- Offices, hotels, and malls were emptied by the coronavirus. Even as they reopen, the disruption has many thinking we’re looking at a new normal for how we occupy space.
- Big firms are rethinking office needs — and some commercial real-estate deals are being put on ice as financing dries up.
- A surge in e-commerce, meanwhile, is fueling demand for warehouse and cold-storage space from companies like Amazon.
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The coronavirus threw the real-estate world into disarray, as people emptied out of offices, hotels, and malls and worked from their homes. The disruption is transforming how people and companies finance, operate, and occupy real estate.
Big firms are rethinking office needs — and some commercial real-estate deals are being put on ice as financing dries up. Coworking and flex-office firms are struggling under big rent obligations after years of rapid growth. A surge in e-commerce, meanwhile, is fueling demand for warehouse and cold storage space as companies look for new ways to reach customers.
Here’s the latest news on how commercial and residential real estate is being upended, and how experts think these markets will play out in the long run.
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Here’s everything we know right now:
Latest news and deals
- Facebook just reached a blockbuster deal to lease the massive Farley Building in NYC as a tech and engineering hub. Here’s why it’s a huge win for a shaken office market.
- Ghost kitchens are pitching themselves as the future of restaurants. These are the 14 companies — and the money backing them — that you need to know.
- JCPenney has hired brokers to sell off 163 locations across the US as the department-store chain slashes its footprint and tries to emerge from bankruptcy
- SL Green is looking to sell a $1.1 billion Amazon-anchored building to buy back its shares. Here’s a look at its strategy to defend its share price as the office market tanks.
- IBM is on the hunt for a massive Manhattan space, showing that worries about the death of the big-city office may be overblown
- WeWork is turning to big brokerages like CBRE and JLL to help it find customers. It’s a huge strategy shift that shows how hard office space is to fill right now.
- Neiman Marcus’ shocking exit from glitzy Hudson Yards strikes a huge blow to the $25 billion project. The departure could unravel one of the most expensive mega-malls in US history.
- Real estate developers are building costly cold storage space before they even have tenants. They’re betting the risky move could be a winning investment as grocery delivery booms.
- Wall Street analysts are predicting an earnings bloodbath for real-estate giants like CBRE and Cushman & Wakefield, with a Great Recession-sized hit packed into just a few months
- WeWork rival Knotel just told staff it’s looking to raise $100 million as it faces a turbulent office market and a host of unpaid bills
- How commercial real-estate giant JLL is revamping its trainee program to help early-career brokers land deals virtually and navigate big disruptions in the market
- A growing group of lenders are looking to unload hundreds of millions of dollars of souring hotel loans. Teams hired to sell the portfolios say it’s just the beginning of a surge in activity.