Well, it’s done!
Wednesday was New Year’s Day. After champagne and chips, it’s time to get serious about your 2025 resolutions.
See also: Maryland, NoVA office vacancy rate remains high, but optimism grows from Q4 onwards
Look at the number on the scale, — After crying for about 20 minutes — Be proactive. Renew your gym membership. Throw out all the chocolate that has somehow accumulated in your candy drawer since Halloween. Try opening it skinny taste cookbook What I got for Christmas. (And get rid of the candy drawer too!)
Or you could do the more fun job of resolving to make better real estate deals in 2025.
“The industry is in a better position than it has been in years,” said Victor Calanog of Manulife Investment Management. Column with an eye toward 2025 JPMorgan Chase’s Al Brooks wrote exclusively for Commercial Observer. “It looks like it will be a relatively soft landing, maintaining positive momentum in economic activity and benefiting key drivers such as rentals, rents and occupancy.”
Although it’s still early in the year, the real estate industry already seems to be making progress in this regard. There were some last minute deals for the first day of 2024/2025 that I learned about last week.
This is Real Estate Maven’s solution list.
Resolution #1: I will spend less time in the office…not really!
To spend more time with my kids. (Actually, there are limits to the “Paw Patrol” that humans can do… bluey moviethank you. )
As we’ve already seen, many companies have finally scrapped their work-from-home policies and required everyone to return to the office. So that means more demand for offices. And Citadel had a great year. — 504,000 square feet Located at 660 5th Avenue!
The Fifth Avenue space will be used as offices while Citadel awaits construction of a mega project it is building with Rudin and Vornado Realty Trust (VNO) at 350 Park Avenue, which will occupy approximately 85 million square feet. (Completion is expected in 2032.)
Similarly, people in Los Angeles are slowly deciding to come into the office more. According to the new Report from Savillssome 13.7 million square feet worth of office deals completed Los Angeles will see office construction in 2024, with more than 3.8 million square feet of office construction built in the fourth quarter, the most office rentals in Los Angeles in a single quarter since 2020.
Resolution #2: Visit relatives in Florida more often.
Grandma and Grandpa may have been on to something when they bought their Florida condo 20 years ago.
“Telluride and South Florida used to be second home markets,” said Deb Motwani of Merrimack Ventures. in an interview “What happened during COVID-19 is that people realized that both South Florida and Telluride could be major markets.”
There is no better example of this than the following fact. most expensive land deal in South Florida history — Oak Row Equity bid amount 4.25-acre beachfront property at 1001 and 1111 Brickell Bay Drive from Aimco. Over $500 million — We signed the contract last week. (That’s just dirt!)
Additionally, Southeast Commercial, an affiliate of The Church of Jesus Christ of Latter-day Saints, $102.4 million plummets A Greystar affiliate provided the 284-unit Elan Polo Gardens Apartments, located just east of Wellington, Florida.
And retail is also a hot commodity in Florida. based in new jersey garden commercial facility spend $37 million For 95,000 square feet Publix– A permanent commercial complex called Plaza del Mar in Manalapan (approximately 17 miles south of Downtown West Palm Beach).
Resolution #3: Treat yourself to something new
Real estate prices have fallen. a lot. To substantiate this broad generalization, we highlight two transactions that CO reported last week.
First, within relativeis an investment firm headquartered in Lake Worth Beach, Florida. Just dropped $25.7 million Ballston Gateway, a 145,672 square foot, eight-story office property located at 3865 Wilson Blvd. arlington, virginia) to affiliated companies American real estate advisor. That’s 40 percent lower than the property’s appraised value at the beginning of last year ($42.1 million) and nearly a third lower than what American Realty Advisors paid for the property in 2003 ($35.2 million).
Second (also in Washington DC) BXP teeth spend $34 million Located in a 12-story, 302,000 square foot office building at 725 12th Street NW. Previously, Hines He acquired the same property in 1993 for $61 million. (As recently as 2015, the property was refinanced for $135 million.)
Perhaps these examples are more about D.C.-area real estate than larger trends. And, sure, there have been some modest gains in recently traded real estate in and around Washington, D.C. as well. for example, Rockwood Capital I sold 396 keys Tysons Corner Marriott at 8028 Leesburg Pike, prospect ridge The winning bid was $63.9 million, nearly $4 million more than the amount paid in 2018. but The hotel underwent approximately $25 million worth of renovations in 2022. I mean, there it is.
Either way, you need to make potential buyers aware of the deal.
Resolution #4: Pay off your debts
This doesn’t really need to be said, but it happens all the time.
RFR Holding faced foreclosure (or potential foreclosure) 3 separate properties Built in the last month of 2024, the newest is a 25-story office tower at 285 Madison Avenue.
And it’s just December. RFR also faced possible delinquency and foreclosure in previous months. 475 Fifth Avenue, 90 Fifth Avenue, 1 Jackson Square and 219 East 67th Street – and, The crown jewel of any portfolio: the Chrysler Building.
Resolution No. 5: Donate to Nonprofits
You can be cheeky here and give it to them. space — But you don’t have to. they actually reserve space already.
In January 2024, Paul Taylor Dance Company occupied 31,000 square feet at 307 West 38th Street.
Self-Help Community Services, a nonprofit organization serving seniors, acquired the 45,689-square-foot property at 1180 America Avenue in February.
In June, charter school Imagine Me Leadership signed a 30-year lease for an entire 63,000-square-foot building at 39 Truxton Street in Brooklyn.
And that’s just one example.
Why is this happening? Part of it has to do with lower rents and increased availability across the board, but another unexplored part has to do with taxes. When a nonprofit organization leases a property structured as a rental condominium for 30 years, it is exempt from taxes through the state treasury.
“We represent all the major companies in the office space, including Silverstein, Related, SL Green, and Brookfield, but because of all the changes happening in the business world, all companies are “We’re looking for tenants. There are enough people coming back to the office to fill major commercial buildings,” said Sri Cassirer, a lobbying firm in New York City. “So they’re increasingly turning to nonprofits.”
Do we do good by doing good?
There are New Year’s resolutions that we can all achieve.
See you next week!
