Author Topic: the death of the urban office building  (Read 25055 times)

thepupil

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Re: the death of the urban office building
« Reply #180 on: October 15, 2020, 04:58:33 PM »
https://apple.news/Ao4o1b-pmQMa7isBWMWSXpw

Morningstar likes office...but thinks VNO is more
Levered than SLG, loses all credibility.


CorpRaider

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Re: the death of the urban office building
« Reply #181 on: October 15, 2020, 07:48:08 PM »
Haha. They are just citing the MRQ total debt to ebitda.  They both have ~55% TL/TA.  Lazy balance sheets.  SLG is weird because it has like a mini merchant bank on the BS (should be levered like 5/1 LFG).  They seem to be harping on the VNO retail exposure. 

The most troubling thing to me is that they are actually a fan company (did we already exhaust that joke <groan>)?.
« Last Edit: October 16, 2020, 05:59:23 AM by CorpRaider »

Gregmal

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Re: the death of the urban office building
« Reply #182 on: October 17, 2020, 12:59:40 PM »
Apparently not all types of office, city or not is struggling. Pretty incredible gain(all things considered) on a 4 year investment given the backdrop of everything else. ARE continues to look pretty damn good.

https://therealdeal.com/2020/10/16/blackstone-bets-big-on-life-science-buildings-with-14-6b-deal/

fareastwarriors

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Re: the death of the urban office building
« Reply #183 on: October 17, 2020, 01:08:48 PM »
Apparently not all types of office, city or not is struggling. Pretty incredible gain(all things considered) on a 4 year investment given the backdrop of everything else. ARE continues to look pretty damn good.

https://therealdeal.com/2020/10/16/blackstone-bets-big-on-life-science-buildings-with-14-6b-deal/

Life science properties look good. Ventas sprinkled a cool billion of coin across the Bay from me.


https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/ventas-to-buy-3-south-san-francisco-buildings-for-1b-60429754


The class A properties include the 721,000-square-foot Genesis Towers complex at One & Two Tower Place, and the 72,000-square foot four-story building at 4000 Shoreline Court.

The buildings comprising a mix of office and laboratory space are being sold by Bain Capital Pvt. Equity LP and investment firm Phase 3 Real Estate Partners Inc., according to the report. Eastdil Secure represents the sellers.

The Chicago-based healthcare real estate investment trust will receive a $415 million 10-year loan from Citigroup and JPMorgan for the transaction. Citigroup will reportedly provide 70% of the mortgage.

thepupil

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Re: the death of the urban office building
« Reply #184 on: October 19, 2020, 06:29:07 AM »
Quote
Office REITs Cut at Evercore ISI With Workers Slow to Return
By Felice Maranz
(Bloomberg) -- The slow pace of workers returning to offices and high levels of new supply are “just too much” for the office REIT sector to deal with, Evercore ISI’s Steve Sakwa wrote in a note downgrading Boston Properties, Kilroy, Paramount and Vornado.
Sakwa sees vacancy rates soaring to more 17% from 13.8% to by the end of 2021, as an additional 75m sf of space is delivered, while demand stays negative
That means office stocks will stay under pressure, with investors likely to shun the sector until there’s a “clear path to occupancy recovering and pricing power stabilizing”
Cut PTs by avg. 5%; lowered BXP, KRC, PGRE to in-line from outperform and VNO to underperform from in line
Keeps top picks Alexandria, which is “focused on the life science sector where work from home is much less of a threat,” and Corporate Office, which focuses on U.S. government and defense contractors, who are generally not able to work from home
BXP fell 0.5% in premarket trading on Monday
NOTE: Earlier, Urban Office REITs Face Leasing Risks Amid Strong Collections: Bloomberg IntelligenceRelated tickers:

fareastwarriors

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Re: the death of the urban office building
« Reply #185 on: October 27, 2020, 02:13:06 PM »
Can't be positive for high cost and high tax cities and states...


https://redditblog.com/2020/10/27/evolving-reddits-workforce/

What about employee compensation?
To help drive the idea home (pun intended), we’ve reimagined our approach to compensation in the US. To support employees to live where they want to and do their best work, we are eliminating geographic compensation zones in the US. It means that our US compensation will be tied to pay ranges of high-cost areas such as SF and NY, regardless of where employees live. We believe this is the right balance of flexibility and support for employees, recognizing the varied tradeoffs people consider when deciding where to live. Internationally, we have had one pay range per country, and now the US will be consistent with this approach.

fareastwarriors

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Re: the death of the urban office building
« Reply #186 on: October 27, 2020, 03:23:37 PM »
In a Battered New York Office Market, Life Science Is Flourishing

With state and city government support, developers are building laboratories for medical research and incubator spaces for biotech start-ups amid the race for a coronavirus vaccine.

https://www.nytimes.com/2020/10/27/business/life-science-new-york-coronavirus.html