In the News—Week of August 9 2021
Around the Nation
Small businesses able to take advantage of chaotic NYC commercial landscape
With COVID-19 and rising crime, running a small business in New York City has been more difficult than usual. But the commercial real estate market is giving businesses a reprieve, Market Watch reports. They have been able to take advantage of tenant-favorable conditions. Some have negotiated periods of free rent and flexibility on the length of the term. Data from CBRE shows landlords are asking about 4% less than before the pandemic.
Energy & Environment
U.S., Canada agree to work together on energy efficiency
Contractor reports that the United States Environmental Protection Agency and Natural Resources Canada have signed an agreement to continue working together on addressing energy efficiency in buildings. “Improving energy efficiency in buildings is essential to achieving our ambitious climate targets,” EPA Administrator Michael S. Regan says. “Today’s agreement with Natural Resources Canada will continue a 10-year research partnership between our agencies, empowering American and Canadian building owners to reduce energy use, save on costs and cut climate pollution.” The two agencies will continue to work improving the EPA’s Energy Star Portfolio Manager, a tool that tracks energy, water, waste for commercial buildings.
Houston industrial market sees record quarter for activity
Houston enjoyed its highest amount of leasing activity on record in the second quarter, RE Journals reports. Data from NAI Partners shows 12.5 million square feet were leased in the quarter, more than double the 6 million in the same period the previous year. Houston’s industrial vacancy rate stood at 9%. The metro area has seen positive absorption for 12 straight years.
Dallas-based CBRE buys 60% of United Kingdom firm
Dallas-based titan CBRE is buying a 60% stake in Turner & Townsend Holdings Ltd., a London-based firm that provides project and cost management, The Dallas Morning News reports. CBRE is spending $1.3 billion on the deal, which the company hopes will expand its international footprint. The Dallas company will allow Turner & Townsend, which has clients in 46 countries, to operate independently. “It is an exceptionally well-run company with a first-rate brand, enviable client base and expertise that complements our capabilities,” CBRE’s CEO, Bob Sulentic, says.
Phoenix tallest building will get a new name as Chase moves out
The Chase Tower, a 40-story building that has been the tallest in Phoenix for almost 50 years, will be vacant by Oct. 1, KJZZ-radio reports. Chase has been relocating workers to a campus in Tempe for three years. “This move will also reduce the company’s real estate operating costs in metro Phoenix, savings we’ll reinvest in our strategic campuses to provide advanced facilities, work environment and accommodations for our employees,” a spokeswoman for the bank, Maura Cordova, said. The Chase logo will go, too. The building was completed in 1972 as the home of Valley National Bank. Bank One acquired Valley National Bank and Chase later acquired Bank One.
Nearshoring fuels growth in Monterrey industrial market
In the second quarter, Monterrey’s industrial real estate market absorbed 381,885 square meters as trends in nearshoring have created a boom, Mexico Business News reports. The city, the second largest in Mexico, now had 12.3 square meters of industrial; 14% of the national market. The city is an attractive hub for Canada and U.S. firms but for domestic distribution as well. Monterrey may overtake Mexico City in the industrial market, says Sergio Mireles, CEO of Datoz, a leading provider of commercial real estate data in Mexico.