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Office Properties

All articles tagged with #office properties

business2 years ago•2 min saved

Impending Crash: US Office Real Estate Prices Plummet as Commercial Values Slide

Investors are predicting a severe crash in the US office real estate market, citing high interest rates and declining property values as key factors. A Bloomberg News survey revealed that around two-thirds of respondents believe the market will only recover after a crash. The majority expect office property prices to hit bottom in the second half of 2023 or the first half of 2024. The Federal Reserve's aggressive interest rate hikes have increased financing costs for commercial properties, coinciding with reduced demand. Investors are also concerned about a potential crisis triggered by $1.5 trillion in debt coming due by the end of 2025. Vacancy rates are at 30-year highs in many American cities, with New York City experiencing a 22.2% vacancy rate in Q1 2023. The commercial real estate sector's return to prior strength remains uncertain, particularly due to the shift to remote work and online shopping.

via New York Post |

#business #commercial-real-estate #debt

real-estate2 years ago•1 min saved

SL Green sells stake in 245 Park Avenue for $2.0B.

SL Green Realty has sold a 49.9% stake in 245 Park Avenue to a US affiliate of Mori Trust Co. Ltd. for a gross asset valuation of $2.0B. The sale is the largest part of the company's financial plan for 2023, following its $500M refinancing of 919 Third Avenue in April. The deal comes as a boost to the NYC office property REIT as the shift to hybrid work models has reduced demand for office properties.

via Seeking Alpha|

#asset-valuation #mori-trust-co-ltd #new-york-city

real-estate2 years ago•4 min saved

Commercial Real Estate Market Struggles as Office Landlords Sell at Discounted Prices.

Despite a virtual standstill in the sales market for office properties, New York-based REITs SL Green and Vornado Realty Trust are planning large-scale asset sales this year to raise cash and buy back shares. SL Green is looking to achieve the largest single-year debt reduction in the company’s history and to buy back its stock, while Vornado will look to sell a mix of retail and office assets to fund its share buyback program. Both companies are under pressure to shore up their balance sheets as their stock prices plummet and debt costs mount.

via The Real Deal|

#asset-sales #office-properties #real-estate