Office is back – you can google it! – Commercial observer



Nobody says there hasn’t been a billion-dollar blockbuster real estate transaction in the past year. (**Cough** Black stone! ** Cough, cough. **) But since March 2020, the New York office stock unfortunately seemed to be taken out of the mix.

Yes sir, A Vanderbilt signed incredible leases. But a lease (even an amazing, record-breaking one) is a different beast than a sale. Manhattan was once littered with seemingly effortless, multi-billion dollar office space. It was the safest, most prudent investment that could be made. There was just so much Manhattan. It was the real estate equivalent of the catechism.

Last week, Google proved it was still possible.

Google has exercised its option to purchase the St. John’s Terminal in Hudson Square for $ 2.1 billion.

This wasn’t exactly a surprise to those who followed Google real estate removals in Manhattan. They’ve been building the area a long time and have the money to make a big property purchase without even feeling it.

“Google is very conscious of its real estate decisions and I think they were very committed to the building,” said Dean Shapiro, head of US development at Oxford, who developed the project shortly after Google’s chief financial officer signed the St. John’s deal . “You worked very closely with us; they bought into the design; it will get right to the point with what they are trying to do in relation to the workplace. Therefore, it does not surprise us that they have decided to include this as an integral part of their real estate portfolio. “

In order not to outperform, a joint venture between Hines and the National Pension Service of Korea is behind the $ 2.5 billion Acquisition and redevelopment of the Pacific Gas and Electric Company campus in San Francisco. The purchase of PG&E totaled $ 800 million, but the JV is also investing an additional $ 1.7 billion in a completely new development that will include two offices and an apartment building.

Perhaps both deals are driven by the idea that the office just has to get into a long drudgery. But the precautions, the rules and everything else will be to be normalized at some point.

The light from these two mega-deals shouldn’t dim the brightness of other non-billion dollar offices. Mack-Cali sold 101 Hudson Street in Jersey City to The Birch Group for a whopping $ 380 million, nothing to sneeze at.

And there is a lot to do in the world of apartment buildings. Despite resistance, the Champlain Towers South site in Surfside, Florida, will come on the market and likely to be sold next spring with a starting price of $ 120 million. Delshah Capital smells like money in Downtown Brooklyn and bring its mixed-use multi-family system to market. And in Long Island City the Vorea Group, domain company and L + M development partner closed due to a $ 88 million package.

There was also movement in retail: in the capital WashREIT has sold eight retail properties for $ 168 million. (The buyer was not disclosed.)

No knocking on leases

Leasing was pretty good last week!

Liakas Law took up 13,445 square feet on 40 Wall Street by the Trump Organization. (And we heard the former President could be Trump need legal representationso that it could work for everyone!)

There were other interesting office rents: Nord / LB, Deutsche Bank, signed a 15 year lease for 17,282 square feet in the Grace building; Apifiny, the cryptocurrency exchange, took 12,022 square feet at Rudins 1675 Broadway; In the Mocean Group, the swimwear manufacturer, took 11,000 square feet at 463 Seventh Avenue; and textile company Nassimi relocates its headquarters from 7 Penn Plaza to 550 Seventh Avenue.

We learned that in retail Apple has opened its first store in the Bronx The launch of the iPhone 13 was announced in the Mall at Bay Plaza on the same day. And Newmark reported six new fitness leases. (We’re excited for the activity. Honestly, a lot of retailers these days are between a rock and a tough place. With vaccine regulations in place, they are responsible for patrols for fakes and it was tough, especially for restaurateurs.)

In Washington, DC, REEF Technology, a Miami-based company providing ghost kitchens logistics and warehouse support, Looted 63,749 square meters of industrial space at the Gorman Center in Savage Mill.

Speaking of Miami, Snowden Lane Partners, a finance company, doubles its footprint in the Columbus Center.

Other interesting purchases

Avison Young was in a buying mood – she bought Singer & Bassuk, the respected Manhattan-based boutique financial intermediary. SBO’s father-son founders Andy and Scott Singer have been named directors and co-leads of Avison Young’s Tri-State Debt and Equity Group.

Procore, the construction management company, has committed $ 500 million Buy a level set, a proptech company that makes software that facilitates the process of lien filing on construction projects.

And the average Joe investor will have the chance to buy those elusive WeWork stocks as early as next month. BowX Acquisition Corp., a special-purpose acquisition company, has filed a proxy statement with the coworking company to get it public in a $ 9 billion deal slated for October.

For us, we’re just waiting to see what happens when WeWork competitor Industrious goes public. (Sometime next year, according to CEO Jamie Hodari Interview with CO.)

Into life, in life, in the life sciences!

Did you know it was there $ 70 billion in life sciences investments Company in 2020? That comes from a new report from Cushman & Wakefield and is one of the reasons why life sciences is one of the more interesting sectors in real estate today.

San Diego has long been a center of genomic research and 18 million square feet and counting, has long been allied with San Francisco for life sciences demand and investment.

the East coast is not lazy, either! The Amtrak Corridor acts as a huge biotech hub with the best universities in the world like Harvard, MIT, and Yale making great minds to make Boston and New Haven serious life science players, and New Jersey, the pharmaceutical brands how Bristol Myers hosts Squibb.

New York has long provided the capital to make everything work; the capital and many life sciences supports like BioLabs @ NYULangone, a biotech coworking facility that serves as an incubator for life sciences startups. CO talked to him Director, Dr. Glennis Mehra, in this week.

All of this is a very awkward way of saying that we think there is a lot of activity in the life sciences. For this reason we have created a monthly newsletter that we would like to encourage everyone to read sign up for.

We meet next week!


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