Power Finance is live! – Commercial Observer

Finance


Real estate has always been a gluttonous business, but in moments of historic crisis, like this one for example, nothing more.

It’s the perfect opportunity to forge the true steel that the pros demand. It’s when you know what you’re made of. It distinguishes between the precocious little kids in the industry and the serious adults.

Survival of the fittest was very much on our minds when Commercial Observer struggled on our list The Most Powerful People in Commercial Real Estate Financefell last Tuesday.

CO deputy editor and financial editor Cathy Cunningham, along with reporters Andrew Coen and Brian Pascus (along with a handful of freelancers), explores what it takes to sift through the data, call big companies, and adjust the pecking order. I spent months. The world of finance is fluid.

it was one year That’s how the Federal Reserve played and beat borrowers, banks, and alternative lenders on every front Role of spoilers A steady stream of interest rate hikes continued from last week.

This is not to say that the big banks are pulling out. JPMorgan Chase literally couldn’t have done better in our rankings – and that ranking was determined well before Chase’s other big bombs last week. Acquired First Republic Bank After the latter collapsed. (Al Brooks, his Chase at No. 1, contributed a column on the trends he’ll be watching for the rest of the year. here.) Even banks smaller than Chase are investing interesting project.

but there is a possibility more pain bank, smart alternative lender Recognize that this is their time in the sun.

In fact, some alternative shops like 3650 REIT are this is the moment they were createdalternative lenders like ; Nuveen’s Jason Hernandez We are working desperately to get money into an underfunded market. All that CO tried to capture.

Power Finance’s complete list is a great snapshot of today’s bond and stock markets and worth a slow read.

think differently

Despite the trepidation and pullbacks on the part of the market, this moment is ‘when luck strikes’.

That’s what I told Commercial Observers legendary real estate player Andrew Farkas. S.commercial real estate Forum in Lower Manhattan last week. And others seemed to agree.Despite New York political headwinds There was even optimism on that front, though it lowered everyone’s expectations for significant advances in affordable housing.

“We see an opportunity to absorb some of that surplus. [office] Melissa Roman Birch, CEO of the New York City Economic Development Corporation, said: “Work is still being done in Congress to promote conversion.”

Moreover, the way business is conducted is ripe for reinvention. “Today’s market environment creates a perfect opportunity for the larger commercial real estate market to become more data-driven,” said HqO’s Chase Garbarino, who also spoke at the forum. “Commercial real estate does a better job than any other industry at assessing the financial viability of its customers. would hardly understand.”

Unsurprisingly, the office market remains a pain in the city and property market in general. For those skeptical about the natural rebound of offices and the city’s ability to truly foster viable transformation plans, one solution is flex spaces.

However, the main flex operator (Read: WeWork) I’m upset. market novice.

live and love

Looking beyond the funky pockets of pain in today’s market, housing seems to work well.

Both Yardi and CBRE Published report Last week we saw rents rising in the multifamily sector, up 0.25% in March (according to Yardi), double the month-to-month growth from January to February.

In addition, the vacancy rate is also on a downward trend. CBRE’s Matt Vance said, “It’s starting to stabilize, the fundamentals are stabilizing, but we’re not quite there yet. We’re not stable and vacancy rates are still rising. , demand was basically flat in Q1 2023, but we are heading in the right direction.But we believe these fundamentals are heading in the right direction.”

Speaking of housing, there’s money, especially if the project is in South Florida.Secured by Katarufumo $340 million construction loan To build ultra-luxurious Ritz-Carlton branded condominiums in Palm Beach Gardens from Madison Realty Capital.because the money is there house is sold(In addition to crazy sales and loans, no week goes by without a Major Food Group announcement. new lease or partnership —and last week was no exception.)

Speaking of love…

One of the surprising romances in real estate these days is Between construction and proptech.

This was not always the case. Technology has been reactively avoided by many contractors as a formidable alternative to human work. However, it was also difficult to use at construction sites where Wi-Fi was not available.

“when [construction management software firm] professional core When it went public, they attributed the ubiquity of Wi-Fi on construction sites to their growth in the 2010s. Era Ventures(Procore’s current market capitalization is over $7 billion.)

What are you saying, McKay?

We heard some interesting news from Cushman & Wakefield (CWK) last week — President and Chief Operating Officer Michelle MacKay said, promoted to top position With the resignation of CEO John Forrester, who will resign in June,

McKay has an interesting background. He worked at iStar, UBS, JP, Morgan, Chase, and HIMCO before he became COO in 2020.

“I look forward to leading this great company through its next chapter of strategic growth,” McKay told CO. But it also delivers long-term value, profitability and growth. ”

Andrew McDonald will assume MacKay’s previous role as Global President and COO.

rest in peace

Finally, we sadly have to end the week.

Two of the industry’s longtime powerhouses have passed away. Fisher Brothers Stephen Fisher, Passed away At age 63, complications from a recent medical procedure and John C. Cushman III (his grandfather co-founded Cushman & Wakefield) Died at age 82. rest in peace.

See you next week.



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