fareastwarriors Posted October 9, 2020 Share Posted October 9, 2020 Microsoft will let employees work from home half the time https://www.cnbc.com/2020/10/09/microsoft-implements-new-hybrid-remote-work-policy.html Link to comment Share on other sites More sharing options...
LearningMachine Posted October 10, 2020 Share Posted October 10, 2020 Microsoft will let employees work from home half the time https://www.cnbc.com/2020/10/09/microsoft-implements-new-hybrid-remote-work-policy.html Actually, it is more than that. In the same article, it says: Employees can work from home full time with manager approval. They can also move to a new location for remote work, with salaries adjusted based on geography if their manager approves. Imagine the repercussions on currently expensive real estate prices close to Microsoft. All it would take is a small percentage of people moving to exurbs for big estates or closer to their families in other cities to impact the incremental supply/vacancy rate. 20% vacancy/incremental supply had a huge impact on Detroit house prices. Link to comment Share on other sites More sharing options...
Nomad Posted October 13, 2020 Share Posted October 13, 2020 JPMorgan sticks with plan to build giant New York headquarters https://www.reuters.com/article/us-jpmorgan-results-realestate/jpmorgan-sticks-with-plan-to-build-giant-new-york-headquarters-idUSKBN26Y2HP?il=0 Interesting metaphor, to say the least: An illustration by Lewis Garrison, a 3-D architectural illustrator who likes to make video flyovers of skylines, here envisions JPMorgan's new headquarters towering over Midtown Manhattan, a T-Rex in what might seem like a field of dinosaurs. Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 13, 2020 Share Posted October 13, 2020 Larry Fink Wants Future With Just 50% of Workers in Offices https://www.bloomberg.com/news/articles/2020-10-13/larry-fink-wants-future-with-just-50-of-workers-in-offices?srnd=premium . Dropbox is the latest San Francisco tech company to make remote work permanent https://www.cnbc.com/2020/10/13/dropbox-latest-san-francisco-tech-company-making-remote-work-permanent.html Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 13, 2020 Share Posted October 13, 2020 On the Hunt for Office Space, Companies Stay Low to the Ground Groundscrapers have been considered less exalted than their soaring brethren, but their ability to house an entire company on a single floor has made them more desirable in the pandemic. https://www.nytimes.com/2020/10/13/business/groundscraper-landscraper-skyscraper.html Link to comment Share on other sites More sharing options...
thepupil Posted October 15, 2020 Share Posted October 15, 2020 https://apple.news/Ao4o1b-pmQMa7isBWMWSXpw Morningstar likes office...but thinks VNO is more Levered than SLG, loses all credibility. Link to comment Share on other sites More sharing options...
CorpRaider Posted October 16, 2020 Share Posted October 16, 2020 Haha. They are just citing the MRQ total debt to ebitda. They both have ~55% TL/TA. Lazy balance sheets. SLG is weird because it has like a mini merchant bank on the BS (should be levered like 5/1 LFG). They seem to be harping on the VNO retail exposure. The most troubling thing to me is that they are actually a fan company (did we already exhaust that joke <groan>)?. Link to comment Share on other sites More sharing options...
Gregmal Posted October 17, 2020 Share Posted October 17, 2020 Apparently not all types of office, city or not is struggling. Pretty incredible gain(all things considered) on a 4 year investment given the backdrop of everything else. ARE continues to look pretty damn good. https://therealdeal.com/2020/10/16/blackstone-bets-big-on-life-science-buildings-with-14-6b-deal/ Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 17, 2020 Share Posted October 17, 2020 Apparently not all types of office, city or not is struggling. Pretty incredible gain(all things considered) on a 4 year investment given the backdrop of everything else. ARE continues to look pretty damn good. https://therealdeal.com/2020/10/16/blackstone-bets-big-on-life-science-buildings-with-14-6b-deal/ Life science properties look good. Ventas sprinkled a cool billion of coin across the Bay from me. https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/ventas-to-buy-3-south-san-francisco-buildings-for-1b-60429754 The class A properties include the 721,000-square-foot Genesis Towers complex at One & Two Tower Place, and the 72,000-square foot four-story building at 4000 Shoreline Court. The buildings comprising a mix of office and laboratory space are being sold by Bain Capital Pvt. Equity LP and investment firm Phase 3 Real Estate Partners Inc., according to the report. Eastdil Secure represents the sellers. The Chicago-based healthcare real estate investment trust will receive a $415 million 10-year loan from Citigroup and JPMorgan for the transaction. Citigroup will reportedly provide 70% of the mortgage. Link to comment Share on other sites More sharing options...
thepupil Posted October 19, 2020 Share Posted October 19, 2020 Office REITs Cut at Evercore ISI With Workers Slow to Return By Felice Maranz (Bloomberg) -- The slow pace of workers returning to offices and high levels of new supply are “just too much” for the office REIT sector to deal with, Evercore ISI’s Steve Sakwa wrote in a note downgrading Boston Properties, Kilroy, Paramount and Vornado. Sakwa sees vacancy rates soaring to more 17% from 13.8% to by the end of 2021, as an additional 75m sf of space is delivered, while demand stays negative That means office stocks will stay under pressure, with investors likely to shun the sector until there’s a “clear path to occupancy recovering and pricing power stabilizing” Cut PTs by avg. 5%; lowered BXP, KRC, PGRE to in-line from outperform and VNO to underperform from in line Keeps top picks Alexandria, which is “focused on the life science sector where work from home is much less of a threat,” and Corporate Office, which focuses on U.S. government and defense contractors, who are generally not able to work from home BXP fell 0.5% in premarket trading on Monday NOTE: Earlier, Urban Office REITs Face Leasing Risks Amid Strong Collections: Bloomberg IntelligenceRelated tickers: Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 27, 2020 Share Posted October 27, 2020 Can't be positive for high cost and high tax cities and states... https://redditblog.com/2020/10/27/evolving-reddits-workforce/ What about employee compensation? To help drive the idea home (pun intended), we’ve reimagined our approach to compensation in the US. To support employees to live where they want to and do their best work, we are eliminating geographic compensation zones in the US. It means that our US compensation will be tied to pay ranges of high-cost areas such as SF and NY, regardless of where employees live. We believe this is the right balance of flexibility and support for employees, recognizing the varied tradeoffs people consider when deciding where to live. Internationally, we have had one pay range per country, and now the US will be consistent with this approach. Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 27, 2020 Share Posted October 27, 2020 In a Battered New York Office Market, Life Science Is Flourishing With state and city government support, developers are building laboratories for medical research and incubator spaces for biotech start-ups amid the race for a coronavirus vaccine. https://www.nytimes.com/2020/10/27/business/life-science-new-york-coronavirus.html Link to comment Share on other sites More sharing options...
fareastwarriors Posted November 17, 2020 Share Posted November 17, 2020 looks like the gate foundation bought a million shares of Boston Properties. in addition, TCI Fund/ Chris Hohn added 3.6 million shares. https://www.dataroma.com/m/holdings.php?m=GFT https://www.dataroma.com/m/m_activity.php?m=tci&typ=a Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 3, 2021 Share Posted February 3, 2021 Office Glut Comes to Texas With Oil Bust Leaving Towers Empty Houston’s vacancy rate leads the U.S.; CMBS delinquencies rise Post-pandemic leasing will be test of how space is used https://www.bloomberg.com/news/articles/2021-02-03/office-glut-comes-to-texas-with-oil-bust-leaving-towers-empty?srnd=premium Link to comment Share on other sites More sharing options...
Gregmal Posted April 4, 2021 Share Posted April 4, 2021 https://seekingalpha.com/news/3678908-office-reit-stocks-lag-broader-market-gains-as-office-occupancy-stays-low Is retail vs office still a debate? Dont get me wrong, premier trophy properties are still gold, especially in the era of Project Zimbabwe. But as an asset class or lets say for instance, if you are the owner of a large pool of these...its hard to imagine meaningful improvement over the short to mid term. With tax increases looming, companies have further incentive to squeeze savings. How does it play out? If you have a current lease everyone will at some point head back to the cubicles and corner offices. But there's definitely going to be serious discussions when renewal comes up; at least much more so than there was in 2019. The occupancy rates as it stands arent great, but are also misleading because of supply coming to market and additionally the nature of an office leases(IE long term, so really the only people who's shift has been reflected are folks who's leases expired in 2020 or 2021). Is there a catalyst or angle to be a hardcore office bull right now other than relative value? I am by no means in the short camp, for the simple reason that March 2020+ threw things so out of whack that you could buy things with terrible issues and still make money, but as things in RE-world continue normalizing, eventually the fundamental issues will become the valuation driver. So when "not all going BK" gets crossed of the list of catalysts, and it shifts more over to "expanding sq/ft and occupancy"...whats this going to look like? Link to comment Share on other sites More sharing options...
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