- November 14, 2019
Ten-X Strategic Insights is distilling the highlights from the week into a weekly digest aimed at picking out the key trends and developments changing the real estate market landscape.
A new Ten-X blog takes a look at the current state of the Industrial market and its positioning heading into the second half of the year. For a more in-depth look and regional analysis, please reach out for the full Industrial Quarterly Report.
IN THE CITY
Facebook signed a lease for 1.5 million square feet in the Hudson Yards development on Manhattan’s west side. The lease is for 30 floors across three different buildings with the company slated to move in 2020.
JP Morgan is demolishing and then rebuilding a new headquarters on Park Avenue and the ongoing construction has resulted in a neighboring building, 415 Madison, to seek permits to tear down and rebuild its tower with the goal of connecting the new building to a Long Island Rail Road concourse that will be part of Grand Central.
Meanwhile, on the residential side, apartment rent growth is tepid. Affordability is strained with high current rent levels, and as home sale price growth continues to cool, many would-be renters are now on the fence with respect to purchasing.
WeWork was banking heavily on a cash infusion from its IPO in the third quarter, as the company lost $1.3 billion in the quarter, double the loss from the same period a year ago despite revenue nearly doubling to $934 million. The ensuing debacle has resulted in job cuts and asset sales in order to bring the company on a path towards profitability.
BRICKS AND STICKS
Amazon continues to push into the grocery segment, as the company confirmed it plans to open its first non-Whole Foods grocery store next year in Los Angeles.The parent company of Sears and Kmart will close another 96 stores across the US by February 2020, leaving the business with 182 remaining locations. Sears’ protracted downfall has been emblematic of the broader retail sector’s struggles, which show no sign of letting up.