Connect with us


Real Estate Roundup 4.22.20

Prologis Leadership (Credit: Prologis)

Real Estate Roundup:


  • Clothing retailers are sitting on tens of billions of dollars of unsold merchandise, and the usual methods for clearing it out aren’t working as stores are closed. Off-price chains like T.J. Maxx that would normally snap up the excess are also closed. Liquidators, often a last resort, are already saddled with goods from bankrupt retailers that have halted their going-out-of-business sales. Some companies are packing away goods with the intent of selling them next year, a process known as hoteling. (WSJ)
  • Pier 1 Imports will temporarily stop paying rent and delay making other payments as the home-goods retailer tries to keep costs low and preserve liquidity, the latest company in bankruptcy to win relief from paying its bills… Modell’s Sporting Goods wants to delay its Chapter 11 proceeding for an additional month as well and gain reprieve from paying rent. The landlords are appealing Judge Papalia’s March 27 order granting the original pause. (WSJ+Law360)


  • Prologis granted rent deferrals to just 7 percent of its tenants who asked for help because of the coronavirus. The industrial REIT projected the pandemic will accelerate the shift to online shopping and will lead some companies to keep more inventory on hand than they had in the past. For instance, 40 percent of the new leasing Prologis has undertaken recently has been to e-commerce firms, compared to just 23 percent pre-pandemic. (TRD)


  • Travis Kalanick’s CloudKitchens is well positioned to benefit from the pandemic lockdown as its tenants serve the fast-growing online food-delivery market. But the company is struggling to overcome early challenges, limiting how much it can take advantage of the crisis. Certain properties it has bought have turned out to be in worse shape than anticipated, making some of them unusable and sharply raising the costs of renovating others. While CloudKitchens has bought at least 70 U.S. properties, only about 10 appear to be operational. (Information)
  • Google’s parent company Alphabet in recent weeks has broken off talks to buy or lease more than 2 million square feet of office space in the Bay Area, including what would have been one of the largest ever real estate deals in San Francisco. The retrenchment could portend a broader real estate shakeup in the tech industry’s epicenter, where firms are grappling with both an economic downturn and the possibility that many employees will want to continue working remotely for some time to come. (Information)

Development filings 

  • The Department of Health filed plans for a 10-story lab near the Harlem Hospital Center at 22 West 137th Street. The department initially announced plans for the 200,000-square-foot center in 2018. The roughly $400 million project is expected to open around 2025. (TRD)


  • Avison Young has made cuts to its tri-state workforce. One source told TRD that the figure was as high as 100. That would represent roughly a quarter of the tri-state employees the brokerage had grown to since launching in the region in 2012. (TRD)

Other news

  • The Saudi’s Public Investment Fund (PIF) closed on a major capital investment into the Related Companies in the first week of February. The deal was in the form of convertible debt, convertible into 15% of the equity of Related. (VanityFair)
  • Insurance premiums for apartment buildings have been rising faster than for the rest of commercial real estate. Renewal rates for multifamily insurance increased 33% on average over the past year, compared with 23% for the real-estate sector at large. The jump in insurance costs has come as a surprise to many apartment landlords who for years counted on predictable premiums. NY-based landlord Raphael Mandelbaum said: “Industry standards would be to underwrite a 2% or 3% increase… So the 7% was a big jump.” (WSJ)

Continue Reading
To Top