David Bitner News Today

U.S. office rents are holding steady—or even climbing—despite soaring vacancy rates, a record amount of available sublease space, and rising defaults.

As several $1 billion funds are raised to invest in distressed office, here’s a look at why capital is now flocking there.

Several restaurant leases were inked last week in Miami, but it was also a pretty good week for financing despite some bad numbers.

Mid-month we learned that the guys behind Dante’s HiFi, the popular Wynwood bar, were taking over Navé in Coconut Grove. Then, last Tuesday, we heard that Rocco’s Tacos was renewing its 4,800-square-foot taqueria space at 224 Clematis Street in West Palm Beach. While retail has by and large been keeping its head down and trying not to be talked about too much, discount grocery stores are having a moment.

Defaults on properties such as offices and apartment buildings may increase as property values fall and costs rise for landlords who need to refinance at higher interest rates.

A second quarter 2023 U.S. capital markets report from Newmark found CRE debt origination volumes have declined 52 percent year-over-year,

If the headlines hinted at struggles in commercial real estate, then just wait until you see the data. A second quarter 2023 U.S. capital markets report from Newmark (NMRK) found CRE debt origination volumes have declined by 52 percent year-over-year, and that the current market has 32 percent fewer lenders than it did at this time last year.

Offices are the biggest problem, accounting for more than half of the $626 billion of at-risk debt that matures by 2025's end.

NEW YORK – In New York and London, owners of gleaming office towers are walking away from their debt rather than pouring good money after bad. The landlords of downtown San Francisco’s largest mall have abandoned it. A new Hong Kong skyscraper is only a quarter leased. Read more at straitstimes.com.

Hundreds of billions of proverbial dry powder are poised to enter the financing market. Here’s how and where Private Equity will act.