Editors’ Weekly News Roundup April 28 – May 2
Arguably the sector that was hardest hit by the pandemic and the slowest to recover, office has been more visible on commercial real estate radar screens lately. As a case in point, the three most-read Connect CRE stories this past week all deal with office—and in a more positive way than the headlines of two or three years ago would have led one to believe.
Our Washington, DC & Mid-Atlantic readers learned via Law Firm to Relocate Washington Office to Bethesda that Miles & Stockbridge was pulling up stakes in Rockville, MD for Federal Realty’s Pike & Rose mixed-use development elsewhere in Montgomery County. The story ranked at the top of the week’s roster of most-read stories.
Following a merger with real estate finance firm Krooth & Altman, about half of Miles & Stockbridge’s attorneys “now work in the DC metro area,” explained Nancy Greene, chairman, president and CEO. “Opening a North Bethesda office is a great extension of our presence and commitment to clients across the DMV.”
The week’s second most-read story also involved a relocation to a mixed-use community, albeit on a much larger scale. Deloitte Commits to 800K SF at Hudson Yards, a breaking news report, informed readers that the accounting giant would occupy most of the square footage at a yet-to-be-built tower in Related Companies’ mega-development on Manhattan’s Far West Side.
Given that Related isn’t expected to begin construction on what will be 70 Hudson Yards until June, the Deloitte commitment represents a notable example of pre-leasing. That’s an aspect of office development that hasn’t seen much daylight since before the pandemic.
Moving from the East Coast to the Midwest, the past week’s third most-read story also focused on office, this time as an investment sale. An undisclosed Chicago investor bought a suburban property and hired CBRE for lease-up, we reported in Chicago Investor Buys Oak Brook Office Building. The 214,000-square-foot building brings the investor’s national portfolio to 1.5 million square feet.
The Mortage Bankers Association reported late last month that CRE mortgage volume increased year-over-year in 2024, in a reversal of the decline that was seen in 2023. Our fourth most-read story for the week, CRE Mortgage Lending Rose 16% in 2024, Says MBA put the total volume at just under $500 billion.
That figure still represents a 39% drop from the tally of $816 billion in 2022. Nonetheless, the MBA’s Reggie Booker noted that it demonstrates “renewed momentum.”
Completing the top five was another sale transaction to an undisclosed buyer, this one on the West Coast. This time, the property type was retail.
A Hanley Investment Group Real Estate Advisors team arranged the sale reported in OC Grocery Operator Acquires Value-Add Mission Viejo Center. The new owner of the Southern California property will also backfill a vacant Orchard Supply Hardware location.
Connect CRE’s sister website, Connect Money, recently introduced a weekly column by editorial director Joe Palmisano. Titled “Treasury & Rates,” it sorts out the movements, drivers and implication of 10-year Treasury yields. You can read the current edition here and previous columns here.