The Bisnow Weekender: And You Love The Game
Welcome to the weekend — and welcome to the inaugural edition of The Bisnow Weekender.
I hope this weekly briefing will become your first read as you ease into a well-earned weekend with a curated roundup of the most impactful news, notable quotes, binge-worthy show recommendations and other colorful highlights from the world of commercial real estate and beyond.
This week in real estate, mortgage rates of 8% stifled home sales, causing economic ripples across the U.S. economy and CRE; a prominent office developer reassessed the future of his profession; President Joe Biden earmarked $500M in federal funds for 31 U.S. tech hubs; global data center capacity is set to triple in six years, according to reports.
Additionally, WeWork's potential bankruptcy has already begun to affect landlords, and retail vacancies hit a 15-year low. Meanwhile, two major New York City real estate firms passed the torch to the next generation of their families — and they primarily anointed their daughters to take the proverbial thrones.
Also, a reminder: Halloween is next week, and the end of daylight saving time is just around the bend — this Sunday for the United Kingdom and Nov. 5 in the U.S. Scroll down to read more.
— Mark F. Bonner, Bisnow Editor-in-Chief
VOICES FROM THE CRE BATTLEFIELD
“Guys like us, who made our living on office, we’ve got to find something else. … I do think there will be office buildings built again, but I’m 63 years old. The chance for me to do another spec office building in the next seven years, right now those prospects don’t look very bright." — Greenstone Properties founder De Little, who spoke to Bisnow Atlanta reporter Jarred Schenke for a story this week.
“The vultures are starting to gather, and there will be significant pain.” — The Mount Vernon Co. founder Bruce Percelay, who discussed at Bisnow’s Boston State of the Market event last week how Boston’s CRE pain could be an opportunity for some.
“After nearly eight years, Anthony Yazbeck will be leaving WeWork at the end of October. Since joining WeWork, Anthony has played a critical role in our global expansion, further strengthening our team, and driving our commitment to deliver best-in-class office space and services for our members.” — WeWork CEO David Tolley, in a statement to Bisnow after more executive turnover at the embattled coworking provider this week.
“WeWork’s been fighting a rearguard action for pretty much four years solidly now. Certainly recently, the losses have been huge. It’s not new news for landlords in that sense. They’ll have known this moment was coming, and some of them would’ve prepared for it and some of them won’t.” — Bisnow UK Editor Mike Phillips on this week’s Bisnow Reports podcast, referring to WeWork's troubles after its botched initial public offering in 2019 — and the looming possibility of a WeWork bankruptcy.
“If we've hit bottom, we might stay there and drag along the bottom for a while, but we’ve seen the bottom.” — JLL Senior Managing Director for Capital Markets Jeremy Neuer at Bisnow’s New York Office event this week.
“When I initially went out to the Bay Area, it was my intent to have success on and off the court.” — four-time NBA champion and Golden State Warriors great Andre Iguodala on his decision to pivot into startup investing after retiring from the NBA this week — including investing in a modular construction business.
THE BEST OF BISNOW NEWS: OCT. 22-27
As 8% Mortgage Rates Quash Home Sales, Economists Warn Of A 'Huge Ripple Effect' — D.C. reporter Emily Wishingrad
Property Preservation: The Dark Horse Of Downturns You've Probably Never Heard Of — DFW reporter Olivia Lueckemeyer
'We’ve Got To Find Something Else': Office Developers Forced To Reckon With Their Futures — Atlanta reporter Jarred Schenke
31 Communities Selected As Regional Tech Hubs Eligible For Parts Of $500M Federal Pie — Houston reporter Maddy McCarty
'The Numbers Start To Add Up': Global Data Center Capacity Expected To Triple In Next 6 Years — data centers reporter Dan Rabb
PODCAST: How A Possible WeWork Bankruptcy Is Likely To Hit Office Landlords — New York reporter Miriam Hall
Retail Vacancy Reaches Lowest Level Since At Least 2005 — Deputy Newsletter Editor Kayla Carmicheal
Office Amenity Wars Are Out. Flexibility, Short Commutes, Cool Neighborhoods Are In — New York reporter Ciara Long
Rise In Shoplifting Has Made Retail Private Security The New Cost Of Doing Business — Houston reporter Maddy McCarty
Silverstein Properties Ousts CEO Marty Burger — New York reporter Ciara Long
Rudin's Next Generation Taking Over As Co-CEOs. Bill Rudin Explains Why Now — New York reporter Miriam Hall
SLIDE INTO MY DMs … CLIMATE RESILIENCE PRO
SLIDE INTO MY DMs … REAL ESTATE LENDING EXECUTIVE
MY MEDIA DIET THIS WEEK
Thanks To Big Data, Landlords Know How To Squeeze The Most Out Of Renters — WSJ
NYC Homeowner Costs Are Rising At 3 Times The Inflation Rate — Bloomberg
Global: Relative Return Index Signals CRE Opportunities In 2025 — Oxford Economics
America’s Downtowns Are Empty. Fixing Them Will Be Expensive — WSJ
Analysis: China's Property Market Woes Prompt Buying Spree In Japan — Nikkei Asia
The Frightening Economics Of Haunted Houses — The Hustle
The Last New Beatles Song, 'Now And Then,' Will Be Released Next Week — AP
Ella Fitzgerald And Mel Tormé Answer 'What Is Jazz?' — Kottke
'The American Buffalo': A Film By Ken Burns — PBS
BISNOW WEEKEND INTERVIEW PREVIEW
Bisnow UK Editor Mike Phillips sat down with Ekaterina Avdonina, CEO of logistics specialist Mirastar, to discuss building a business with KKR, the prospects for the logistics sector, how growing up during the collapse of the Soviet Union makes her resilient to uncertainty and what it is like being a rare female CEO in commercial real estate.
Bisnow: Tell us a little bit about your background and how it led you to where you are today.
Avdonina: I was born in Kazakhstan, in a closed military town called Leninsk. The first man who went into space, Yuri Gagarin, the flight was launched from the town where I was born. My dad was a scientist in the Russian military, so we moved around a lot.
I don't remember much about Kazakhstan because I was quite little when the Soviet Union collapsed, and we then moved back to Moscow. But [Leninsk] was also very specialised. It's one of those towns where you can't get in or get out because it was a military town. It was just a very strange kind of experiment on people’s lives.
It shaped me in a lot of ways. Because we travelled so much, our life was always disrupted. So I'm OK with dealing with change — I’m not attached to things as much as maybe a lot of people are. I embrace change, I like the disruption, I like what it brings, and I think that helps me a lot in business.
ON THE NEXT EPISODE OF BISNOW REPORTS
This week on the Bisnow Reports podcast, JLL Chief Technology Officer Yao Morin advises real estate industry players on how to approach artificial intelligence:
“Don't be afraid of it. I will encourage you to read about it, and then talk to people who are using it and then get some expert inspiration on how to use it in the right way. I see AI technology as similar to how mobile technology comes to life. In the 1980s, we wouldn't imagine mobile technology would be such an important, essential part of our day-to-day life. Can you imagine going out your door without your cellphone with you? You can't.”
New episodes drop every Monday. You can subscribe on Apple Podcasts, Spotify and Amazon Music.
BIG QUESTION OF THE WEEK
QUESTION: Coming out of the pandemic there were a lot of predictions for CRE. What are the ones you were most wrong about and why?
Head on over to Bisnow’s LinkedIn page to post your thoughts. We’ll run some of what you have to say in this space next.
JOBS! JOBS! JOBS!
Here are this week’s top jobs over at Bisnow's careers platform, SelectLeaders. Reach out to SelectLeaders Managing Director Ryan Neale to learn more. You can email him at [email protected].
VP of Acquisitions & Asset Management — Work for a premier Southeast Class-A office owner/operator
VP & Assistant General Counsel — Join a growing Midwest retail developer
President/CEO — Serve as the champion for growth and vitality of Downtown Memphis
Executive Director & General Counsel — Serve as the chief legal officer to the CUNY Construction Fund
BISNOW EVENTS AND WEBINARS NEXT WEEK
- Wednesday, Nov. 1: Philly Restaurant, Retail & Mixed-Use Summit
- Thursday, Nov. 2: New Jersey Multifamily Conference
- Thursday, Nov. 2: Supply Chain Visibility: A Critical Driver To Achieve Your ESG Goals
- Thursday, Nov. 2: Seattle Office Market Update
- Thursday, Nov. 2: Miami Fall Schmooze
HEY, KAYLA, WHAT ARE YOU GOING TO BINGE THIS WEEKEND?
The Scream franchise along with my first viewings of the Twin Peaks prequel and The Blair Witch Project! Also, I am queueing up Taylor Swift's latest rerecording of her first six albums — 2014's 1989 is her fifth and was marked as her first official leap into pop music. — Kayla Carmicheal, Bisnow deputy newsletter editor and resident Gen Zer
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How did we do? You can send all love letters and dissent directly to me at [email protected]. I would love to hear from you — and I might even publish your letter in this space next week (100 words or less, and please send it from your business email with your full name, job title and company). I will always ask your permission before publishing it.
