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{
"id": "881852191",
"title": "Ep. 10 RENTV's Weekly CRE News & Views with Steve Bloom; 08-25-2020",
"url": "https://soundcloud.com/rentvnews/ep-10-rentvs-weekly-cre-news-views-with-steve-bloom-08-25-2020",
"duration": 3087,
"segments": [
{
"start": 8.78,
"end": 13.42,
"text": "Hello and welcome to episode number 10 of Rent TV's Commercial Real Estate News and"
},
{
"start": 13.42,
"end": 18.42,
"text": "Views podcast with Steve Blum on August 24, 2020."
},
{
"start": 18.42,
"end": 24.2,
"text": "I'm Steve Blum, your host and founder and CEO of RentTV.com, our news and media company"
},
{
"start": 24.2,
"end": 29.78,
"text": "for the commercial real estate industry, now in our 21st year providing daily news stories,"
},
{
"start": 29.78,
"end": 35.9,
"text": "market reports, and more for the commercial real estate industry on our website, RentTV.com,"
},
{
"start": 35.9,
"end": 40.66,
"text": "and our email newsletter, The Real Estate Insider, goes to over 60,000 commercial real"
},
{
"start": 40.66,
"end": 43.58,
"text": "estate professionals three times each week."
},
{
"start": 43.58,
"end": 47.88,
"text": "We were also putting on conferences before the pandemic hit, and we have produced our"
},
{
"start": 47.88,
"end": 52.86,
"text": "share of videos over the years while also broadcasting videos from other commercial real estate"
},
{
"start": 52.86,
"end": 56.38,
"text": "companies on our website, RentTV.com."
},
{
"start": 56.38,
"end": 60.38,
"text": "And thank you for tuning into our new episode of our weekly podcast, Rent TV's Commercial"
},
{
"start": 60.38,
"end": 65.52,
"text": "Real Estate News and Views, a brand new news program for our incredibly dynamic and ever"
},
{
"start": 65.52,
"end": 67.32,
"text": "changing industry."
},
{
"start": 67.32,
"end": 71.76,
"text": "In the show streaming to you from the heart of Silicon Beach and Marina Del Rey, I will"
},
{
"start": 71.76,
"end": 76.88,
"text": "give you a review of national industry reports and trends, a discussion of real estate issues"
},
{
"start": 76.88,
"end": 82.08,
"text": "such as local and national legislation, followed by a review of major deal and development"
},
{
"start": 82.08,
"end": 86.8,
"text": "news from around the US, and in some shows we will have our tech drive segment where"
},
{
"start": 86.8,
"end": 91.28,
"text": "I tell you about tech news, services, and websites, and then I will discuss recent and"
},
{
"start": 91.28,
"end": 97.12,
"text": "upcoming podcasts, webinars, events, and recordings of interest to the commercial real estate industry"
},
{
"start": 97.12,
"end": 99.04,
"text": "in our power segment."
},
{
"start": 99.04,
"end": 103.68,
"text": "Hopefully you will like what you hear, it is my goal to make these shows a profitable"
},
{
"start": 103.68,
"end": 105.52,
"text": "use of your time."
},
{
"start": 105.52,
"end": 109.68,
"text": "And I am confident we will accomplish that today as we have put together a show packed"
},
{
"start": 109.68,
"end": 113.78,
"text": "full of industry information that we think could help you in your business."
},
{
"start": 113.78,
"end": 118.0,
"text": "But before I start with the industry-wide markets reports segment, I want to give a huge"
},
{
"start": 118.0,
"end": 123.84,
"text": "thanks to our very first podcast sponsors, Capitol Rivers Commercial and Redwood Mortgage,"
},
{
"start": 123.84,
"end": 126.48,
"text": "who I will tell you about more later in the show."
},
{
"start": 126.48,
"end": 130.48,
"text": "I also again want to thank all of those who sent the very positive feedback about our"
},
{
"start": 130.48,
"end": 135.92,
"text": "new podcast and to those who sent constructive comments, which I do listen to as we try"
},
{
"start": 135.92,
"end": 141.44,
"text": "to craft this podcast to best serve our audience of very busy real estate professionals."
},
{
"start": 141.44,
"end": 146.88,
"text": "And in response to some of those, I will try to shorten these shows by alternating"
},
{
"start": 146.88,
"end": 152.16,
"text": "the tech drive segment and our legislative issue segment from different shows."
},
{
"start": 152.16,
"end": 156.0,
"text": "So I'll alternate one week we'll do the tech drive, one week we'll do the legislative"
},
{
"start": 156.0,
"end": 161.04,
"text": "issues and hopefully we'll cut the show length down a little bit."
},
{
"start": 161.04,
"end": 165.2,
"text": "So let's get into this next show, which I start with the economic and commercial real"
},
{
"start": 165.2,
"end": 167.72,
"text": "estate industry reports segment."
},
{
"start": 167.72,
"end": 171.32,
"text": "And I will note I'm taping this show against the backdrop of national news, which includes"
},
{
"start": 171.32,
"end": 176.84,
"text": "the DNC convention this past week and the Republicans starting theirs tomorrow, yet still"
},
{
"start": 176.84,
"end": 180.88,
"text": "no deal from Congress on a stimulus bill, which would include some continuance of"
},
{
"start": 180.88,
"end": 185.84,
"text": "unemployment payments to replace the $600 per week people were getting as well as some"
},
{
"start": 185.84,
"end": 187.32,
"text": "eviction protection."
},
{
"start": 187.32,
"end": 192.56,
"text": "So as of now, all we have at the national level for real estate assistance is the president's"
},
{
"start": 192.56,
"end": 197.96,
"text": "executive order providing $400 per week, but a hundred would come from the states."
},
{
"start": 197.96,
"end": 201.12,
"text": "And so far only Arizona started sending those out."
},
{
"start": 201.12,
"end": 204.88,
"text": "Of course, many real estate owners, especially in the multifamily sector focused on this"
},
{
"start": 204.88,
"end": 205.88,
"text": "issue."
},
{
"start": 205.88,
"end": 209.92,
"text": "But even more importantly, perhaps long term is that there's no discussion about how to"
},
{
"start": 209.92,
"end": 214.92,
"text": "deal with the issues arising between borrowers and lenders, especially in the CMBS arena,"
},
{
"start": 214.92,
"end": 220.08,
"text": "which could have more destructive consequences for the economy if not dealt with."
},
{
"start": 220.08,
"end": 223.88,
"text": "But there are bright spots in the economy, all things considered, such as the fact that"
},
{
"start": 223.88,
"end": 228.44,
"text": "weekly unemployment claims dropped below 1 million for the first time since March."
},
{
"start": 228.44,
"end": 232.72,
"text": "In addition, in recent economic reports I get from Wells Fargo economics, they conclude"
},
{
"start": 232.72,
"end": 238.54,
"text": "that most likely the hits experienced in employment in the lower spectrum of income on its own"
},
{
"start": 238.54,
"end": 244.12,
"text": "should not spill upward too badly to the higher earning spectrum of employment, thereby limiting"
},
{
"start": 244.12,
"end": 248.8,
"text": "the length and duration of the downturn and getting those lower level earners back to"
},
{
"start": 248.8,
"end": 250.02,
"text": "work sooner."
},
{
"start": 250.02,
"end": 254.04,
"text": "Of course, this assumes at some point in the foreseeable future that fears of the"
},
{
"start": 254.04,
"end": 259.34,
"text": "pandemic will ease and people will feel more comfortable patronizing restaurants, bars, theaters"
},
{
"start": 259.34,
"end": 260.84,
"text": "and offices again."
},
{
"start": 260.84,
"end": 266.32,
"text": "Now for retail sales, Wells Fargo noted that underlying components actually did much better"
},
{
"start": 266.32,
"end": 271.48,
"text": "than expected, which came out on the heels of an upward revision that lifted June's"
},
{
"start": 271.48,
"end": 273.96,
"text": "gain in this category to 6%."
},
{
"start": 273.96,
"end": 279.4,
"text": "And Wells Fargo's retail sales report offers the latest evidence of a V-shaped recovery"
},
{
"start": 279.4,
"end": 281.08,
"text": "in consumer goods spending."
},
{
"start": 281.08,
"end": 286.2,
"text": "However, they say to keep in mind that for the overall economy, outlays on services are"
},
{
"start": 286.2,
"end": 292.92,
"text": "roughly twice as large as for goods and the recovery in the services sector has been slower."
},
{
"start": 292.92,
"end": 297.44,
"text": "Now to information specific to the commercial real estate industry and of course everyone"
},
{
"start": 297.44,
"end": 300.72,
"text": "is trying to read the tea leaves to figure out what's happening in the various sector"
},
{
"start": 300.72,
"end": 304.36,
"text": "markets and what the dynamics will be going forward."
},
{
"start": 304.36,
"end": 308.72,
"text": "And to shed light on the different main sectors, I will refer to several recent reports I"
},
{
"start": 308.72,
"end": 312.84,
"text": "received this week as well as some articles from the past week that I'm looking at"
},
{
"start": 312.84,
"end": 318.16,
"text": "on my desk, starting with one we highlighted on our website, renttv.com, from Transwestern"
},
{
"start": 318.16,
"end": 323.12,
"text": "and Devincore, which in their mid-year market sentiment survey, they tallied responses from"
},
{
"start": 323.12,
"end": 327.9,
"text": "brokers across 43 North American markets on conditions in the office, medical office"
},
{
"start": 327.9,
"end": 329.56,
"text": "and industrial sectors."
},
{
"start": 329.56,
"end": 334.4,
"text": "They found that after a strong start in 2020, which we knew, the impacts of COVID on the"
},
{
"start": 334.4,
"end": 339.76,
"text": "commercial real estate industry became evident during the second quarter as the US office"
},
{
"start": 339.76,
"end": 347.88,
"text": "index averaged a very low 61.8 for the second half of 2020, signaling very weak market conditions"
},
{
"start": 347.88,
"end": 355.68,
"text": "falling well below the 100 neutral zone figure and the 106.9 registered a year in 2019 prior"
},
{
"start": 355.68,
"end": 358.0,
"text": "to the whole onset of the pandemic."
},
{
"start": 358.0,
"end": 361.5,
"text": "Of course, we all know that the sector is threatened from work from home strategies"
},
{
"start": 361.5,
"end": 367.24,
"text": "that work better than expected and offer cost saving alternatives to many tenants, increasing"
},
{
"start": 367.24,
"end": 369.96,
"text": "the possibility of space reductions in the future."
},
{
"start": 369.96,
"end": 375.12,
"text": "Now in the second quarter, 2020 net absorption registered negative 14.2 million square feet."
},
{
"start": 375.12,
"end": 380.92,
"text": "The first quarter and occupancy loss was recorded since the first three months of 2010 as most"
},
{
"start": 380.92,
"end": 386.36,
"text": "tenants paused decisions and that pushed the national office vacancy rate up 20 basis"
},
{
"start": 386.36,
"end": 389.44,
"text": "points to 10.1%."
},
{
"start": 389.44,
"end": 393.56,
"text": "Construction activity also slowed and ground breakings are expected to be limited over"
},
{
"start": 393.56,
"end": 399.2,
"text": "the next 12 months due to elevated unemployment and continued uncertainty about the future"
},
{
"start": 399.2,
"end": 400.76,
"text": "use of office space."
},
{
"start": 400.76,
"end": 405.46,
"text": "Now, sticking with the office sector, another report I got here by Moody's that we caught"
},
{
"start": 405.46,
"end": 410.22,
"text": "off a Globe Street article by Robert Sterace notes the world is figuring out how the new"
},
{
"start": 410.22,
"end": 414.72,
"text": "reality will play out in the office property sector, which already had been experiencing"
},
{
"start": 414.72,
"end": 420.0,
"text": "downward pressure on the usage intensity of office space even before COVID-19."
},
{
"start": 420.0,
"end": 424.0,
"text": "But now the shift towards individuals working remote because of the pandemic is expected"
},
{
"start": 424.0,
"end": 428.5,
"text": "to hit the office property sector, particularly hard in the coming years."
},
{
"start": 428.5,
"end": 435.22,
"text": "The Moody's report says effective rents will fall 10.4% nationally this year and as much"
},
{
"start": 435.22,
"end": 439.8,
"text": "as 21% in New York and other large markets."
},
{
"start": 439.8,
"end": 444.46,
"text": "Victor Collinog, head of commercial real estate economics at Moody's said many companies"
},
{
"start": 444.46,
"end": 448.96,
"text": "continue to push back returning to the office with some already planning to telecommute"
},
{
"start": 448.96,
"end": 450.82,
"text": "into 2021."
},
{
"start": 450.82,
"end": 454.58,
"text": "Whether the increased availability of remote working infrastructure will have long term"
},
{
"start": 454.58,
"end": 457.28,
"text": "effects on office demand remains to be seen."
},
{
"start": 457.28,
"end": 462.72,
"text": "However, the long term nature of office leases means that it may take some time for vacancy"
},
{
"start": 462.72,
"end": 465.68,
"text": "rates to reflect the real trend."
},
{
"start": 465.68,
"end": 473.24,
"text": "They forecast that US often see vacancy rate is expected to hit an historic high of 19.9%"
},
{
"start": 473.24,
"end": 480.7,
"text": "last year, surpassing the previous record high of 19.7% in 1991 and that is projected"
},
{
"start": 480.7,
"end": 484.12,
"text": "to hit 20% in 2022."
},
{
"start": 484.12,
"end": 488.52,
"text": "Moody's forecast for commercial real estate rents and vacancies we should know covers eight"
},
{
"start": 488.52,
"end": 493.88,
"text": "property types and more than 3,000 sub markets across the country."
},
{
"start": 493.88,
"end": 499.12,
"text": "I would say the office markets and I suppose multifamily markets too, which are the canaries"
},
{
"start": 499.12,
"end": 504.16,
"text": "in the coal mine for what may be coming are New York City and San Francisco with their"
},
{
"start": 504.16,
"end": 509.0,
"text": "high rental rates and myriad of underlying quality of life and tax issues."
},
{
"start": 509.0,
"end": 513.56,
"text": "And Laura Waxman in an article for the San Francisco Business Times reported that these"
},
{
"start": 513.56,
"end": 518.68,
"text": "issues are coming to a head with the reversal of fortunes in San Francisco's office market"
},
{
"start": 518.68,
"end": 523.4,
"text": "in the wake of years of skyrocketing growth and that this is creating a new dynamic"
},
{
"start": 523.4,
"end": 525.74,
"text": "for the city's real estate industry."
},
{
"start": 525.74,
"end": 531.22,
"text": "The office vacancy rate registered the fastest quarter over quarter increase among large"
},
{
"start": 531.22,
"end": 539.94,
"text": "downtowns nationwide, nearly doubling from 3.7% at year end 2019 to 6.6% in the second"
},
{
"start": 539.94,
"end": 543.34,
"text": "quarter this year, according to data from CBRE."
},
{
"start": 543.34,
"end": 548.42,
"text": "The economic pause induced by the pandemic impacted many occupancy decisions, resulting"
},
{
"start": 548.42,
"end": 553.54,
"text": "in what the firm says will be a tenant favorable market during the remainder of the year."
},
{
"start": 553.54,
"end": 557.82,
"text": "Now asking rents for space in downtown San Francisco that hit the market this month are"
},
{
"start": 557.82,
"end": 559.34,
"text": "dipping the new lows."
},
{
"start": 559.34,
"end": 564.5,
"text": "She notes a report by brokerage firm Newmark Night Frank that 87 net new sub leases have"
},
{
"start": 564.5,
"end": 569.82,
"text": "become available since March 1st, totaling 2.5 million square feet in the city's total"
},
{
"start": 569.82,
"end": 575.54,
"text": "sublease inventory is now about 6.5 million square feet, overwhelmingly comprised of"
},
{
"start": 575.54,
"end": 580.64,
"text": "tech spaces, new direct spaces over 10,000 square feet that have hit the market since"
},
{
"start": 580.64,
"end": 586.88,
"text": "July 20th, total almost 200,000 square feet and overall rents for direct office leases"
},
{
"start": 586.88,
"end": 593.08,
"text": "in the city have dropped by 4.9% to an average of $84 per square foot in the second quarter"
},
{
"start": 593.08,
"end": 597.28,
"text": "with more significant drops being felt in non-premium spaces."
},
{
"start": 597.28,
"end": 602.76,
"text": "Ms. Waxman provides several examples of new listings of B class space with asking rents"
},
{
"start": 602.76,
"end": 607.48,
"text": "in the 40 and 50s, numbers not seen in a long time in the city."
},
{
"start": 607.48,
"end": 611.32,
"text": "She notes from her discussions with brokers that it's still too early to say what the"
},
{
"start": 611.32,
"end": 617.2,
"text": "market re-pricing may be, and also that high rise premium tier one space may not see much"
},
{
"start": 617.2,
"end": 622.68,
"text": "of a price correction, noting that some trophy leases are still transacting at $100 a square"
},
{
"start": 622.68,
"end": 628.64,
"text": "foot, though with rent concessions such as free initial rent or high TIs, resulting average"
},
{
"start": 628.64,
"end": 633.08,
"text": "asking rents are landing still at a lofty $96 per square foot."
},
{
"start": 633.08,
"end": 638.2,
"text": "However, there is a lot of room to negotiate, so the real rents are probably going to be"
},
{
"start": 638.2,
"end": 640.0,
"text": "lower than that."
},
{
"start": 640.0,
"end": 645.4,
"text": "It should also be no surprise that brokers told her that there are so few deals actually"
},
{
"start": 645.4,
"end": 649.96,
"text": "happening that they are still trying to figure out where the actual pricing should be going"
},
{
"start": 649.96,
"end": 651.52,
"text": "forward."
},
{
"start": 651.52,
"end": 656.88,
"text": "Now expressing a more optimistic albeit contrarian view about the office sector is CBRE global"
},
{
"start": 656.88,
"end": 662.4,
"text": "chief economist Richard Barkham, who in a piece on Globe Street said he sees favorable"
},
{
"start": 662.4,
"end": 667.56,
"text": "signs for the office sector and the wider economy and that the trend towards remote"
},
{
"start": 667.56,
"end": 672.0,
"text": "work may be partially offset by decreased densification in offices."
},
{
"start": 672.0,
"end": 675.56,
"text": "He says he's optimistic about the long run outlook for the office sector in spite of"
},
{
"start": 675.56,
"end": 681.6,
"text": "businesses rapid adoption of technology that facilitates remote meetings and while the"
},
{
"start": 681.6,
"end": 685.96,
"text": "near term prospects for the asset class are dim, he's confident that demand will"
},
{
"start": 685.96,
"end": 690.56,
"text": "bounce back since it's where people meet, it's where creativity happens, where clients"
},
{
"start": 690.56,
"end": 695.28,
"text": "get helped and where we train and bring in younger people into the workforce and all"
},
{
"start": 695.28,
"end": 698.84,
"text": "those things are going to need to reestablish themselves."
},
{
"start": 698.84,
"end": 703.32,
"text": "However, Barkham does acknowledge that the flight away from full time office work for"
},
{
"start": 703.32,
"end": 708.56,
"text": "many is likely to be permanent while 63% of office employees travel to their workplace"
},
{
"start": 708.56,
"end": 711.64,
"text": "all the time before the virus."
},
{
"start": 711.64,
"end": 716.6,
"text": "Scientists now pin that number at between 20 and 25% by 2030."
},
{
"start": 716.6,
"end": 720.56,
"text": "We've had the wind behind us over the last 20 or 30 years, which is continual growth"
},
{
"start": 720.56,
"end": 725.36,
"text": "in the office sector, but Barkham said there is reason to hope that a readjustment in how"
},
{
"start": 725.36,
"end": 730.4,
"text": "space gets used could offset this trend towards reducing space as concerns about exposure"
},
{
"start": 730.4,
"end": 735.08,
"text": "to future pandemics result in the allocation of greater space to each employee."
},
{
"start": 735.08,
"end": 740.44,
"text": "Shifting sectors, Barkham noted that the outlook for data centers and logistic facilities"
},
{
"start": 740.44,
"end": 745.44,
"text": "is particularly robust at the moment and the coronavirus forcing more digital commerce"
},
{
"start": 745.44,
"end": 750.48,
"text": "going through our industrial and logistic sectors, which is very hot at the moment and"
},
{
"start": 750.48,
"end": 752.8,
"text": "looks likely to continue."
},
{
"start": 752.8,
"end": 756.88,
"text": "Looking at the big picture, Barkham believes that in spite of the US's struggles in responding"
},
{
"start": 756.88,
"end": 761.96,
"text": "to the coronavirus crisis, he is confident a generally available vaccine will be coming"
},
{
"start": 761.96,
"end": 767.84,
"text": "and so he thinks the outlook for 2021 is much better than people expect."
},
{
"start": 767.84,
"end": 769.32,
"text": "Let's hope so."
},
{
"start": 769.32,
"end": 774.88,
"text": "Now taking a closer look at the industrial sector, I will go back to that Transwestern"
},
{
"start": 774.88,
"end": 782.98,
"text": "Devon Corps mid-year report where the US industrial average 104.4 for the second half 2020 slightly"
},
{
"start": 782.98,
"end": 786.56,
"text": "above 100, which is considered flat conditions."
},
{
"start": 786.56,
"end": 793.04,
"text": "This is only slightly below the 116.2 registered at year end 2019 prior to the onset of the"
},
{
"start": 793.04,
"end": 794.04,
"text": "pandemic."
},
{
"start": 794.04,
"end": 798.2,
"text": "Now, according to the most recent US industrial market report, the industrial sector fared"
},
{
"start": 798.2,
"end": 801.2,
"text": "much better since the onset of the pandemic."
},
{
"start": 801.2,
"end": 806.28,
"text": "In the second quarter, the streak of occupancy gains continued into its 42nd quarter despite"
},
{
"start": 806.28,
"end": 811.68,
"text": "posting the lowest level in 10 years as industrial leasing activity recovered swiftly in May and"
},
{
"start": 811.68,
"end": 814.92,
"text": "June after dipping earlier in the year."
},
{
"start": 814.92,
"end": 820.56,
"text": "Rent growth also continued for the 34th straight quarter, increasing 39% during that period."
},
{
"start": 820.56,
"end": 825.64,
"text": "E-commerce, which accelerated during the pandemic, is primarily responsible, as we all know,"
},
{
"start": 825.64,
"end": 831.4,
"text": "for the strength of the industrial sector with online grocery purchases due to the economic"
},
{
"start": 831.4,
"end": 836.68,
"text": "shutdown, further fueling growth and manufacturing also contributing."
},
{
"start": 836.68,
"end": 842.24,
"text": "While the vacancy rate for industrial is slightly higher in the second quarter to 5.4%, Matt"
},
{
"start": 842.24,
"end": 847.08,
"text": "Dolly, director of research at Transwestern, noted that this was mainly due to new product"
},
{
"start": 847.08,
"end": 853.24,
"text": "deliveries and some subly space, but the industrial property sector will continue to"
},
{
"start": 853.24,
"end": 855.24,
"text": "flourish."
},
{
"start": 855.24,
"end": 859.76,
"text": "Following this evidence about industrial real estate, a report by Real Capital Analytics"
},
{
"start": 859.76,
"end": 866.36,
"text": "analyzed by Globe Street's Karen Sloan noted that many of us know as intuitively obvious,"
},
{
"start": 866.36,
"end": 870.72,
"text": "which is that online retail demand helped prop up second quarter industrial real estate"
},
{
"start": 870.72,
"end": 871.72,
"text": "sales."
},
{
"start": 871.72,
"end": 875.96,
"text": "Although industrial real estate sales were down naturally in the second quarter 2020,"
},
{
"start": 875.96,
"end": 880.2,
"text": "that decline was smaller than those experienced by other real estate sectors."
},
{
"start": 880.2,
"end": 884.54,
"text": "Demand for distribution warehouses were the pillar of industrial real estate deals, which"
},
{
"start": 884.54,
"end": 890.1,
"text": "totaled $11.1 billion in the second quarter, with a third of that deal volume comprised"
},
{
"start": 890.1,
"end": 896.02,
"text": "of distribution warehouses, a key part of online retail, which has flourished amid the"
},
{
"start": 896.02,
"end": 898.28,
"text": "COVID-19 pandemic."
},
{
"start": 898.28,
"end": 901.94,
"text": "The report offered a sampling of distribution warehouse sales in which either Amazon or"
},
{
"start": 901.94,
"end": 908.86,
"text": "FedEx or the Sultenants, the largest was the June $176 million sale at $150 per square"
},
{
"start": 908.86,
"end": 915.1,
"text": "foot of Wisconsin's Kenosha Enterprise Park, $1.5 million square foot distribution center"
},
{
"start": 915.1,
"end": 920.34,
"text": "rented by Amazon, which was bought by KKR Real Estate, which was also the buyer of"
},
{
"start": 920.34,
"end": 926.06,
"text": "another Amazon deal in June, paying $84 million to Morgan Stanley for a $1 million square"
},
{
"start": 926.06,
"end": 928.9,
"text": "foot distribution center in North Carolina."
},
{
"start": 928.9,
"end": 932.9,
"text": "Other distribution warehouses leased by Amazon that were sold in the second quarter include"
},
{
"start": 932.9,
"end": 939.22,
"text": "ones in Shakopee, Minnesota for nearly $119 million, North Las Vegas for $110 million,"
},
{
"start": 939.22,
"end": 942.36,
"text": "and Ocola, Florida for $58 million."
},
{
"start": 942.36,
"end": 946.7,
"text": "The FedEx properties it sold were smaller than the Amazon ones, which is more typical"
},
{
"start": 946.7,
"end": 951.48,
"text": "with smaller industrial properties, commanded higher price per square foot, but all three"
},
{
"start": 951.48,
"end": 956.94,
"text": "warehouse deals reported with FedEx as a tenant sold for more than $170 per square"
},
{
"start": 956.94,
"end": 962.98,
"text": "foot, compared to the second quarter average of $97 per square foot for typical single tenant"
},
{
"start": 962.98,
"end": 964.58,
"text": "warehouses in the US."
},
{
"start": 964.58,
"end": 969.46,
"text": "It noted a 270,000 square foot warehouse in Whitsitt, North Carolina, selling for nearly"
},
{
"start": 969.46,
"end": 975.22,
"text": "$48 million, or more than $176 per square foot, and an Ogden, Utah FedEx distribution"
},
{
"start": 975.22,
"end": 981.38,
"text": "center with the highest per square foot price at $185."
},
{
"start": 981.38,
"end": 986.1,
"text": "Shifting to retail, nothing in the news lately really points to anything but challenges and"
},
{
"start": 986.1,
"end": 988.58,
"text": "tremendous change coming for the sector."
},
{
"start": 988.58,
"end": 993.02,
"text": "And I will refer back to that Moody's analytics report that concluded retail property growth"
},
{
"start": 993.02,
"end": 997.98,
"text": "will fare worse than office, industrial, or multifamily properties, noting that effective"
},
{
"start": 997.98,
"end": 1003.54,
"text": "rents for retail properties are expected to drop by 11.1% this year, given the wide"
},
{
"start": 1003.54,
"end": 1008.22,
"text": "scale store closures and the rising threat to the sector posed by e-commerce."
},
{
"start": 1008.22,
"end": 1013.24,
"text": "Now in news from just the past few weeks demonstrating heightened retail challenges, as a result"
},
{
"start": 1013.24,
"end": 1018.68,
"text": "of the pandemic, we have the Wall Street Journal's August 12th story about Michelin-starred chef"
},
{
"start": 1018.68,
"end": 1023.44,
"text": "Thomas Keller shutting down his tack room restaurant in Hudson Yards, one of the highest"
},
{
"start": 1023.44,
"end": 1027.2,
"text": "profile closings to date due to the coronavirus pandemic."
},
{
"start": 1027.2,
"end": 1032.02,
"text": "The dining spot is a marquee attraction of the $25 billion complex, which was developed"
},
{
"start": 1032.02,
"end": 1034.6,
"text": "by Related and Oxford Properties Group."
},
{
"start": 1034.6,
"end": 1038.68,
"text": "This comes after Neiman Marcus announced it was closing its location there."
},
{
"start": 1038.68,
"end": 1042.96,
"text": "Then we got the bankruptcy announcement from CBL and Associates Properties, one of the"
},
{
"start": 1042.96,
"end": 1048.12,
"text": "country's largest mall owners, which was founded in the 1970s and based in Chattanooga,"
},
{
"start": 1048.12,
"end": 1052.8,
"text": "Tennessee, which announced as part of its BK filing coming in October, that it did reach"
},
{
"start": 1052.8,
"end": 1056.14,
"text": "a debt for equity deal with its bondholders."
},
{
"start": 1056.14,
"end": 1060.56,
"text": "And in the category of desperate times call for desperate measures, Simon Property Group,"
},
{
"start": 1060.56,
"end": 1065.24,
"text": "another one of America's largest shopping mall landlords, is becoming one of its main"
},
{
"start": 1065.24,
"end": 1071.36,
"text": "tenants with deals underway to buy JCPenney's with Brooksfield, as well as on its own buying"
},
{
"start": 1071.36,
"end": 1076.92,
"text": "Brooks Brothers and Lucky Brands out of bankruptcy, and the company led by CEO David Simon is"
},
{
"start": 1076.92,
"end": 1082.16,
"text": "looking at leasing some of its empty department store space to Amazon of all companies for"
},
{
"start": 1082.16,
"end": 1087.04,
"text": "last mile fulfillment and drop off centers, along with perhaps some walk in retail."
},
{
"start": 1087.04,
"end": 1093.64,
"text": "Hey, with the occupancy rate at Simon Properties at its lowest level in a decade, you got"
},
{
"start": 1093.64,
"end": 1095.08,
"text": "to get creative."
},
{
"start": 1095.08,
"end": 1099.9,
"text": "And as Mr. Simon was quoted as saying, there's just nothing out there that says you can't"
},
{
"start": 1099.9,
"end": 1104.34,
"text": "make smart investments outside of your core business, end quote."
},
{
"start": 1104.34,
"end": 1108.1,
"text": "Now especially if your core business is in the dumper."
},
{
"start": 1108.1,
"end": 1113.02,
"text": "Moving to multifamily, where everyone is focused on those rent collection stats, especially"
},
{
"start": 1113.02,
"end": 1117.94,
"text": "with the end of many pandemic aid subsidies, and a report by property management software"
},
{
"start": 1117.94,
"end": 1124.06,
"text": "company, Rent Tech Direct, found that rent payments in August were down 29% year over"
},
{
"start": 1124.06,
"end": 1130.3,
"text": "year and 12% in the last five months, signaling that the expiration of federal aid to offset"
},
{
"start": 1130.3,
"end": 1134.3,
"text": "economic hardship due to the pandemic has a high cost."
},
{
"start": 1134.3,
"end": 1138.98,
"text": "So far until now, according to the National Multifamily Housing Council, apartment rental"
},
{
"start": 1138.98,
"end": 1143.54,
"text": "payments are holding up fairly well, at least for now as their rent payment tracker"
},
{
"start": 1143.54,
"end": 1149.98,
"text": "reported that 79.3% of surveyed households made a full or partial payment by August 6."
},
{
"start": 1149.98,
"end": 1158.82,
"text": "That's slightly better than last month's 77.4% and just shy of the August 2019 level of 81.2."
},
{
"start": 1158.82,
"end": 1163.22,
"text": "As Scott Graham reported for Globe Street, the National Multifamily Housing Chair David"
},
{
"start": 1163.22,
"end": 1168.58,
"text": "Schwartz, who is also CEO of Chicago-based Waterman, said that this is due to the enhanced"
},
{
"start": 1168.58,
"end": 1173.42,
"text": "unemployment benefits enacted under the CARES Act and significant steps by apartment owners"
},
{
"start": 1173.42,
"end": 1175.9,
"text": "and operators to help their residents."
},
{
"start": 1175.9,
"end": 1179.46,
"text": "These unemployment benefits that are proven so important to so many households have now"
},
{
"start": 1179.46,
"end": 1184.26,
"text": "lapsed, meaning greater financial distress for millions and the potential worsening of"
},
{
"start": 1184.26,
"end": 1186.98,
"text": "America's housing affordability crisis."
},
{
"start": 1186.98,
"end": 1191.66,
"text": "The rent tracker covers 11.4 million units of professionally managed apartments across"
},
{
"start": 1191.66,
"end": 1194.5,
"text": "the country of varying size and rental prices."
},
{
"start": 1194.5,
"end": 1198.46,
"text": "The article noted that most of the market's stress has been on the more upscale end of"
},
{
"start": 1198.46,
"end": 1199.9,
"text": "the apartment segment."
},
{
"start": 1199.9,
"end": 1204.42,
"text": "For those renters who lost their jobs, even enhanced unemployment benefits aren't covering"
},
{
"start": 1204.42,
"end": 1207.26,
"text": "their income needs and those high rents."
},
{
"start": 1207.26,
"end": 1211.14,
"text": "Many in some gateway international cities such as Manhattan, Chicago, San Francisco,"
},
{
"start": 1211.14,
"end": 1216.18,
"text": "LA and Miami have set several percentage points during the traditionally strong summer leasing"
},
{
"start": 1216.18,
"end": 1220.34,
"text": "season reflecting unparalleled stress in that segment."
},
{
"start": 1220.34,
"end": 1224.3,
"text": "Highlighting that point, I'm looking at a Wall Street Journal article by Katherine"
},
{
"start": 1224.3,
"end": 1230.42,
"text": "Billy on August 15th describing how tech employees are now starting to flee San Francisco"
},
{
"start": 1230.42,
"end": 1234.86,
"text": "since many aren't working in their offices anymore and the cost and quality of life"
},
{
"start": 1234.86,
"end": 1237.76,
"text": "issues are completely out of whack there."
},
{
"start": 1237.76,
"end": 1241.58,
"text": "She pointed to several examples of people leaving the city for far away places such as"
},
{
"start": 1241.58,
"end": 1248.9,
"text": "Houston, Wisconsin and North Carolina but also to closer markets such as SACDO and Oakland."
},
{
"start": 1248.9,
"end": 1253.06,
"text": "Now for some info on how all this shakes out in the capital markets and according to"
},
{
"start": 1253.06,
"end": 1258.1,
"text": "the Mortgage Bankers Association, commercial and multifamily loan volumes are expected"
},
{
"start": 1258.1,
"end": 1266.5,
"text": "to decrease by 40% in 2020 compared to 2019 when originations topped $600 billion, the"
},
{
"start": 1266.5,
"end": 1269.5,
"text": "peak since the last global financial crisis."
},
{
"start": 1269.5,
"end": 1273.9,
"text": "The group reports that lenders have mainly been focused on managing delinquencies and"
},
{
"start": 1273.9,
"end": 1276.3,
"text": "mitigating defaults of current loans."
},
{
"start": 1276.3,
"end": 1280.74,
"text": "Nonetheless, for the most part, multifamily office and industrial loans are performing"
},
{
"start": 1280.74,
"end": 1285.62,
"text": "well and staying current as rent collections have remained strong in those sectors which"
},
{
"start": 1285.62,
"end": 1288.82,
"text": "so far has prevented a wave of delinquencies."
},
{
"start": 1288.82,
"end": 1293.02,
"text": "And for those looking for deals, the association noted that in this low interest rate"
},
{
"start": 1293.02,
"end": 1298.26,
"text": "environment, there will be ample capital and competition for quality multifamily and"
},
{
"start": 1298.26,
"end": 1303.58,
"text": "industrial properties, more selective for office and certainly for retail and challenging"
},
{
"start": 1303.58,
"end": 1307.6,
"text": "for the hospitality sector until the market can find its footing."
},
{
"start": 1307.6,
"end": 1312.12,
"text": "With healthy rent collections and apartment office and industrial assets, lenders are getting"
},
{
"start": 1312.12,
"end": 1314.86,
"text": "comfortable with new loan originations."
},
{
"start": 1314.86,
"end": 1319.46,
"text": "In the first stage of the crisis, the CMBS market was completely frozen due to a lack"
},
{
"start": 1319.46,
"end": 1323.68,
"text": "of liquidity in the bond market, but conduit lenders have eased back into the market with"
},
{
"start": 1323.68,
"end": 1327.24,
"text": "new issuance and more efficient pricing."
},
{
"start": 1327.24,
"end": 1332.18,
"text": "And it's no surprise that the stats show retail and hospitality properties are much"
},
{
"start": 1332.18,
"end": 1334.62,
"text": "more exposed to defaulting loans."
},
{
"start": 1334.62,
"end": 1340.14,
"text": "The data clearly shows the stress has been in the retail and hospitality sectors as expected,"
},
{
"start": 1340.14,
"end": 1347.42,
"text": "though those assets only made up collectively 13% of total originations in 2019."
},
{
"start": 1347.42,
"end": 1351.98,
"text": "Now after a sharp uptick in delinquencies in April and May in the hotel sector, delinquency"
},
{
"start": 1351.98,
"end": 1357.08,
"text": "rates leveled off in June as some leisure travel returned."
},
{
"start": 1357.08,
"end": 1364.52,
"text": "Now CBRE's recently released lending momentum index corroborated MBAs reports, noting the"
},
{
"start": 1364.52,
"end": 1368.4,
"text": "temporary freeze in commercial real estate lending and transactions in March through"
},
{
"start": 1368.4,
"end": 1373.68,
"text": "early April led to fewer loan closings in the second quarter as their index, which tracks"
},
{
"start": 1373.68,
"end": 1380.4,
"text": "the pace of US commercial loan closings, fell 29.3% from its first quarter close and down"
},
{
"start": 1380.4,
"end": 1383.38,
"text": "over 20% from a year ago."
},
{
"start": 1383.38,
"end": 1387.88,
"text": "It reported that loan credit stress quickly emerged in the retail and hotel sectors during"
},
{
"start": 1387.88,
"end": 1396.04,
"text": "the pandemic lockdown, pushing the overall CMBS delinquency rate up to 6.37% in June"
},
{
"start": 1396.04,
"end": 1399.48,
"text": "up from 1.24% in March."
},
{
"start": 1399.48,
"end": 1404.0,
"text": "June delinquencies varied substantially by property type with hotel and retail, as we've"
},
{
"start": 1404.0,
"end": 1405.68,
"text": "noted faring the worst."
},
{
"start": 1405.68,
"end": 1410.76,
"text": "However, the report did note that the market saw better liquidity later in the quarter and"
},
{
"start": 1410.76,
"end": 1416.24,
"text": "multifamily agency and certain industrial deals were bright spots, while other sectors suffered"
},
{
"start": 1416.24,
"end": 1421.64,
"text": "from selectivity and the withdrawal of commercial mortgage backed securities and alternative sources"
},
{
"start": 1421.64,
"end": 1422.92,
"text": "of capital."
},
{
"start": 1422.92,
"end": 1427.44,
"text": "Now Brian Staufers, who serves as global president of debt and structured finance for capital"
},
{
"start": 1427.44,
"end": 1433.32,
"text": "markets at CBRE and is also the 2020 chairman for the Mortgage Bankers Association, said"
},
{
"start": 1433.32,
"end": 1438.66,
"text": "that while there has been a steady improvement in the number of loan applications over the"
},
{
"start": 1438.66,
"end": 1444.48,
"text": "past five weeks, he anticipates that commercial mortgage markets will remain muted over the"
},
{
"start": 1444.48,
"end": 1450.88,
"text": "near term, especially for retail and hospitality properties, as well as value added deals which"
},
{
"start": 1450.88,
"end": 1454.56,
"text": "face the greatest underwriting challenges."
},
{
"start": 1454.56,
"end": 1459.12,
"text": "Speaking of underwriting, they report that loan underwriting measures have changed only"
},
{
"start": 1459.12,
"end": 1461.0,
"text": "modestly during the quarter."
},
{
"start": 1461.0,
"end": 1467.28,
"text": "The average LTV ratio fell, while the average debt service coverage ratio and debt yield"
},
{
"start": 1467.28,
"end": 1468.28,
"text": "rose."
},
{
"start": 1468.28,
"end": 1473.0,
"text": "The average amortization rate fell, reflecting a higher percentage of loans carrying either"
},
{
"start": 1473.0,
"end": 1475.88,
"text": "partial or full term interest only."
},
{
"start": 1475.88,
"end": 1479.76,
"text": "Now in the near term, they say underwriting will likely remain conservative due to current"
},
{
"start": 1479.76,
"end": 1484.64,
"text": "economic conditions and environmental challenges due to the pandemic."
},
{
"start": 1484.64,
"end": 1486.8,
"text": "That is for sure."
},
{
"start": 1486.8,
"end": 1491.96,
"text": "And now we have a message from a sponsor of our show, Capital Rivers Commercial, led by"
},
{
"start": 1491.96,
"end": 1497.16,
"text": "Greg Aguirre, who want to make sure that in case you haven't heard, there's a massive"
},
{
"start": 1497.16,
"end": 1502.94,
"text": "tax increase on the ballot in November targeted at owners and renters of commercial real estate."
},
{
"start": 1502.94,
"end": 1508.68,
"text": "If that's you, then you need to be well aware of Proposition 15 and the team at Capital"
},
{
"start": 1508.68,
"end": 1512.38,
"text": "Rivers Commercial can tell you all about it."
},
{
"start": 1512.38,
"end": 1517.56,
"text": "For most commercial properties in California, Prop 15 would end the highly priced taxpayer"
},
{
"start": 1517.56,
"end": 1522.62,
"text": "protections that have been afforded by Prop 13 for more than 40 years."
},
{
"start": 1522.62,
"end": 1526.28,
"text": "You can look it up online, but if you want to really understand and prepare for it,"
},
{
"start": 1526.28,
"end": 1531.12,
"text": "you'll want to talk to an expert like Greg and his team of experts at Capital Rivers."
},
{
"start": 1531.12,
"end": 1535.52,
"text": "If you'd like to see more, check out their Prop 15 landing page on their website at"
},
{
"start": 1535.52,
"end": 1538.08,
"text": "CapitalRivers.com."
},
{
"start": 1538.08,
"end": 1540.84,
"text": "These are not your typical real estate brokers."
},
{
"start": 1540.84,
"end": 1545.56,
"text": "Work with the best, work with Capital Rivers."
},
{
"start": 1545.56,
"end": 1550.96,
"text": "In this segment of the show, I typically discuss real estate issues, such as things like legislation"
},
{
"start": 1550.96,
"end": 1554.44,
"text": "regionally or nationally, as well as executive moves."
},
{
"start": 1554.44,
"end": 1559.0,
"text": "But in this show, I want to note the passing of industry icon Gerald D. Hines, founder"
},
{
"start": 1559.0,
"end": 1563.32,
"text": "and chairman of the preeminent real estate firm Hines, who passed away peacefully at"
},
{
"start": 1563.32,
"end": 1566.24,
"text": "his home on Sunday, August 23rd."
},
{
"start": 1566.24,
"end": 1571.2,
"text": "In Gary, Indiana in 1925, he recently celebrated his 95th birthday."
},
{
"start": 1571.2,
"end": 1575.28,
"text": "The news was announced today by his son, Jeffrey C. Hines, who has been running the firm as"
},
{
"start": 1575.28,
"end": 1579.72,
"text": "president and now assumes the role of chairman and CEO of the company."
},
{
"start": 1579.72,
"end": 1584.14,
"text": "Mr. Hines was widely regarded and honored as a visionary in the industry."
},
{
"start": 1584.14,
"end": 1590.04,
"text": "He transformed an entrepreneurial startup established in Houston in 1957 into an international"
},
{
"start": 1590.04,
"end": 1594.7,
"text": "powerhouse renowned for developing, owning and managing some of the world's most recognizable"
},
{
"start": 1594.7,
"end": 1596.58,
"text": "architectural landmarks."
},
{
"start": 1596.58,
"end": 1603.42,
"text": "With more than 4,800 employees, Hines today is active in 225 cities and 25 countries."
},
{
"start": 1603.42,
"end": 1611.7,
"text": "It has 165 developments currently underway and has redeveloped or acquired 1,426 properties,"
},
{
"start": 1611.7,
"end": 1614.42,
"text": "totaling over 472 million square feet."
},
{
"start": 1614.42,
"end": 1622.26,
"text": "And its current property and asset management portfolio has 576 properties with over 246"
},
{
"start": 1622.26,
"end": 1623.42,
"text": "million square feet."
},
{
"start": 1623.98,
"end": 1629.94,
"text": "Mr. Hines was revered for his ability to enhance urban landscapes and add lasting value to communities"
},
{
"start": 1629.94,
"end": 1634.22,
"text": "through innovative design concepts and the highest possible standards of quality, which"
},
{
"start": 1634.22,
"end": 1637.5,
"text": "set the benchmark for excellence throughout the industry."
},
{
"start": 1637.5,
"end": 1642.5,
"text": "He believed that memorable design by prominent architects could garner commercial success"
},
{
"start": 1642.5,
"end": 1645.86,
"text": "and he was a leader in the push for sustainability."
},
{
"start": 1645.86,
"end": 1651.86,
"text": "Significant projects include 53rd and 3rd, the lipstick building in New York City, 101"
},
{
"start": 1651.86,
"end": 1658.22,
"text": "California in San Fran, 191 Peach Tree in Atlanta, three first national plaza in Chicago"
},
{
"start": 1658.22,
"end": 1664.42,
"text": "and several in Houston, such as One Shell Plaza, the Galleria and Williams Tower."
},
{
"start": 1664.42,
"end": 1669.58,
"text": "Mr. Hines graduated from Purdue University with a degree in mechanical engineering,"
},
{
"start": 1669.58,
"end": 1674.9,
"text": "later received honorary doctorates from Purdue and the University of Houston."
},
{
"start": 1674.9,
"end": 1679.34,
"text": "Among his proudest accomplishments is the Gerald D. Hines College of Architecture at"
},
{
"start": 1679.34,
"end": 1681.46,
"text": "the University of Houston."
},
{
"start": 1681.46,
"end": 1687.1,
"text": "He is survived by his wife Barbara, four children, 15 grandchildren and one great grandson."
},
{
"start": 1687.1,
"end": 1691.92,
"text": "He will be laid to rest in a private family ceremony in Aspen, Colorado and a celebration"
},
{
"start": 1691.92,
"end": 1697.06,
"text": "of his life will be held at a future date when it is safe to get together."
},
{
"start": 1697.06,
"end": 1699.3,
"text": "Rest in peace Mr. Hines."
},
{
"start": 1699.3,
"end": 1703.46,
"text": "Now let me tell you about another sponsor of the show, Redwood Mortgage."
},
{
"start": 1703.46,
"end": 1708.58,
"text": "Redwood Mortgage is a direct portfolio lender providing loans on commercial office, industrial,"
},
{
"start": 1708.58,
"end": 1713.62,
"text": "multi-family mixed use and residential investment properties in California."
},
{
"start": 1713.62,
"end": 1720.42,
"text": "In business for over 42 years, Redwood Mortgage is established, trusted and well capitalized."
},
{
"start": 1720.42,
"end": 1734.34,
"text": "A good place to go when the banks say no, call Redwood Mortgage at 800-659-6593 or redwoodmortgage.com."
},
{
"start": 1734.34,
"end": 1738.22,
"text": "Now it's time to get into our real estate version of the Sports Highlight Reel with"
},
{
"start": 1738.22,
"end": 1743.02,
"text": "our very exciting rent TV round up of major deal and development news from around the"
},
{
"start": 1743.02,
"end": 1744.18,
"text": "U.S."
},
{
"start": 1744.18,
"end": 1748.78,
"text": "And as I normally do, I'll start on the east coast and head west."
},
{
"start": 1748.78,
"end": 1754.98,
"text": "Starting in Philly, where developer Parkway Corp. has obtained $187 million in financing"
},
{
"start": 1754.98,
"end": 1762.34,
"text": "for its 305,000 square foot class A office ground up development project at 2222 Market"
},
{
"start": 1762.34,
"end": 1765.18,
"text": "Street in the Center City neighborhood."
},
{
"start": 1765.18,
"end": 1770.34,
"text": "As Holly Dutton reported for commercial property executive Parkway, which is based in Philly,"
},
{
"start": 1770.34,
"end": 1775.38,
"text": "got the construction and mezzanine financing for the 19 story office building through Meridian"
},
{
"start": 1775.38,
"end": 1779.82,
"text": "Capital Group who negotiated the financing on behalf of Parkway."
},
{
"start": 1779.82,
"end": 1784.34,
"text": "The senior loan was provided by Balance Sheet lenders and the mezzanine loan and equity"
},
{
"start": 1784.34,
"end": 1786.32,
"text": "were provided by Acore."
},
{
"start": 1786.32,
"end": 1791.36,
"text": "The tower, designed by architecture firm Gensler, is being constructed to achieve LEED, gold"
},
{
"start": 1791.36,
"end": 1797.36,
"text": "and fitwell certifications and global law firm Morgan Lewis Embakias has signed on as"
},
{
"start": 1797.36,
"end": 1801.92,
"text": "the anchor tenant at the property, which will feature tenant amenities, including a fitness"
},
{
"start": 1801.92,
"end": 1806.92,
"text": "center, underground parking garage, penthouse and rooftop terraces and high ceilings with"
},
{
"start": 1806.92,
"end": 1809.0,
"text": "floor to ceiling glass."
},
{
"start": 1809.0,
"end": 1811.92,
"text": "Parkway is expected to begin development this fall."
},
{
"start": 1811.92,
"end": 1815.76,
"text": "Miss Dutton noted that Parkway is one of several developers currently building office"
},
{
"start": 1815.76,
"end": 1817.2,
"text": "projects in Philly."
},
{
"start": 1817.2,
"end": 1824.0,
"text": "These include tower investments, who is developing 400 North Broad Street, a 526,000 square foot"
},
{
"start": 1824.0,
"end": 1828.96,
"text": "office redevelopment project, also in Center City, that's expected to be completed in"
},
{
"start": 1828.96,
"end": 1835.16,
"text": "January 2021 and will transform the former Philadelphia Inquirer building into the new"
},
{
"start": 1835.16,
"end": 1838.36,
"text": "headquarters for the Philadelphia Police Department."
},
{
"start": 1838.36,
"end": 1844.64,
"text": "And nearby in University City in that neighborhood, a joint venture between the University Science"
},
{
"start": 1844.64,
"end": 1853.76,
"text": "Center, Ventos and Wexford Science and Technology is developing one U City Square, a $280 million"
},
{
"start": 1853.76,
"end": 1858.56,
"text": "office and lab facility that broke out earlier this year and is scheduled to be completed"
},
{
"start": 1858.56,
"end": 1860.52,
"text": "in December 2021."
},
{
"start": 1860.52,
"end": 1865.04,
"text": "The project is the latest phase of the U City Square knowledge community, a research"
},
{
"start": 1865.04,
"end": 1867.56,
"text": "medical and life sciences campus."
},
{
"start": 1867.56,
"end": 1873.8,
"text": "Next, heading south to Delray Beach, Florida, Cortland Partners, LLC, an Atlanta based"
},
{
"start": 1873.8,
"end": 1882.6,
"text": "multifamily developer and investor, paid about $74 million or $260,000 per unit for"
},
{
"start": 1882.6,
"end": 1887.96,
"text": "a 284 unit complex that was built only three years ago."
},
{
"start": 1887.96,
"end": 1892.2,
"text": "In the deal, which closed in July, Cortland bought the complex from Wood Real Estate"
},
{
"start": 1892.2,
"end": 1898.36,
"text": "Investors LLC, an LLC that is part of Wood Partners, the national Atlanta based multifamily"
},
{
"start": 1898.36,
"end": 1903.68,
"text": "developer and investor, which developed the property in 2017."
},
{
"start": 1903.68,
"end": 1909.04,
"text": "As reported by Lydia Dinkova for Globe Street, the property was recently renamed as Cortland"
},
{
"start": 1909.04,
"end": 1915.32,
"text": "Delray Station and consists of seven buildings on 12 acres located northwest of Interstate"
},
{
"start": 1915.32,
"end": 1919.16,
"text": "95 and Atlantic Avenue on Depot Avenue."
},
{
"start": 1919.16,
"end": 1924.76,
"text": "And it was 95% occupied at the time of sale, according to CoStar Group, with rents ranging"
},
{
"start": 1924.76,
"end": 1931.2,
"text": "from about $13.89 a month for smaller one bedrooms up to $21.55 for the three bedrooms,"
},
{
"start": 1931.2,
"end": 1933.36,
"text": "according to the apartment website."
},
{
"start": 1933.36,
"end": 1938.88,
"text": "Now, moving west to the Nashville area, to Lebanon, Tennessee, where Duke Realty, the"
},
{
"start": 1938.88,
"end": 1945.2,
"text": "large industrial developer, has refilled a recently vacated space at its Park 840 West"
},
{
"start": 1945.2,
"end": 1951.44,
"text": "14-840 Logistics Building, bringing it to full occupancy by signing a new lease of"
},
{
"start": 1951.44,
"end": 1958.08,
"text": "approximately 208,000 square feet with Optoro, Inc., a temp company that creates software"
},
{
"start": 1958.08,
"end": 1962.32,
"text": "which helps retailers manage excess and return to inventory."
},
{
"start": 1962.32,
"end": 1966.36,
"text": "As Scott Baltic, reporter for Commercial Property Executive, the tenant will use the class A"
},
{
"start": 1966.36,
"end": 1971.72,
"text": "location as its flagship returns processing and R&D facility."
},
{
"start": 1971.72,
"end": 1978.68,
"text": "The building, which was built in 2006, contains a total of approximately 654,000 square feet"
},
{
"start": 1978.68,
"end": 1984.64,
"text": "and is located at 14840 Central Pike east of downtown Nashville and very close to the"
},
{
"start": 1984.64,
"end": 1990.24,
"text": "interchange of I-840 and Highway 109-265."
},
{
"start": 1990.24,
"end": 1995.6,
"text": "Cushman and Wakefield was the property's listing broker and JLL rep the tenant."
},
{
"start": 1995.6,
"end": 2000.08,
"text": "To give you some market info, the Metro Nashville warehouse distribution market remained strong"
},
{
"start": 2000.08,
"end": 2004.44,
"text": "despite the pandemic, according to a second-quarter report from JLL."
},
{
"start": 2004.44,
"end": 2010.6,
"text": "Year-to-date net absorption was nearly 2.2 million square feet on an inventory of 155"
},
{
"start": 2010.6,
"end": 2017.08,
"text": "million square feet and direct asking rents continued to climb, reaching $5.07 per square"
},
{
"start": 2017.08,
"end": 2019.32,
"text": "foot as of the second quarter."
},
{
"start": 2019.32,
"end": 2024.12,
"text": "A little more than 4.2 million square feet of space was under construction, while total"
},
{
"start": 2024.12,
"end": 2029.68,
"text": "vacancy was only 3.2% and trending down."
},
{
"start": 2029.68,
"end": 2036.16,
"text": "Heading north to Chicago, the big news there is that the JV, comprised of Schmo, SHVO,"
},
{
"start": 2036.16,
"end": 2043.76,
"text": "and Deutsche Finance America, has completed its $376 million acquisition of 333 South"
},
{
"start": 2043.76,
"end": 2055.8,
"text": "Wabash, a 45-story, 1.2 million square foot office skyscraper in the city which is known"
},
{
"start": 2055.8,
"end": 2059.2,
"text": "as Big Red, formerly CNA Center."
},
{
"start": 2059.2,
"end": 2064.26,
"text": "AIG and Goldman Sachs provided financing for the purchase, which was first announced in"
},
{
"start": 2064.26,
"end": 2070.98,
"text": "January and divides out to about $313 per square foot."
},
{
"start": 2070.98,
"end": 2076.42,
"text": "As Pavel Kazukou reported in Commercial Property Executive, the sellers were the John Buck"
},
{
"start": 2076.42,
"end": 2083.06,
"text": "Company and Morgan Stanley, which paid $108 million for the iconic tower in 2016."
},
{
"start": 2083.06,
"end": 2090.06,
"text": "In 2018, Brookfield Asset Management provided the partnership with a $195 million loan,"
},
{
"start": 2090.06,
"end": 2094.12,
"text": "which financed major capital improvements on the building the following year."
},
{
"start": 2094.12,
"end": 2100.12,
"text": "The property, located one block from Grant Park in the Loop, was completed in 1973 and"
},
{
"start": 2100.12,
"end": 2108.4,
"text": "amenities include childcare facilities, auditorium with 250 seats, tenant lounges, a food hall"
},
{
"start": 2108.4,
"end": 2109.86,
"text": "and fitness center."
},
{
"start": 2109.86,
"end": 2114.24,
"text": "The high rise is home to a diverse mix of tenants, including the Chicago Housing Authority,"
},
{
"start": 2114.24,
"end": 2118.6,
"text": "Northern Trust, and the former namesake, CNA."
},
{
"start": 2118.6,
"end": 2126.56,
"text": "Moving down to Dallas, Texas, VREIT and Ocean West Capital Partners LLC have acquired a 2.3"
},
{
"start": 2126.56,
"end": 2133.72,
"text": "million square foot distribution and warehouse facility in Dallas for about $247 million"
},
{
"start": 2133.72,
"end": 2139.6,
"text": "or about $107 per square foot from North Point Development, which developed the asset"
},
{
"start": 2139.6,
"end": 2141.88,
"text": "and will be part of the joint venture."
},
{
"start": 2141.88,
"end": 2148.84,
"text": "As Gao Kalinowski from Commercial Property Executive reported, the facility, located 9314"
},
{
"start": 2148.84,
"end": 2155.04,
"text": "West Jefferson Boulevard, is fully leased by an investment-grade home improvement retailer."
},
{
"start": 2155.04,
"end": 2160.64,
"text": "CBRE National Partners represented the parties in the disposition and the transaction."
},
{
"start": 2160.64,
"end": 2165.8,
"text": "The acquisition is part of VREIT's industrial partnership with Korea Investment and Securities"
},
{
"start": 2165.8,
"end": 2168.98,
"text": "Company, which is advised by Ocean West."
},
{
"start": 2168.98,
"end": 2175.96,
"text": "This partnership started in May 2019 and focuses on the acquisition of single-tenant industrial"
},
{
"start": 2175.96,
"end": 2180.58,
"text": "assets under long-term leases to industrial-grade tenants."
},
{
"start": 2180.58,
"end": 2184.54,
"text": "This is the seventh property acquired for the portfolio, which now has approximately"
},
{
"start": 2184.54,
"end": 2188.1,
"text": "$654 million in assets."
},
{
"start": 2188.1,
"end": 2193.06,
"text": "VREIT, which is a Phoenix-based full-service operating company, owns and manages one of"
},
{
"start": 2193.06,
"end": 2199.78,
"text": "the largest portfolios of single-tenant commercial properties in the U.S., now valued at $14.7"
},
{
"start": 2199.78,
"end": 2207.02,
"text": "billion with 3,800 properties and 88.9 million square feet of space."
},
{
"start": 2207.02,
"end": 2212.1,
"text": "Heading out to the West Coast, to the great little city of Culver City, which is surrounded"
},
{
"start": 2212.1,
"end": 2220.38,
"text": "by the city of Los Angeles, Northwood investors paid $120 million or $417 per square foot"
},
{
"start": 2220.38,
"end": 2226.94,
"text": "to Norton LifeLock for the 288,000-square-foot office building in 900-corporate point with"
},
{
"start": 2226.94,
"end": 2232.06,
"text": "a seller-occupied space, and actually the seller was the developer of the building when"
},
{
"start": 2232.06,
"end": 2238.04,
"text": "the company was called Symantec prior to its name change to Norton LifeLock after Broadcom"
},
{
"start": 2238.04,
"end": 2242.62,
"text": "acquired part of Symantec's software business."
},
{
"start": 2242.62,
"end": 2247.02,
"text": "The company will stay in two floors of the five-story building under a seven-year lease."
},
{
"start": 2247.02,
"end": 2249.86,
"text": "Bushman and Wakefield brokered the sale transaction."
},
{
"start": 2249.86,
"end": 2254.54,
"text": "Northwood is an active investor on the west side of L.A., owning three of the properties"
},
{
"start": 2254.54,
"end": 2259.78,
"text": "in the area, West L.A.'s Triton Center Office Campus, the London West Hollywood Hotel,"
},
{
"start": 2259.78,
"end": 2263.98,
"text": "and about 19 acres of undeveloped land in Playa Vista."
},
{
"start": 2263.98,
"end": 2269.22,
"text": "Moving down to the Orange County city of Irvine, Panasonic Avionics, the maker of in-flight"
},
{
"start": 2269.22,
"end": 2273.94,
"text": "entertainment systems for airlines, plans to relocate its corporate headquarters from"
},
{
"start": 2273.94,
"end": 2279.74,
"text": "its long-time base in Lake Forest to Irvine after inking the largest office lease reported"
},
{
"start": 2279.74,
"end": 2286.02,
"text": "in Orange County this year, signing a nearly 260,000-square-foot headquarters lease at"
},
{
"start": 2286.02,
"end": 2289.42,
"text": "LBA Realty's Park Place in Irvine."
},
{
"start": 2289.42,
"end": 2295.22,
"text": "The consolidation deal covers multiple buildings at the 2.2 million-square-foot office campus"
},
{
"start": 2295.22,
"end": 2301.42,
"text": "at Michelson Drive and Jamboree Road, right along the San Diego 405 freeway, where Panasonic"
},
{
"start": 2301.42,
"end": 2306.86,
"text": "Avionics will house corporate engineering production and administrative operations."
},
{
"start": 2306.86,
"end": 2311.66,
"text": "Brokers from Seville represented the tenant, while a team of brokers from CBRE and Cushman"
},
{
"start": 2311.66,
"end": 2317.48,
"text": "and Wakefield repped LBA, the OC-based owner of office and industrial properties led by"
},
{
"start": 2317.48,
"end": 2320.34,
"text": "Phil Belling and Steve Layton."
},
{
"start": 2320.34,
"end": 2325.82,
"text": "Our next and last stop on our deal roundup takes us to the beautiful Torrey Pines area"
},
{
"start": 2325.82,
"end": 2331.54,
"text": "along the coast in San Diego County near La Jolla, where Alexandria Real Estate Equities,"
},
{
"start": 2331.54,
"end": 2338.52,
"text": "the major owner of biotech office and lab properties, paid $97.5 million to the National"
},
{
"start": 2338.52,
"end": 2344.34,
"text": "University System for the point at Torrey Pines, consisting of two office buildings that"
},
{
"start": 2344.34,
"end": 2352.74,
"text": "the seller occupies, totaling 139,000 square feet, located at 11255 and 11355 North Torrey"
},
{
"start": 2352.74,
"end": 2359.54,
"text": "Pines Road, on an 11-acre site that's roughly midway between the Pacific Ocean and the I-5"
},
{
"start": 2359.54,
"end": 2360.54,
"text": "Freeway."
},
{
"start": 2360.54,
"end": 2365.62,
"text": "The property is occupied by the National University System and National University's two building"
},
{
"start": 2365.62,
"end": 2371.62,
"text": "headquarters and is located in San Diego's top biotech and life sciences sub-market."
},
{
"start": 2371.62,
"end": 2376.38,
"text": "The property, the beautiful property, provides unobstructed panoramic views of the Pacific"
},
{
"start": 2376.38,
"end": 2380.3,
"text": "Ocean and Torrey Pines Reserve, and it's just across the street from the prestigious"
},
{
"start": 2380.3,
"end": 2386.54,
"text": "Torrey Pines Golf Course and just a few miles from the University Town Center area with"
},
{
"start": 2386.54,
"end": 2393.38,
"text": "such prestigious research institutes as Scripps Research, Sanford Consortium, Salk Institute"
},
{
"start": 2393.38,
"end": 2395.26,
"text": "and UC San Diego."
},
{
"start": 2395.26,
"end": 2400.74,
"text": "A team from CBRE represented the seller National University System, which is a veteran-founded"
},
{
"start": 2400.74,
"end": 2407.86,
"text": "non-profit university with over 28 campuses around the world."
},
{
"start": 2407.86,
"end": 2410.18,
"text": "And that's it for our deal roundup."
},
{
"start": 2410.18,
"end": 2414.66,
"text": "Now it's time to zip along the tech drive, where we discuss the various combinations"
},
{
"start": 2414.66,
"end": 2420.06,
"text": "of real estate and technology, such as new websites and services, and now as a result"
},
{
"start": 2420.06,
"end": 2423.74,
"text": "of the COVID pandemic, new tools to help with that."
},
{
"start": 2423.74,
"end": 2429.3,
"text": "And the subject of this segment, financial tech startup Till, certainly can play a role"
},
{
"start": 2429.3,
"end": 2436.1,
"text": "in that since it is a platform to help property managers and owners manage unusual arrangements,"
},
{
"start": 2436.1,
"end": 2441.82,
"text": "such as tenants paying partial rent, a common scenario now, and the company received $8"
},
{
"start": 2441.82,
"end": 2450.58,
"text": "million in seed funding, wow, I'm so jealous, and they got that from VC firms Route 66 Ventures,"
},
{
"start": 2450.58,
"end": 2454.34,
"text": "Metaprop and NextGen Venture Partners."
},
{
"start": 2454.34,
"end": 2458.14,
"text": "The company Exact said it will use the money to continue its growth and to attract new"
},
{
"start": 2458.14,
"end": 2460.14,
"text": "landlords and renters as users."
},
{
"start": 2460.14,
"end": 2464.98,
"text": "The company's flexible rent platform lets renters set up a customized payment schedule"
},
{
"start": 2464.98,
"end": 2468.58,
"text": "that better lines up with their individual cashflow situations."
},
{
"start": 2468.58,
"end": 2472.8,
"text": "And the goal is to help them to become more consistent on-time payers, avoid late fees"
},
{
"start": 2472.8,
"end": 2474.58,
"text": "and certainly evictions."
},
{
"start": 2474.58,
"end": 2478.82,
"text": "Now more renters are making partial payments, as I said, and tech like this could make"
},
{
"start": 2478.82,
"end": 2483.1,
"text": "it easier for property managers to manage unusual arrangements."
},
{
"start": 2483.1,
"end": 2487.98,
"text": "As the COVID-19 pandemic continues to spread across the country, mass unemployment and other"
},
{
"start": 2487.98,
"end": 2492.78,
"text": "economic fallout is threatening to push those numbers even higher, said Till founder"
},
{
"start": 2492.78,
"end": 2495.3,
"text": "and CEO David Sullivan."
},
{
"start": 2495.3,
"end": 2500.94,
"text": "The company is headquartered in Washington, D.C. and the service is available in 170 properties"
},
{
"start": 2500.94,
"end": 2506.46,
"text": "in 14 U.S. states comprising 30,000 units, and they have partnerships with several major"
},
{
"start": 2506.46,
"end": 2509.12,
"text": "real estate owners and property management companies."
},
{
"start": 2509.12,
"end": 2514.78,
"text": "The PR that went out quoted Les Menkes, managing partner of Acre, one of Till's clients who"
},
{
"start": 2514.78,
"end": 2518.96,
"text": "said that the service has completely altered the way they approach rent collection and"
},
{
"start": 2518.96,
"end": 2522.84,
"text": "more importantly, improve their fundamental relationship with residents."
},
{
"start": 2522.84,
"end": 2527.2,
"text": "By taking a more personalized approach with each of their units, they've been able to"
},
{
"start": 2527.2,
"end": 2532.24,
"text": "significantly reduce turnover at their buildings and get a more comprehensive, accurate view"
},
{
"start": 2532.24,
"end": 2534.12,
"text": "of their revenue stream."
},
{
"start": 2534.12,
"end": 2537.96,
"text": "They've also been able to avoid imposing penalties on their renters, putting them in"
},
{
"start": 2537.96,
"end": 2544.44,
"text": "better financial health and ensuring better long-term stability to their business."
},
{
"start": 2544.44,
"end": 2549.08,
"text": "For our next stop on the tech drive, I will report about the recent podcast from real"
},
{
"start": 2549.08,
"end": 2554.92,
"text": "estate tech VC firm Fifth Wall, thereby making this news piece a crossover with our next"
},
{
"start": 2554.92,
"end": 2558.24,
"text": "power segment about podcasts and webinars."
},
{
"start": 2558.24,
"end": 2562.96,
"text": "Fifth Wall led by the dashing and debonair Brendan Wallace, located not too far from"
},
{
"start": 2562.96,
"end": 2568.24,
"text": "me in the marina, produces a series of podcasts I've mentioned here before called Fly on"
},
{
"start": 2568.24,
"end": 2573.18,
"text": "the Wall, where Mr. Wallace and sometimes other partners in the firm have very compelling"
},
{
"start": 2573.18,
"end": 2577.42,
"text": "conversations with leaders in the real estate and real estate tech industries."
},
{
"start": 2577.42,
"end": 2583.18,
"text": "You can find these on their website, and in their last two episodes, both dropped in the"
},
{
"start": 2583.18,
"end": 2589.38,
"text": "past two weeks, Brandon interviews Jeremy Waxman, president of Zillow, about recent macro trends"
},
{
"start": 2589.38,
"end": 2593.48,
"text": "in the housing capital markets, both pandemic related and otherwise."
},
{
"start": 2593.48,
"end": 2598.46,
"text": "They cover the digitization of the home buying and selling process, predictions for the future"
},
{
"start": 2598.46,
"end": 2604.28,
"text": "of iBuying and Zillow's vision for an always-on tech-enabled real estate market."
},
{
"start": 2604.28,
"end": 2610.02,
"text": "Another episode features Fifth Wall partner Vic Challa interviewing Lucas Haldeman, CEO"
},
{
"start": 2610.02,
"end": 2616.5,
"text": "and founder of Fifth Wall portfolio company SmartRent, to discuss the future of home automation."
},
{
"start": 2616.5,
"end": 2621.46,
"text": "Lucas explains how the work-from-home era has catalyzed a shift in the digitization"
},
{
"start": 2621.46,
"end": 2624.38,
"text": "of homes and rental properties."
},
{
"start": 2624.38,
"end": 2627.02,
"text": "Very interesting podcast there."
},
{
"start": 2627.02,
"end": 2632.2,
"text": "Another crossover for our tech drive and power segments is provided by RealCom, the real estate"
},
{
"start": 2632.2,
"end": 2639.06,
"text": "tech news and conference company, which is having its RealCom slash IBcon 2020 event on"
},
{
"start": 2639.06,
"end": 2645.7,
"text": "October 28th through October 30th, and it will hopefully combine on-site and online components."
},
{
"start": 2645.7,
"end": 2648.84,
"text": "Part of the event is scheduled to be held at the Marriott Gaylord Rockies Resort and"
},
{
"start": 2648.84,
"end": 2652.62,
"text": "Convention Center in Aurora, Colorado, just outside Denver."
},
{
"start": 2652.62,
"end": 2655.82,
"text": "The newly built world-class resort will provide a state-of-the-art environment for"
},
{
"start": 2655.82,
"end": 2657.98,
"text": "a safe and productive event."
},
{
"start": 2657.98,
"end": 2662.86,
"text": "In addition to the on-site event, RealCom IBcon will be introducing an engaging and highly"
},
{
"start": 2662.86,
"end": 2665.82,
"text": "interactive virtual conference component."
},
{
"start": 2665.82,
"end": 2670.06,
"text": "RealCom, led by Jim Young, is a leader in this space, so we expect it will be a valuable"
},
{
"start": 2670.06,
"end": 2672.9,
"text": "conference either online or in person."
},
{
"start": 2672.9,
"end": 2677.66,
"text": "Find out more and register at realcom.com."
},
{
"start": 2677.66,
"end": 2681.46,
"text": "And now let's fully dive into our power segment, where I tell you about podcasts,"
},
{
"start": 2681.46,
"end": 2684.2,
"text": "webinars, events and recordings for the industry."
},
{
"start": 2684.2,
"end": 2688.6,
"text": "Edit Power, and I will start by telling you about new episodes of some real estate"
},
{
"start": 2688.6,
"end": 2694.88,
"text": "podcasts I'm a fan of, starting with one called Teague Talks, T-E-A-G-U-E, where"
},
{
"start": 2694.88,
"end": 2700.4,
"text": "Hunter Hotel Advisor CEO Teague Hunter, based out of Atlanta, conducts very interesting"
},
{
"start": 2700.4,
"end": 2704.28,
"text": "informative conversations with various leaders in the hotel sector."
},
{
"start": 2704.28,
"end": 2709.16,
"text": "And in his latest episode, he talks with Navin Diamond, chairman and CEO of Stone"
},
{
"start": 2709.16,
"end": 2714.04,
"text": "Bridge Companies, about how Mr. Diamond became an accidental hotelier and what"
},
{
"start": 2714.12,
"end": 2718.48,
"text": "he learned from previous recessions that will help in the current environment."
},
{
"start": 2718.48,
"end": 2722.92,
"text": "Another series of podcasts I've started tuning into is by DLC Management Company,"
},
{
"start": 2722.92,
"end": 2727.08,
"text": "a retail investment and management company out of Elmsford, New York, that has a"
},
{
"start": 2727.08,
"end": 2731.24,
"text": "series called Retail Retold, where they talk mainly with the real estate"
},
{
"start": 2731.24,
"end": 2735.48,
"text": "decision makers of major retail tenants to tell the story of and explore the"
},
{
"start": 2735.48,
"end": 2737.8,
"text": "ins and outs of retail deal making."
},
{
"start": 2737.8,
"end": 2741.2,
"text": "They have done like 40 of these podcasts and they're good."
},
{
"start": 2741.2,
"end": 2746.52,
"text": "The latest is with Adam Williams, partner at Legacy Real Estate Advisors and host of"
},
{
"start": 2746.52,
"end": 2751.64,
"text": "his own show called Retail Redevelop Podcast, and he talks with host Chris"
},
{
"start": 2751.64,
"end": 2755.88,
"text": "Reza about his very first deal and how getting just one deal under your belt"
},
{
"start": 2755.88,
"end": 2758.72,
"text": "can make all the difference when it comes to opening doors and getting"
},
{
"start": 2758.72,
"end": 2762.4,
"text": "unexpected opportunities that can accelerate your career."
},
{
"start": 2762.4,
"end": 2765.84,
"text": "That's a great story for anyone struggling to make a deal happen or who's"
},
{
"start": 2765.84,
"end": 2769.24,
"text": "thinking about leaving the commercial real estate business."
},
{
"start": 2769.24,
"end": 2773.68,
"text": "The next podcast video I recommend watching, and I always recommend these, is"
},
{
"start": 2773.68,
"end": 2778.2,
"text": "the latest installment of Walker Dunlop CEO Willie Walker's weekly Walker"
},
{
"start": 2778.2,
"end": 2783.12,
"text": "Wednesday discussion where Mr. Walker first spends a few must-see minutes"
},
{
"start": 2783.12,
"end": 2786.88,
"text": "discussing the latest in the real estate and financing industry, as well"
},
{
"start": 2786.88,
"end": 2791.28,
"text": "as legislation that's pending, and then has a very high level interview,"
},
{
"start": 2791.28,
"end": 2794.04,
"text": "generally with high level folks in the real estate industry."
},
{
"start": 2794.04,
"end": 2797.64,
"text": "So it's usually related to real estate, but his latest episode, while still"
},
{
"start": 2797.64,
"end": 2802.48,
"text": "very interesting, is more about politics, as his guest was David Ignatius,"
},
{
"start": 2802.48,
"end": 2806.4,
"text": "associate editor and foreign affairs columnist for the Washington Post,"
},
{
"start": 2806.4,
"end": 2809.44,
"text": "who has the pulse of all the major moves being made within the"
},
{
"start": 2809.44,
"end": 2811.96,
"text": "international affairs community."
},
{
"start": 2811.96,
"end": 2815.92,
"text": "Next, as for upcoming webinars and events, on September 14th through"
},
{
"start": 2815.92,
"end": 2819.56,
"text": "September 25th will be Marcus and Millichap's Northern California"
},
{
"start": 2819.56,
"end": 2823.64,
"text": "multifamily forum where they answer the question, which way is up,"
},
{
"start": 2823.64,
"end": 2826.64,
"text": "discussing the challenges and obstacles to the California apartment"
},
{
"start": 2826.64,
"end": 2830.32,
"text": "industry, which have never been greater, but that also means there is"
},
{
"start": 2830.32,
"end": 2832.68,
"text": "hidden opportunity for smart players."
},
{
"start": 2832.68,
"end": 2836.04,
"text": "The reimagined all-digital online conference format they put on in"
},
{
"start": 2836.04,
"end": 2840.72,
"text": "conjunction with Green Pearl spans 10 weekdays from September 14th to"
},
{
"start": 2840.72,
"end": 2845.2,
"text": "the 25th, and it's been organized in brief, easy to consume portions to"
},
{
"start": 2845.2,
"end": 2849.24,
"text": "minimize disruption to your work and personal life with six panels held"
},
{
"start": 2849.24,
"end": 2850.8,
"text": "on separate days."
},
{
"start": 2850.8,
"end": 2854.6,
"text": "So join live to interact directly with the speakers, and they have a ton of"
},
{
"start": 2854.6,
"end": 2859.04,
"text": "speakers through the Q&A feature or view the recordings on your own time."
},
{
"start": 2859.04,
"end": 2862.48,
"text": "Either way, don't miss the limited group networking opportunities that will"
},
{
"start": 2862.48,
"end": 2866.72,
"text": "allow you to connect with your peers directly, forging new connections or"
},
{
"start": 2866.72,
"end": 2868.8,
"text": "re-establishing existing ones."
},
{
"start": 2868.8,
"end": 2872.96,
"text": "The cost is $99 for the live online ticket, but there is a discount code,"
},
{
"start": 2872.96,
"end": 2876.76,
"text": "which is Green Pearl, which will get you a 50% discount."
},
{
"start": 2876.76,
"end": 2881.6,
"text": "The next online event to inform you of is the IMN Distress Hotel"
},
{
"start": 2881.6,
"end": 2884.96,
"text": "virtual forum, taking place on September 15th."
},
{
"start": 2884.96,
"end": 2889.0,
"text": "This full-fledged virtual event will be complete with multiple panel sessions,"
},
{
"start": 2889.0,
"end": 2892.76,
"text": "exhibits, networking, online chatting, meeting rooms, and more."
},
{
"start": 2892.76,
"end": 2896.6,
"text": "Interest has been strong, given the timely nature of this topic,"
},
{
"start": 2896.6,
"end": 2900.8,
"text": "and their recent Distress Hotel webcast had over 1200 registrants."
},
{
"start": 2900.8,
"end": 2904.08,
"text": "There are limited amount of complimented registrations available for"
},
{
"start": 2904.08,
"end": 2905.44,
"text": "this virtual event."
},
{
"start": 2905.44,
"end": 2911.12,
"text": "For more info, go to www.imn.org slash real estate."
},
{
"start": 2911.12,
"end": 2914.16,
"text": "And to update you on a few events that were planned for in-person,"
},
{
"start": 2914.16,
"end": 2917.92,
"text": "given the continued issues with the virus, they are now going all virtual,"
},
{
"start": 2917.92,
"end": 2921.88,
"text": "starting with Globe Streets or RealShares, NetLease conference,"
},
{
"start": 2921.88,
"end": 2925.2,
"text": "which was going to take place at the Marriott Marquee and Times Square."
},
{
"start": 2925.2,
"end": 2929.48,
"text": "But now it is just online on September 17th and October 1st,"
},
{
"start": 2929.48,
"end": 2933.08,
"text": "but the virtual conference will continue to capture face-to-face interactions"
},
{
"start": 2933.08,
"end": 2936.64,
"text": "and superior networking, as well as executive level discussions"
},
{
"start": 2936.64,
"end": 2940.04,
"text": "with the very best in the NetLease sector."
},
{
"start": 2940.04,
"end": 2942.2,
"text": "It will feature live keynote presentations,"
},
{
"start": 2942.2,
"end": 2945.2,
"text": "exclusive access to their speaking faculty,"
},
{
"start": 2945.2,
"end": 2948.64,
"text": "dedicated video networking with their sponsors and deal-makings,"
},
{
"start": 2948.64,
"end": 2952.48,
"text": "access to a library of pre-recorded content, and a lot more."
},
{
"start": 2952.48,
"end": 2955.24,
"text": "They say that nobody is offering a way to connect,"
},
{
"start": 2955.24,
"end": 2957.48,
"text": "like this year's Globe Street,"
},
{
"start": 2957.48,
"end": 2962.0,
"text": "attend for only $99 and register at globestreet.com."
},
{
"start": 2962.0,
"end": 2964.36,
"text": "Also making the decision to cancel the in-person event"
},
{
"start": 2964.36,
"end": 2966.48,
"text": "and go only digital was crittenden,"
},
{
"start": 2966.56,
"end": 2970.6,
"text": "whose Real Estate Finance conference is now being combined"
},
{
"start": 2970.6,
"end": 2972.76,
"text": "with their multifamily conference,"
},
{
"start": 2972.76,
"end": 2975.44,
"text": "and it was scheduled for September 16th through the 18th"
},
{
"start": 2975.44,
"end": 2977.48,
"text": "at the Mandarin Oriental Miami,"
},
{
"start": 2977.48,
"end": 2980.6,
"text": "but now they are both all virtual and the date is moved"
},
{
"start": 2980.6,
"end": 2983.08,
"text": "to October 5th through October 7th."
},
{
"start": 2983.08,
"end": 2985.64,
"text": "Note the date change and the fact it's combined"
},
{
"start": 2985.64,
"end": 2987.32,
"text": "with the multifamily conference."
},
{
"start": 2987.32,
"end": 2990.16,
"text": "Attendees will have access to panel presentations,"
},
{
"start": 2990.16,
"end": 2994.76,
"text": "have opportunities to network online from now their home or office."
},
{
"start": 2994.76,
"end": 2997.52,
"text": "The website for further updates"
},
{
"start": 2997.52,
"end": 3001.8,
"text": "is crittendenrealestatefinance.com."
},
{
"start": 3001.8,
"end": 3003.24,
"text": "And lastly, still holding out hopes"
},
{
"start": 3003.24,
"end": 3005.12,
"text": "for an in-person event this year"
},
{
"start": 3005.12,
"end": 3008.44,
"text": "is Globe Street's 30th annual apartments conference,"
},
{
"start": 3008.44,
"end": 3011.4,
"text": "scheduled for October 27th to 28th"
},
{
"start": 3011.4,
"end": 3012.6,
"text": "at its usual spot,"
},
{
"start": 3012.6,
"end": 3015.16,
"text": "the Western Bonaventure in downtown LA."
},
{
"start": 3015.16,
"end": 3017.04,
"text": "Hopefully it'll be live, and by then,"
},
{
"start": 3017.04,
"end": 3018.76,
"text": "hopefully they'll have their annual gathering"
},
{
"start": 3018.76,
"end": 3021.36,
"text": "with more than a thousand senior level deal-makers"
},
{
"start": 3021.36,
"end": 3023.6,
"text": "through a combination of in-person experiences"
},
{
"start": 3023.6,
"end": 3025.76,
"text": "and virtual touch points."
},
{
"start": 3025.76,
"end": 3027.44,
"text": "Amidst the global health crisis,"
},
{
"start": 3027.44,
"end": 3031.04,
"text": "Globe Street Apartments will present a comprehensive program"
},
{
"start": 3031.04,
"end": 3033.12,
"text": "featuring leading developers, property owners,"
},
{
"start": 3033.12,
"end": 3036.32,
"text": "and operators, and institutional investors."
},
{
"start": 3036.32,
"end": 3037.92,
"text": "And to help celebrate 30 years,"
},
{
"start": 3037.92,
"end": 3039.96,
"text": "2020 will feature their inaugural"
},
{
"start": 3039.96,
"end": 3042.0,
"text": "Globe Street Apartments award dinner,"
},
{
"start": 3042.0,
"end": 3044.08,
"text": "now scheduled October 28th,"
},
{
"start": 3044.08,
"end": 3045.32,
"text": "which will bring together the nation's"
},
{
"start": 3045.32,
"end": 3047.4,
"text": "top multifamily influencers"
},
{
"start": 3047.4,
"end": 3049.96,
"text": "for an evening of celebration."
},
{
"start": 3049.96,
"end": 3054.48,
"text": "Stay tuned for news if that has to go virtual as well."
},
{
"start": 3054.48,
"end": 3056.16,
"text": "And that is it for our show today."
},
{
"start": 3056.16,
"end": 3057.28,
"text": "We hope you enjoyed it,"
},
{
"start": 3057.28,
"end": 3058.88,
"text": "and we appreciate any feedback"
},
{
"start": 3058.88,
"end": 3061.12,
"text": "on any of the products or services"
},
{
"start": 3061.12,
"end": 3063.28,
"text": "or anything else you heard in the show."
},
{
"start": 3063.28,
"end": 3067.96,
"text": "Please email me those comments at sbloom at renttv.com."
},
{
"start": 3067.96,
"end": 3069.56,
"text": "Let me again thank our sponsors,"
},
{
"start": 3069.56,
"end": 3071.2,
"text": "Capitol Rivers Commercial"
},
{
"start": 3071.2,
"end": 3073.56,
"text": "and Redwood Mortgage for their support."
},
{
"start": 3073.56,
"end": 3075.6,
"text": "And until our next podcast,"
},
{
"start": 3075.6,
"end": 3077.96,
"text": "this is Steve Blum from Rent TV,"
},
{
"start": 3078.0,
"end": 3080.56,
"text": "wishing you, your clients and properties"
},
{
"start": 3080.56,
"end": 3082.96,
"text": "strong profits and prosperity."
}
]
}