A Rocky Forecast For Retail After $500M Hit
Researchers say that record-high temperatures—brought about by El Nino—have created a $500M drop in retail sales this past holiday season. With population-heavy centers in the Northeast on track to post record—or near-record—temperatures in November and December, Planalytics president Scott Bernhardt says retailers had no choice but to sell winter goods for "pennies on the dollar."
Fed Raises Rates, Signaling A Strong Economy
After years of anticipation and uncertainty, the Federal Reserve finally announced its first interest rate increase since 2006, which amounted to a modest 0.25% hike. While many across the industry are concerned about a potential tightening of lending capital or further increases in the coming months, Fed chairwoman Janet Yellen reminds us that the increase is an indication of a strong economy, which, Forbes says, could lead to even higher rental and sale prices.
Brooklyn Developer Seeks Change For More Office Space
Wishing to add more office space to her 25 Kent Ave development, Williamsburg developer Toby Moskovits is seeking to eliminate a restriction that requires more than half of former manufacturing zone properties be used for medical, school, nonprofit or religious facilities. If successful, other developers could to do the same in former manufacturing zones.
Blackstone’s Stuyvesant Town Deal Comes With 1M SF Of Air Rights
This week, Blackstone Group and Ivanhoé Cambridge announced that their $5.45B purchase of the Stuyvesant Town/Peter Cooper Village complex comes with 1M SF of air rights worth $625M. Blackstone is expected to hold on to a quarter of those air rights and transfer the rest to other developers throughout the city.
45 Broad St Slated To Be Among The Tallest Condo Buildings Downtown
At 1,100 feet and 86 stories, 45 Broad St is slated to be one of the tallest condominiums in downtown Manhattan. The Financial District supertall tower will have 245 units catering to “entry- and mid-level buyers,” as well as five floors of commercial and retail space.
Multifamily, Retail Drive Uptick In December CMBS Delinquencies
Dragged down by the multifamily and retail sectors, CMBS delinquencies rose 4 bps to 5.17% in December. Many are blaming the multifamily troubles on the $3B worth of debt associated with Blackstone and Ivanhoé Cambridge’s Stuyvesant Town/Peter Cooper Village development and the “two-year-long malaise” of retail delinquency rates.
Second Avenue Subway’s 2016 Opening Creates UES Residential Boom
According to The Real Deal, the opening of the Second Avenue Subway’s second phase in late 2016 has caused optimistic developers to construct a number of luxury condominiums, including Related’s 465k SF tower at 205 East 92nd St, Anbau’s upcoming sale of 360 East 89th St, Icon Realty Management’s 1562 Second Ave, Florida developer Chance Gordy’s 1059 Third Ave, Joe McMillan’s luxury condo tower at 180 East 88th St, legendary developer Ben Shaoul’s 389 East 89th St—the largest in the Upper East Side—and Corigin Real Estate Group’s 20 East End Ave.