruso said.
Luxury retailer Hermes is leasing the former Sears store in Los Angeles' Westfield Topanga Mall. The mall is being redeveloped to include entertainment and public plazas and will be completed before Hermes opens in 2023, according to a mall leasing agent.
A SPAC formed by Lamar Advertising Co. has filed for an initial public offering that could go as high as $345 million. The SPAC will seek to merge with a company in the out-of-home advertising, communications and technology sectors.