S&ME’s Post

From storefronts to offices, Tenant Build Outs are everywhere. Some of your favorite stores are Tenant Build Outs that were once another business! #NoChangeOrders #ChaseGroupConstruction #CommercialConstruction #DesignBuild #Development #RealEstateDevelopment #LandDevelopment #Construction

🌴 Navigating the Brickell Office Landscape: Challenges and Opportunities 🏢 Miami’s Brickell district, once a hotbed of office leasing activity, now faces a pivotal moment. Let’s dive into the details: 🔍 The Situation: 3 Million Square Feet Planned: Ambitious developers envisioned new towers, adding nearly 3 million square feet of office space to the skyline. Zero Preleased: Surprisingly, none of these projects have secured leases yet. 🤔 Viability Questions: Will all three towers eventually find tenants, or are they destined to remain unbuilt? The absence of preleases raises concerns about project viability. 💡 Key Considerations: Preleasing Threshold: Typically, lenders require at least one-third of office space to be preleased before granting construction financing. Risk and Reward: Developers weigh the risk of proceeding without leases against the potential rewards. 🏗️ Major Players: Related Companies and Swire Properties: Pioneers in the Brickell office development wave. Key International and Banco Santander: Eager to replace existing office buildings. Ken Griffin’s Citadel: Expected to house offices for lease in its planned headquarters. 🚧 Current Status: While demolition work has begun on one of the Related-Swire towers, full-scale construction remains pending. Join the conversation! How can we shape the future of Miami’s commercial real estate? 🌟🏙️ #BrickellDevelopment #RealEstate

Great news. A struggling mid century office building in midtown East, near Grand Central Station, is poised for residential conversion, and will likely be the largest such project in the US, at perhaps as many as 1500 units. I’m well aware of the challenges facing residential conversion of office buildings. But with clever architects and engineers, realistic business plans (ie, not every building can be “premium” and charge “top of market” rents) and a low purchase price, a fair number of conversions are possible and they should be encouraged. We need housing far more than office space, and we should welcome more residents to our commercial districts, which have excellent infrastructure and are relatively underpopulated. Mentioned in the article is another conversion in the works, at 222 Broadway in lower Manhattan. This is a great example of reusing an undistinguished and obsolete structure that is no longer competitive as an office building. Many other midtown and downtown buildings should also be converted to residential use.

LEASED | Tenant Representation | Portland, Oregon Ethos Commercial Advisors assists Birdsmouth Design-Build in relocating their headquarters in Portland, Oregon. Devin Kopas, Senior Managing Director and Aneesah Rasheed, Director successfully negotiated a deal that aligned with Birdsmouth Design-Build’s business goals in a submarket with low supply of available space. Birdsmouth Design-Build specializes in high-performance building and design, creating zero-energy buildings that are healthier, more comfortable and resilient than the industry standard. Birdsmouth Design-Build needed to find a space in tight geographic parameters that aligned with the company’s mission and was conveniently located for employees and clients. This move helped Birdsmouth Design-Build to consolidate operations into a single facility that had both the office and warehouse space that they needed.  #tenantrep #industrialcre #tenantrepresention #occupier #design #crepdx #portland

Built in the 1920s, Tribune Tower is the 11th tallest building and a symbol of the city of Oakland. As the office market continued absorbing space in Downtown Oakland and rent growth continued in the next 12-18 months, the location of Tribune Tower had minimized risk exposure. We, alongside our partners Harvest, did a complete repositioning of an Oakland landmark property into best-in-class creative office. At 25% occupied and an additional 20% of the building rolling within two years, this vacancy allowed for Harvest to complete a seismic retrofit, address years of deferred maintenance including elevator modernization and implement major building systems repair and replacement. This work, coupled with the planned common area upgrades and a lobby renovation, presented a rare value-add opportunity to acquire a landmark building located at the heart of a rapidly evolving, supply-constrained urban environment with in-place rents significantly below market. As a part of the business plan, Harvest executed lease terminations associated with the previous owner’s EB5 business ventures and is planning on leasing the vacant spaces at market rates. Harvest upgraded the building through a lobby renovation, seismic retrofit, and elevator modernization. Tribune Tower was redeveloped to an institutional scale and quality that could attract institutional, high net worth, as well as public company investors. The property was sold to a high net worth individual, in January 2019. The new owner was looking to expand their downtown Oakland footprint and was willing to pay more than the institutional or public markets. Although the Bay Area is currently down, we think there is too many demand generators, innovators and institutions of higher learnings for it not to rebound, so we look forward to re-entering this market.

When we look at where we are seeing growth in the CRE sector at Asset Class , it’s pretty mixed based on region, but universally the Office-use sector is clearly the most challenged. It’s therefore not surprising to see the example highlighted in the post below by CoStar News. As we look across the sub-asset classes in our network of funds these key use cases emerge: - warehousing / logistics : supporting new distribution models, supply chain reengineering and e-commerce growth - self-storage : reflecting demographic and economic trends (widening affordability gap meaning settling for a smaller space when buying, increase in renting as a result, yet consumerism still high) - Mixed Residential (Rental + Retail), reflecting the work from home / rental-v-buy trend - Healthcare/ Medical usage growth, reflecting aging population coupled with rise in health-challenged 1st-world demographic. - Distressed asset funds: that take these kinds of projects with repurposing in mind to address : - Reisdential supply challenges: in many markets demand is significantly outstripping supply and as a result we see stratification of models and emerging financial structures including lease to buy, community / commonspace models, low-cost options for essential labor, student accommodation models with shared kitchens etc. CRE is changing dramatically, but I’ve got complete faith that the ingenuity of the sector coupled with investor support will see this cycle of change drive innovative thinking, innovative models and creative solutions to current challenges.

Prime Hoxton Office Portfolio Investment For Sale: Compton are thrilled to unveil the sale of Hoxton Campus on behalf of Aviva Investors compromising of an exceptional trio of buildings in the lively heart of #Shoreditch 🙌 A rare opportunity to acquire a portfolio of three prime central London office buildings. The campus features 32,379 Ft² of newly built and fully refurbished workspaces. Each building boasts EPC B ratings and impressive ESG credentials.   The Hoxton Campus is currently leased to five tenants, generating a topped-up passing rent of £2,059,316 /A. Guaranteed rental uplift in 2027. The Weighted Average Unexpired Lease Term (WAULT) to break is 2.49 years, and to expiry is 5.15 years.    We invite offers in excess of £27,545,000 subject to contract and exclusive of VAT. This reflects a capital value of £851 /Ft². and a Net Initial Yield (NIY) of 7.00%, assuming purchaser costs of 6.80%.   For additional information, please feel free to contact Kyle Joss [email protected], Milton Karamani [email protected], George Beard [email protected] or Shaun Simons [email protected] 020 7101 2020 Compton #architecture #officespace #realestate #investment #property #design #interiordesign #construction #art #building #notworkingfromhome #watchthisspace

Chicago's prepping for its grandest office makeover at 135 S. LaSalle St., transforming it into 430 sleek apartments. It’s a big project, with a big budget. They've secured $115M in TIF and $34M in Historic Tax Credits, funneling a hefty $150M of government funds into the project. Yet, 135's merely the start. With La Salle Street's TIF $434M budget at the ready. The conversion buzz is real as the city plans to boost the skyline with 2,822 units, ranking Chi-town fourth in the U.S., trailing only behind Dallas, NYC, and DC. But here's the catch: Amid the rush to upscale conversions, are we overlooking vital needs for affordable housing and stronger infrastructure? This bold move is sparking vital conversations on reshaping Chicago’s development agenda.

KARE 11 takes a look at Sherman Associates' office to housing conversion projects that are underway in both Minneapolis and St. Paul, as cities across the country seek to reimagine their downtowns. Northstar Center and Landmark Towers will deliver just over 400 housing units to the Twin Cities, where there's a growing trend of converting vacant office spaces into residential apartments. With many offices empty post-pandemic, Chris Sherman sees the opportunity to transform these downtowns into central living districts. Despite challenges like high costs and complicated financing structures navigated by Trevor Martinez, these conversions are vital for reviving downtowns, boosting housing markets, and stabilizing local tax bases. Plus, they're more sustainable than new construction projects, supporting local labor and reducing environmental impact. Watch the feature here: https://lnkd.in/guSMEUFw City of Minneapolis City of Saint Paul

LA office building sells at 52% less than 2018 price LOS ANGELES: A Los Angeles (LA) office building located near Century City and Beverly Hills has sold for about 52% less than its price five years ago. Harbor Associates and F&F Capital Group bought the five-story property at 1640 Sepulveda Boulevard for about US$44.7mil, according to a statement. The building last sold in 2018 for US$92.5mil. It’s the latest sale of an LA office building in a market that’s been pressured by the rise of remote work and financing challenges brought about by soaring interest rates. Recently, the Aon Centre in downtown LA sold for US$147.8mil, about 45% less than its previous purchase price in 2014. The building at 1640 Sepulveda Boulevard was constructed in 1987 and has had more than US$11mil in renovations, including upgrades to tenant spaces as well as a redesigned lobby. The building was 80% occupied at the time of the deal’s closing, according to the statement. “After several years of kicking the can down the road, we are now beginning to see distress hit the market,” Harbor principal Joon Choi said in the statement. “There are still compelling opportunities to find the hidden gems at a deep discount to replacement.” The deal is the second real estate acquisition for the joint venture in the past two months. Harbor and F&F also acquired an industrial portfolio in Carlsbad, California, for about US$21mil in November. #losangelesrealestate #californiarealestate #officebuildings #commercialproperty #commercialrealestate #commerciallending #commercialloans #commercialloan