In the News—Week of February 2 2021
Around the Nation
New York City’s industrial property market enjoys a boom
Crisis in commercial real estate in the Big Apple? Fuggedaboutit! The New York Post reports that the industrial sector is booming. “We had as much growth in the first three months of the pandemic in 2020 as in the last 10 years,” JLL’s Rob Kossar says. What is fueling it in New York City is what is fueling the industrial sector everywhere — e-commerce. JLL estimates New York will need to add 30 to 40 million square feet by 2025. All the new industrial facilities are in New Jersey, Queens and Brooklyn. “There are zero in Manhattan so most will be serviced from outside,” Kossar says. And that is going to have to change.
Energy & Environment
Vermont city spends $500,000 in rebates to help residents
The city of Burlington has spent $500,000 on its “green stimulus package,’’ VT Digger reports. The city is hoping incentive rebates for energy efficiency will help the local economy. Mayor Miro Weinberger says the incentives have helped install 175 heat pumps in residents in town. The city has budgeted about $800,000, but the mayor says the municipality can “find a way” to provide more funding.
Skanska USA chooses JLL to manage Green tower in downtown Houston
Skanska USA Commercial Development has hired JLL for management and consulting services for its Green office development, the Houston Chronicle reports. A 28-story tower at 1550 Lamar St. is the first part of a planned three-block project near Discovery Green Park. “JLL is honored to work with Skanska on this iconic office tower that is being designed with cutting-edge technology, critical to the offices of the future,” JLL Managing Director Connie O’Murray says.
Dallas YMCA is trying to sell building, move to new home
The Dallas YMCA, which expressed interest in selling its 211,000-square-foot downtown property in 2019, has decided to go through with it, The Dallas News reports. The T. Boone Pickens YMCA building occupies about 1 acre and is across the street from the Fairmont Hotel. Curt Hazelbaker, president and CEO of the YMCA of Metropolitan Dallas, says the sale will hinge “upon finding the right solution for the Y, our members and community.” The YMCA has owned the building since 1988.
Big deals: Phoenix ranks among leaders for 1-million-square-foot property sales
Last year may not have been a great year for making many deals, but it was an excellent year for making big deals. The United States saw 48 leases of 1 million square feet or more, AZ Big Media reports. Figures from CBRE show there were only 29 leases of that size in 2019. “Industrial continues to be the most in-demand asset class in commercial real estate,” CBRE’s John Morris says. “As more consumers shopped online during the pandemic, and as retailers stocked more inventory to meet demand and avoid shortfalls, large industrial transactions hit record highs in 2020. With the fourth quarter recording the largest single-quarter for industrial net absorption on record, we expect strong demand to continue in the new year.” Phoenix had three such deals, which tied it for ninth place with Memphis. Atlanta was the leader with 13. Dallas-Fort Worth, Southern California’s Inland Empire, and Interstate-71/81 corridor in Pennsylvania tied for second with 11 each.
Pandemic inspires resorts to become more creative
The luxury segment of Mexico’s Baja Peninsula was booming before the COVID-19 pandemic. The resorts and real estate developments closed in March, reopened in stages, and were facing an uncertain climate. That required adjustments on the fly, Barron’s reports. At Villa Del Palmar Beach Resort and Spa, the decision was made to shift building to infrastructure. At Pueblo Bonito Golf & Spa Resort, management decided to focus on professionals who could work remotely and might find a vacation spot in Mexico more appealing than a cramped apartment in a no longer vibrant city.