Office R/E Developer

CRE executive burner account

[Office R/E Developer @66x660]

Real Estate Development 101

– A Megathread –

https://t.co/sgaeKX5ryr

[Office R/E Developer @66x660]

Real Estate Development 101

"Make no little plans; they have no magic to stir men's blood."

–Daniel Burnham, architect

[Office R/E Developer @66x660]

@drorpoleg It’s 11:00 am on a Monday. The building directly across from my Boston hotel has a WeWork on one floor and there are two people in the entire space. The floor above has an Equinox with +50 people working out.

[Office R/E Developer @66x660]

I wholeheartedly agree:

“The relationship between economic activity and office demand has changed forever.” -@drorpoleg
https://t.co/151ZMIIiQ9

[Office R/E Developer @66x660]

“It used to be the value of free rent and TI allowances would make up about 20% to 25% of the value of a lease. It’s become more common for that to be 30% to 40% of a lease’s value.”

- @PhilariousRex of @CoStarGroup via @ashleytfahey
https://t.co/zhS15GWAGi

[Office R/E Developer @66x660]

Q: So, why did you issue a return-to-office mandate?

A: To help revive downtown areas, duh.

“City officials and business groups have repeatedly urged the state to bring workers back to rejuvenate local economies and revive downtown areas.”
https://t.co/QAdAUCFRN1

[Office R/E Developer @66x660]

9/ “So, we keep seeing market capitalization not reflect the risk of climate change like fires and floods.”

[Office R/E Developer @66x660]

Commercial real estate, climate risk, and the Tragedy of the Horizon.

1/ “As climate events mount, the risks and costs to property owners are rising.”

(via 2024 Emerging Trends in Real Estate, @UrbanLandInst and @PwCUS)

https://t.co/Nhpwi3z08T

[Office R/E Developer @66x660]

8/ “Daniel Kahneman got his Nobel Prize related this, about how short term our horizons are and how little information we use to make decisions.”

[Office R/E Developer @66x660]

“The office market faces unprecedented challenges over the next 18 to 24 months. Nearly $400 billion in office loans mature between 2023 and 2025. Of these, we estimate that $368 billion would have an LTV of 80% or greater if marked to market.”

- @Newmark

[Office R/E Developer @66x660]

@TripleNetInvest Which stage of office sector grief are we in:

Denial, anger, bargaining, depression, or acceptance?

Private market: bargaining/depression
Office REITs: depression/acceptance

[Office R/E Developer @66x660]

So many downtown San Jose speculative development projects hinge on Google building their 80 acre campus at Diridon Station.

“What Happens Now?”
- by @KevinNguyen_89
https://t.co/tkTMkVHH39

[Office R/E Developer @66x660]

@shaneparrish https://t.co/PILW65g0Gg

[Office R/E Developer @66x660]

Real Estate Development 101

"Make no little plans; they have no magic to stir men's blood."

–Daniel Burnham, architect

[Office R/E Developer @66x660]

In 2019, office buildings located adjacent to Caltrain stations were some of the most desirable and expensive spaces within their respective Bay Area submarkets.

Today, Caltrain ridership sits at only 29% of its pre-COVID level.

#WFH vs #RTO

[Office R/E Developer @66x660]

“Figuring out how to rent out office space for more than you pay for it has absolutely nothing to do with it.”

[Office R/E Developer @66x660]

“Adam Neumann figured out maybe the best and funniest way anyone has ever made money in the history of capitalism, which is ‘act crazy around Masayoshi Son until money spews out of him.’”

- @matt_levine