Editors’ Weekly News Round Up February 12 – February 16

The months-long stream of dismal headlines regarding the office sector was interrupted this past week by a positive report from VTS which found that occupiers are figuring out what to do long-term. Specifically, they’re moving in the direction of reinstating office space as the focal point of their companies’ operations. 

Office Re-Emerges as Primary Workplacewas the most-read Connect CRE story for the week ending Feb. 17. Among other results from a global survey, the story reported that 59% of office occupiers are currently mandating or encouraging their employees to spend more time in-office, with 55% planning to move in this direction over the next six months. 

That being the case, the past week’s second-most-read story sounded a theme that has become unfortunately familiar to industry members: the liability that a thick book of commercial real estate business may represent for regional banks. As reported in Feds Weigh Greater Scrutiny of Regional Banks with High CRE Exposure, three federal regulatory agencies served notice recently that they would pay closer attention to banks that had increased their CRE loan volume by at least 50% over the past three years. 

The story also cited coverage from Reuters on the wary eye that investors have turned to regional banks with CRE holdings as a proportion of total risk-based capital above 300%. That includes New York Community Bancorp, which recently reported losses stemming from CRE loans, to the detriment of its stock price and credit rating.  

Last week also saw a story on investment sales powerhouse Bob Knakal and his departure from JLL. Although Knakal’s focus since the 1980s has been on New York City and its metro area, JLL, Bob Knakal Part Ways After Six Yearsresonated with readers both in New York and nationwide as our third-most-read story overall. 

A trio of in-house leaders at Walker & Dunlop appeared on the Walker Webcast this past week, providing their take on the current state of the rental housing sector (including single-family rentals along with apartments), investment sales and the capital markets environment across the U.S. The frank assessments they provided helped to make Walker Webcast: Ivy Zelman, Kris Mikkelsen and Aaron Appel on the 2024 Outlookour fourth-most-read story last week. 

Another regional story with national appeal rounded out the top five. The California Apartment Association (CAA) claimed victory in helping to keep a bill to broaden the scope of the state’s rent-control guidelines from moving forward. We reported this victory in Bill to Expand California Rent Control is a Nonstarter. However, the CAA also warned that another, even broader measure has qualified to appear on the statewide ballot this coming November. 

Connect CRE has a pair of sibling news and content platforms that have been introduced over the past year and a half: Connect Money and, most recently, Connect CRE Canada. Recently, we have begun cross-platform story placement, with each of the three platforms featuring coverage from the other two on a weekly basis. We encourage Connect CRE readers to use these featured stories as springboards for investigating our other offerings. 

The months-long stream of dismal headlines regarding the office sector was interrupted this past week by a positive report from VTS which found that occupiers are figuring out what to do long-term. Specifically, they’re moving in the direction of reinstating office space as the focal point of their companies’ operations. 

Office Re-Emerges as Primary Workplacewas the most-read Connect CRE story for the week ending Feb. 17. Among other results from a global survey, the story reported that 59% of office occupiers are currently mandating or encouraging their employees to spend more time in-office, with 55% planning to move in this direction over the next six months. 

That being the case, the past week’s second-most-read story sounded a theme that has become unfortunately familiar to industry members: the liability that a thick book of commercial real estate business may represent for regional banks. As reported in Feds Weigh Greater Scrutiny of Regional Banks with High CRE Exposure, three federal regulatory agencies served notice recently that they would pay closer attention to banks that had increased their CRE loan volume by at least 50% over the past three years. 

The story also cited coverage from Reuters on the wary eye that investors have turned to regional banks with CRE holdings as a proportion of total risk-based capital above 300%. That includes New York Community Bancorp, which recently reported losses stemming from CRE loans, to the detriment of its stock price and credit rating.  

Last week also saw a story on investment sales powerhouse Bob Knakal and his departure from JLL. Although Knakal’s focus since the 1980s has been on New York City and its metro area, JLL, Bob Knakal Part Ways After Six Yearsresonated with readers both in New York and nationwide as our third-most-read story overall. 

A trio of in-house leaders at Walker & Dunlop appeared on the Walker Webcast this past week, providing their take on the current state of the rental housing sector (including single-family rentals along with apartments), investment sales and the capital markets environment across the U.S. The frank assessments they provided helped to make Walker Webcast: Ivy Zelman, Kris Mikkelsen and Aaron Appel on the 2024 Outlookour fourth-most-read story last week. 

Another regional story with national appeal rounded out the top five. The California Apartment Association (CAA) claimed victory in helping to keep a bill to broaden the scope of the state’s rent-control guidelines from moving forward. We reported this victory in Bill to Expand California Rent Control is a Nonstarter. However, the CAA also warned that another, even broader measure has qualified to appear on the statewide ballot this coming November. 

Connect CRE has a pair of sibling news and content platforms that have been introduced over the past year and a half: Connect Money and, most recently, Connect CRE Canada. Recently, we have begun cross-platform story placement, with each of the three platforms featuring coverage from the other two on a weekly basis. We encourage Connect CRE readers to use these featured stories as springboards for investigating our other offerings. 

The months-long stream of dismal headlines regarding the office sector was interrupted this past week by a positive report from VTS which found that occupiers are figuring out what to do long-term. Specifically, they’re moving in the direction of reinstating office space as the focal point of their companies’ operations. 

Office Re-Emerges as Primary Workplacewas the most-read Connect CRE story for the week ending Feb. 17. Among other results from a global survey, the story reported that 59% of office occupiers are currently mandating or encouraging their employees to spend more time in-office, with 55% planning to move in this direction over the next six months. 

That being the case, the past week’s second-most-read story sounded a theme that has become unfortunately familiar to industry members: the liability that a thick book of commercial real estate business may represent for regional banks. As reported in Feds Weigh Greater Scrutiny of Regional Banks with High CRE Exposure, three federal regulatory agencies served notice recently that they would pay closer attention to banks that had increased their CRE loan volume by at least 50% over the past three years. 

The story also cited coverage from Reuters on the wary eye that investors have turned to regional banks with CRE holdings as a proportion of total risk-based capital above 300%. That includes New York Community Bancorp, which recently reported losses stemming from CRE loans, to the detriment of its stock price and credit rating.  

Last week also saw a story on investment sales powerhouse Bob Knakal and his departure from JLL. Although Knakal’s focus since the 1980s has been on New York City and its metro area, JLL, Bob Knakal Part Ways After Six Yearsresonated with readers both in New York and nationwide as our third-most-read story overall. 

A trio of in-house leaders at Walker & Dunlop appeared on the Walker Webcast this past week, providing their take on the current state of the rental housing sector (including single-family rentals along with apartments), investment sales and the capital markets environment across the U.S. The frank assessments they provided helped to make Walker Webcast: Ivy Zelman, Kris Mikkelsen and Aaron Appel on the 2024 Outlookour fourth-most-read story last week. 

Another regional story with national appeal rounded out the top five. The California Apartment Association (CAA) claimed victory in helping to keep a bill to broaden the scope of the state’s rent-control guidelines from moving forward. We reported this victory in Bill to Expand California Rent Control is a Nonstarter. However, the CAA also warned that another, even broader measure has qualified to appear on the statewide ballot this coming November. 

Connect CRE has a pair of sibling news and content platforms that have been introduced over the past year and a half: Connect Money and, most recently, Connect CRE Canada. Recently, we have begun cross-platform story placement, with each of the three platforms featuring coverage from the other two on a weekly basis. We encourage Connect CRE readers to use these featured stories as springboards for investigating our other offerings.