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July 10, 2023

Economic Uncertainty, Hybrid Work Lead To Record-High Availability In LA Office Market

Just Announced: Los Angeles State Of The Market Sept. 26

It's a tenant's world in the Los Angeles office market as the availability rate hit a new record high of 26.6%.

Second-quarter data on the market's performance tracked by Savills shows a variety of underperforming metrics linked to depressed demand for office space and a cautious business community.

Economic Uncertainty, Hybrid Work Lead To Record-High Availability In LA Office Market

Leasing activity was just 2.4M SF in the second quarter, a 15% drop from the 2.9M SF the market saw in the first quarter and a 12% decrease from the 2.8M SF reported in the same period of last year, according to Savills.“The vast majority of office tenants…

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Los Angeles Developer Found Guilty Of Murder-For-Hire, Arson

A federal jury has found California developer Arthur Aslanian guilty of a murder-for-hire plot and arson.

Aslanian was convicted Friday in U.S. District Court for California’s Central District for his role in the hiring of a hit man to kill two individuals, a person who had opposed him in litigation and a lawyer who had represented one of his companies in a bankruptcy, and for paying a different individual to set fire to a North Hollywood rental property he owned. 

Los Angeles Developer Found Guilty Of Murder-For-Hire, Arson

The targets of the contract killings were identified as M.Y. and S.E. in court documents. M.Y. had represented one of Aslanian’s companies in a bankruptcy, then threatened litigation after the developer failed to pay over $261K in legal fees, according to a release from the Department of Justice. S.E. won…

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How Special Servicers Handle Troubled CRE Loans This Cycle Will Be Different Than Past Downturns

How Special Servicers Handle Troubled CRE Loans This Cycle Will Be Different Than Past Downturns  

With roughly $50B in CMBS loans tied to office buildings maturing in the next 18 months, special servicers — the firms hired by CMBS trusts to resolve issues as they arise — are about to be very busy.

The number of properties that have been transferred to special servicing is on the rise, but unlike the last two times special servicing rates shot up — in 2020 at the onset of the pandemic and during the Global Financial Crisis — interest rates are already…

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Office Values Down 27% Over Last 12 Months, Apartments Drop 16%

Office Values Down 27% Over Last 12 Months, Apartments Drop 16%  

Office property values dropped 27% during the 12 months ending in June, according to Green Street, the most of any property type. Office assets lost 6% in value in June 2023 alone. Overall, the Green Street Commercial Property Price Index was down 11.6% compared with a year ago, and was down 0.8% for…

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Weekend Interview: Swire President Henry Bott On Miami’s Growth And Building A New Hub Of Finance

Weekend Interview: Swire President Henry Bott On Miami’s Growth And Building A New Hub Of Finance  

This series goes deep with some of the most compelling figures in commercial real estate: the deal-makers, the game-changers, the city-shapers and the larger-than-life personalities who keep CRE interesting.

Henry Bott has been embracing the Miami lifestyle since he moved to its Brickell neighborhood in January after being named president of Swire Properties.

He spends time outside with his two kids and explores the food scene on Saturdays with his wife, but he’s been having trouble finding the time to get outside of Brickell, where Swire has been developing properties since 1979 and recently announced two new projects.

Bott runs the U.S. real estate arm of Swire Properties — a Hong Kong-based company that is part of the UK-based conglomerate John Swire & Sons — which announced in June that it was partnering with Mandarin Oriental Hotel Group on a branded hotel and residence project that will occupy the last development site on Brickell Key, an exclusive island just off the mainland. 

Just a month earlier, Swire and Related Cosstarted demolition at the site of One Brickell City Centre, a planned 1,000-foot-tall office tower that would be the tallest commercial building in Florida and that Bott says will help cement Brickell as the top destination for financial firms relocating from northern cities. 

The 1.4M SF office tower will add to Brickell City Centre, a mixed-use complex covering 9 acres that includes office space, a hotel and retail mall. Bott’s been busy there as well, helping to secure tenants for the 500K SF of retail space that first opened in 2016 as a luxury mall but has shifted in recent years toward lifestyle-focused retailers. 

In this interview, Bott speaks about the commercial real estate landscape in Miami, how his experience developing mixed-use projects in Asia informs his South Florida strategy and why he believes Brickell is going to become the “Wall Street of the South.”

This interview has been lightly edited for length and clarity.

Bisnow: You arrived in Miami about six months ago. What have you learned so far about the city, and how are you and your family adjusting to your new home? Bott: I arrived in mid-January and so it's been about six months, but I've loved it…

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