Welcome to The First Draft, Bisnow’s new daily newsletter!

We’ll be hitting your inboxes Monday through Friday with the biggest stories of the morning from all the major national and international news outlets — plus all the great CRE trades and releases straight from the deal-makers themselves. 

Our goal is to get you up to speed in a few minutes, so we’ll summarize each item for a quick scan and keep the tone light and easy to read. A team of Bisnow editors curates The First Draft each day, and it is in essence a peek into our newsroom’s morning news meeting. Expect us to flag tons of stories that are still developing — it’s the first draft of the day’s news, after all. 

This morning we’ve got the early tidbits from the WeWork bankruptcy hearing underway — Bisnow New York Reporter Sasha Jones is covering it live. She has already reported this morning that WeWork is closing its corporate headquarters and one of its largest locations as it approaches the endgame of its bankruptcy proceedings. 

In other news of the day, single-family rentals are on the legislative agenda around the country, as a new Democrat-sponsored federal bill would force institutional SFR investors to sell to families, while a Republican-sponsored bill in Ohio is one of a slew of state proposals to increase taxes in an attempt to disincentivize investor ownership of homes.

Let us know what you think about The First Draft at firstdraft@bisnow.com. 

— Mark F. Bonner, Catie Dixon, Jay Rickey and Kayla Carmicheal

Today’s newsletter is about a 7.5-minute read.

On Our Radar

• WeWork’s latest hearing started at 10 a.m. ET. WeWork's attorneys confirmed in court that Cupar Grimmond, the mystery holder of a large amount of the coworking company's secured debt, is actually Yardi. Yardi is providing a majority of the bankrupt firm's exit financing and will control 60% of the company moving forward, according to a court presentation in New Jersey Monday morning. Bisnow will have a story on the hearing later today.

• Cushman & Wakefield’s earnings call is at 5 p.m. ET today. It’s the first major brokerage to report, so we’re eagerly awaiting the release of its earnings report to get our first sense of whether the sector is rebounding after a painful 2023.

• April 29 is National Supply Chain Day. Lots of bad news on this front lately, but here’s some good news: The Port of Baltimore accepted its first container ship on Sunday.

This Morning’s News

Republic First Bank Fails (NYT): Philadelphia-based Republic First Bank (not to be confused with First Republic Bank) was seized by regulators Friday. This action reflects ongoing concerns about stability among regional banks. Read more about the bank's failure.

Busy Weekend For WeWork’s Docket (Bisnow): As WeWork’s Monday hearing loomed, lawyers spent the weekend filing motions and requests. WeWork secured debt financing and put together an amended plan to exit bankruptcy, Adam Neumann asked the court to block that plan, and landlords were displeased to learn the motion calling for an independent examiner to investigate the case was adjourned. And then Monday morning, WeWork rejected the lease for its corporate HQ and one of its largest coworking facilities, a more than 300K SF location in Midtown Manhattan. See the latest from WeWork’s bankruptcy and get the details on its HQ closure.

Potential Regulatory Actions Against Homebuying By Wall Street (WSJ): With Wall Street firms having invested billions in residential properties, regulatory scrutiny and potential crackdowns are on the horizon. This anticipated action could reshape investment strategies and impact the housing market significantly. Understand the potential looming crackdown.

Surge In Commercial Real Estate Debt Sales (Bloomberg and CO): Commercial real estate debt is on the rise, with CMBS originations surging 170% in the first quarter. That shows deals are starting to flow again, though the industry clocked a sluggish $5.4B in U.S. office real estate sales during Q1. Explore the CRE debt market dynamics and office sales trends.  

Today’s Deep Dive: A Decade Of Demolition Without Substantial Development Has Reset Retail

How is retail like Buffy the Vampire Slayer? An apocalypse isn’t going to get it down. It wasn’t that long ago that the conversation around retail was all doom and gloom, but now the sector has seen record-low vacancy rates for more than a year. Last quarter, vacancy was a mere 4.1%. 

The secret is the wrecking ball. About 155M SF of retail space has been torn down in the last five years, while construction was stunted, according to CoStar. Now retail is actually becoming a victim of its own success, as businesses report not being able to expand due to limited space.  

Bisnow National Reporter Dees Stribling has the full story here. 

New NBA Arena To Anchor Vegas Strip Development (LVXP): A developer has announced plans for a mixed-use development on the Las Vegas Strip, centered around a new NBA arena. This project aims to be a major attraction, potentially revitalizing the area and boosting local economic activity. Learn about the Vegas development.

Downturn In Multifamily Housing Starts (RealPage): Multifamily housing groundbreakings dropped significantly in March to the lowest level since March 2020. This indicates a nearing peak in new developments. Review the multifamily market analysis.

Stability In Multifamily Housing Occupancies (Cushman & Wakefield and CoStar): Despite a record number of new multifamily units being delivered, occupancy rates remain strong. C&W’s managed portfolio recorded an occupancy increase of 176 bps year-over-year to just 40 bps below their August 2023 peak, and CoStar found that 104,000 units were absorbed in Q1, the largest figure since Q3 2021. Explore the latest trends in multifamily occupancies and read about the spring leasing outlook.

Q1 Big Tech AI Spending = Data Centers (Bisnow): Earnings reports from big tech companies show they are spending billions more on artificial intelligence infrastructure than expected. Wall Street hasn’t quite decided what to make of it, but the benefit to data centers is clear. Learn about the aggressive data center expansions from Microsoft, Google and more.

Leadership Change At Altus Power (Altus): The CEO of CBRE-backed Altus Power has resigned. This leadership transition comes at a critical time for the company, following significant initiatives such as a $1.6B acquisition by a CBRE-sponsored SPAC and a commitment to decarbonize a large real estate portfolio. Learn about the CEO's resignation and review Altus Power’s recent activities.

Business Travel Nears Pre-Pandemic Levels (WSJ): Airlines and hotels are experiencing a significant rebound in business travel. Bookings are still nearly 20% below 2019 levels in the U.S., but they are forecast to exceed 2019 globally by the end of the year. This resurgence is a positive indicator for the travel and hospitality industries, which were among the hardest hit during global lockdowns. Read about the recovery in business travel.

LVMH: A Real Estate Powerhouse Beyond Luxury Goods (WSJ): Known primarily for its high-end fashion, LVMH is also making significant strides in the real estate sector, transforming neighborhoods into luxury plazas worldwide. This strategic expansion leverages its brand influence to reshape urban landscapes, enhancing the value of its properties through exclusive shopping and living spaces. Explore LVMH's real estate ventures and learn about their global impact.

America's Largest Private Landowner Enters Solar Energy (WSJ): Weyerhaeuser, the country’s largest private landowner, is set to become a major player in solar power generation. The lumber producer is converting more than 100,000 acres it owns across 11 states into solar farms, a significant pivot to renewable energy, utilizing extensive land resources for sustainable power production. Discover the solar initiative.

MedMen Declares Bankruptcy Amid Financial Struggles (Morningstar and Bisnow): Once hailed as a unicorn of the cannabis industry, MedMen has filed for bankruptcy with $411M in liabilities. This downfall highlights the volatile nature of the cannabis market and the challenges companies face in scaling operations sustainably. MedMen's aggressive expansion in past years, despite increasing losses, ultimately contributed to its financial difficulties. Read about MedMen’s bankruptcy and their previous expansion strategy.

New Culinary Destinations At The Mall (CNN): Restaurants are taking more space in malls than ever before, with nearly 20% of mall space dedicated to food today compared to 5% in the ‘90s. That includes a mix of hot new restaurants and popular chains like Ruby Tuesday and Chili's. Explore the latest in mall dining trends.

Cousins Properties Raises Its Outlook (CoStar): Cousins Properties increased its guidance for 2024 as it reports notable gains in leasing and tours from increasing return-to-office trends. Read about the return-to-office impact.

Whitestone REIT Responds To Calls For Change (Whitestone and Erez): Following Erez Asset Management's call for strategic changes, Whitestone REIT's Board of Trustees issued a statement to “set the record straight,” addressing concerns and outlining their stance on the company's direction. This public response aims to reassure investors and clarify the board's strategies moving forward. View the board’s response and review Erez’s earlier call for change.

REITs Explore Nontraditional Property Investments (CoStar): REITs are increasingly shifting their focus toward nontraditional properties such as data centers, healthcare facilities and even farmland. Office investment fell from 23% of REIT acquisitions in 2019 to 17% last year, and multifamily acquisitions fell from 13% to 6%. Learn about REITs' strategic shifts.

Retailers Adjust to Ozempic's Impact (NYT): Retailers are navigating the challenges and opportunities presented by the popularity of Ozempic and similar weight-loss drugs. As these medications influence consumer health trends, stores like GNC and Vitamin Shoppe are exploring ways to respond effectively to the changing needs of their customers. Explore retailers' strategies.

Buffett’s Real Estate Firm Pays $250M In Antitrust Settlement (WSJ): Warren Buffett's real estate firm has agreed to a $250M settlement in an antitrust case. HomeServices was the last remaining defendant in the National Association of Realtors case alleging competitive practices violations, and all told, that association and the four major residential brokerages have agreed to pay $940M in settlements to homeowners. Read about the settlement.

Sergey Brin's Startup To Launch Carbon Removal Plant (Bloomberg): A carbon removal startup backed by Google co-founder Sergey Brin is gearing up to launch a new plant in the U.S., aiming to scale up technologies that mitigate environmental impact. Discover the new plant's details.

NASA Chief Expresses Concern Over Lunar Real Estate (QZ): NASA's administrator, Bill Nelson, has voiced concern about China potentially seizing strategic locations on the Moon, highlighting the geopolitical implications of lunar exploration. This stems from the increasing number of nations and private entities showing interest in the moon's resources, which could lead to conflicts over space real estate. Read about the lunar real estate concerns.

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The First Draft is your first glance each morning at everything happening in the world of commercial real estate — market-rattling deals, consequential personnel shake-ups and major business and policy headlines. We’d love your feedback! Email us at firstdraft@bisnow.com. 

The First Draft is produced by Director of Newsletters Jay Rickey, Managing Editor Catie Dixon, Editor-in-Chief Mark F. Bonner and Deputy Newsletter Editor Kayla Carmicheal with an assist from ChatGPT.