Deconstruct

Times Square is already full of tourists, billboard glitz and Broadway shows. SL Green, New York's largest landlord, is now bidding to build a casino in the entertainment hub. The firm has placed a bid with the city to take up one of three casino licenses up for grab in Downstate New York. The Real Deal's Deconstruct chats with SL Green executive Brett Herschenfeld about why the firm chose Times Square and why it has teamed up with Caesars on its plans.

Further reading: https://therealdeal.com/2022/12/05/going-for-the-jackpot-a-look-at-the-high-rollers-competing-to-build-nyc-casinos/

Credits: New York Governor Kathy Hochul's State of the State 2023 address

On Tuesday, Jan. 10, Gov. Kathy Hochul delivers her State of the State address for 2023. Deconstruct has the scoop on where the governor's priorities lie when it comes to New York real estate. Hint: Affordable housing is a huge one.

It's the end of the year as we know it, and investors feel — uncertain. Rate hikes have slowed deals in the second half of 2022 and Fed Chair Jay Powell said there's more pain to come. But how long will all the available dry powder stagnate on the sidelines? Deconstruct breaks down 2023 forecasts for multifamily, retail, industrial and office and chats with Moody's Senior Economist Thomas LaSalvia about when the deal dam might break.

High rates and uncertain times have seen traditional CRE transactions falter in recent months. But for deal-hungry investors, Harrison Street CEO Christopher Merrill says there's an alternative — alternative assets. The executive makes the case that once-fringe investment vehicles like student housing or self-storage hold the recession-proof demand and repricing power investors are craving.

After low interest rates propelled investment sales to a record-breaking year in 2021, commercial brokerages including CBRE, Newmark and JLL, are now feeling the brunt of the impact. They're pushing to cut costs, some have laid off employees, but all agree the macroeconomic environment has made it hard to do business. Deconstruct chats with TRD reporter Patrick Ralph about the reasons behind the brokerages’ pain and whether the firms will see relief in the future.

As commercial real estate deals have sputtered under the pressure of a rising rate environment, one asset has proved a safe bet: grocery-anchored retail. Sales of shopping centers with a supermarket soared during the pandemic and should hold steady as other trades falter.

With rising interest rates, major institutions have cut back on lending. Issuances of commercial mortgage-backed securities dropped 35 percent in the third quarter, compared to the second. Deconstruct chats with Madison Realty Capital's Josh Zegen about what opportunities are still out there — coming from distress, loans on loans and creative refinancings.

Credit: NBCLA

Compass CEO Robert Reffkin had a busy Nov. 10. Hours after speaking at a TRD forum in Miami, Reffkin got on a conference call with analysts to discuss the company's much anticipated earnings results for the third quarter. Compass lost $157 million from July through September — more than it lost in the second quarter. Deconstruct looks at the state of the brokerage, why it's struggling and where it goes from here.

Guests: TRD reporter Harrison Connery, TRD deputy web editor and South Florida reporter Katherine Kallergis.

Industry experts agree: Converting unused office towers to residential buildings is great in theory, but a moonshot to pull off. Despite the grab bag of obstacles that make these projects so difficult, the developer and office landlord Hines is getting in on the action. The Real Deal breaks down how Hines' Salt Lake City project pencils out and what it signals about the right building for the job.

Guests: Steven Paynter, studio director at Gensler's Toronto office; Dusty Harris, senior managing director of Hines' Utah and Oregon investment activity.

After the city of Santa Monica failed to submit a state-approved housing plan on time, developers raced to capitalize on the city's failures. Under California state law, developers in cities whose housing plans fall out of state compliance can turn to filing so-called “builder’s remedy” projects that do not require the usual consent of municipal councils or planning commissions.

But how did this happen? TRD's Deconstruct chats with reporter Trevor Bach about why the city of Santa Monica is set to get more than 5,000 new units, whether cities can challenge these projects and how other regions may get a deluge of new housing.