Urbanexus Update - Issue #118
Urbanexus Update - Issue #118
H. Pike Oliver assembles this weekly selection of real estate and community development news. Some items are behind a paywall.
Urbanexus Update will be on a summer break for the next couple of weeks. Expect to see issue #119 on August 24, 2020.
The economy
The U.S. Department of Commerce reports activity in the economy as measured by gross domestic product (GDP) changes at an annual rate. It makes for easier comparisons in normal times, but greatly overstates the size of short, sharp drops like the one we experienced in the second quarter of 2020. Still, that drop was pretty dramatic--and debilitating for many people.
CRE markets hurting despite FED help
“During the last recession, you saw an 80 percent to 90 percent drop in real estate transactions over a two-year period,” said William Blair analyst Stephen Sheldon. “This time you’ve seen nearly the same decline in a much shorter time frame year-over-year.”
Economic impact of COVID-19 in the U.S. As COVID-19 spreads around the U.S. leaving economic upheaval in its wake, this snapshot reveals how major economic indicators are trending.
Office
Discounted office tower sale in L.A. — labusinessjournal.com
The building’s owner, Singapore-based OUE Ltd. is selling the property for $430 million. That’s up from the nearly $368 million the company paid for it in 2013. When news broke last year that the tower would be sold, experts projected it could fetch $700 million. And OUE’s annual report last year valued the property at $650 million. The buyer for the deal, which has not yet closed, is New York-based Silverstein Properties Inc.
Residential
Seattle could provide template for national multifamily recovery — rebusinessonline.com According to RED Capital Research’s data, Seattle’s effective rent is likely to stabilize by late-2020. Multifamily rents may return to pre-pandemic levels during the second half of 2021.
Retail
California Pizza Kitchen bankruptcy
California Pizza Kitchen (CPK) is the latest fast casual restaurant chain to file for bankruptcy protection due to strain brought on by the coronavirus (COVID-19) pandemic. The Playa Vista-based (Los Angeles area) company did not release a list detailing which of its 200 restaurants it plans to close
Wednesday: The logistics industry has transformed the Inland Empire of Southern California. Its next destination? The Central Valley.
Regional and metropolitan dynamics
Suburbs are not what they use to be — www.bloomberg.com
In his ongoing campaign to paint racial desegregation as a bid to “abolish the suburbs,” the president is pushing a vision of suburban voters based on a dated demographic reality.
Community design and development
A worldwide Marshall Plan can create healthier cities An urban epidemiologist from Cambridge University explains how a global Marshall Plan can improve planetary health, safeguarding the future of fast-growing cities.
Rethinking the Japanese balcony — www.japantimes.co.jp In Japan, the balcony is generally considered to be a utilitarian space but people are beginning to see the potential in this outdoor space.