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April 26, 2023

Retail’s New Normal Delivers New Wrinkles In Lease Terms, Negotiations

Clarion Partners' Margaret Egan Discusses Market Dynamics In Fairfield County May 4

Retail’s e-commerce and pandemic-charged shakedown has changed the tenant-landlord relationship.

Deals have gotten more complicated amid constricted cash flow and rising interest rates, while the scars of rent forbearance and payment disputes have landlords pushing for more stability in their leases, retail industry leaders said Tuesday at Bisnow's National Retail Conference at 1540 Broadway in Manhattan.

 

Retail’s New Normal Delivers New Wrinkles In Lease Terms, Negotiations

“It’s not just about great real estate, it's about great landlords,” said Taryn Brandes, the founder of retail brokerage and advisory firm Brand Urban. “Security and guarantee has been negotiated in a way that I've never, never seen before."Retail tenants hoping to sign new leases will increasingly find themselves on…

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L&L, Mitsubishi Default On $93M Plaza District Office Loan

L&L, Mitsubishi Default On $93M Plaza District Office Loan

The owners of the office portion of Metropolitan Tower in the Plaza District of Midtown Manhattan have reportedly stopped making payments on their mortgage, and the lender is looking for an exit, The Real Deal reports.L&L Holding Co. and Mitsubishi Corp. own the 18-story commercial condo…

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'Frightening Tsunami': Office Investment Nose-Dives In Q1 To Lowest Point Since 2010

'Frightening Tsunami': Office Investment Nose-Dives In Q1 To Lowest Point Since 2010  

Investment in office properties across the country fell 68% in the first quarter to $10.7B, the lowest level since 2010 and an indicator of the degree of deep freeze property markets plunged into after their most challenging year in more than a decade.

Sales of all property types declined, according to Colliers, citing new MSCI data. But in the face of rising interest rates, shriveled office demand and grave uncertainty about the direction of the economy, office trades fell furthest and fastest, with many owners selling for a loss as valuations dropped through the floor.

“It’s a frightening tsunami of problems coming at us, because there’s not a lot of demand for office — especially for Class-B and C buildings,” Compass Vice Chair Adelaide Polsinelli told Bisnow. "This is absolutely the new normal where properties, especially office, are selling at losses. Valuations have…

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