Introducing the Power 100 for 2022! – Trade Observer
Hot enough for you? Seriously, though, springtime heat is usually a harbinger of Commercial Observer power season. Fresh off our Power Finance list two weeks ago, CO now presents its Power 100, our annual ranking of the 100 most important people in commercial real estate, which we dropped last week.
In a move that wouldn’t surprise anyone who reads the news, Ken Caplan and Kathleen McCarthy of Blackstone once again claimed the top spot. And it’s pretty clear why from a small handful of company activities over the past year: the $6 billion acquisition of Extended Stay America (with Starwood Capital Group); the $3.1 billion purchase of WPT Industrial Real Estate Investment Trust; and, on the multifamily side, the $3.7 billion purchase of Resource REIT and the $3.6 billion purchase of Bluerock Residential Growth REIT, to name a few.
So it seemed like a fight for second place, and SL Green Realty came out on top. There’s 1 Vanderbilt, which opened amid the pandemic and is 97% leased; locking IBM as anchor tenant of 328,000 square feet at 1 Madison Avenue; and SL Green acquires its first office building since 2018 with the $445 million purchase of 450 Park Avenue.
It’s worth digging beyond the top 10 (or just trying to find where you landed on the list) to learn more about the awesome work others have done over the past year.
Industrial has been de rigueur for real estate during the pandemic. That continued last year, with the CEO of the country’s largest industrial asset owner, Prologis, rising from No.18 to fifth.
Politicians also returned to the list this year with Governor Kathy Hochul (#6) and Adams (#33) setting a much friendlier tone for the real estate community (so it’s no surprise that many real estate professionals real estate entered politics in 2021).
And one thing has remained clear speaking to people for the Power 100 list, and that is that Class A office space has been a commercial real estate winner during the pandemic.
“So if you think about the tenants of the future in New York, what will they want? They’ll want open space, they’ll want amenities, they’ll want that intersection between the historic and the 21st century,” said Robert Lapidus, CEO of L&L Holding, during an interview for the Power 100.
Still with COVID
In the sentences we hoped we were done typing, COVID-19 cases began to steadily increase in New York and much of the country, largely due to omicron variants.
New York has started recording 4,000 new cases a day — but that number is likely higher because it doesn’t account for home testing — and nearly 800 people are currently hospitalized with COVID-19, according to city data. and the state.
New York City’s COVID risk level has been moved to “high” by authorities, and people are recommended to mask up again in indoor settings. Despite the surge in numbers, Mayor Eric Adams said he doesn’t expect to bring back any warrants until “there comes a time when our hospitals are in a state of emergency, or we tend to do it, and my doctors who run the hospitals tell me that’s what we have to do,” according to The New York Times.
But that hasn’t stopped some companies from delaying their long-awaited return-to-office plans. Apple told employees that for “the time being” it would suspend the requirement for workers to come to the office three days a week, which was due to begin May 23, due to the increase in COVID cases, a reported Bloomberg. He still plans to ask employees to come back two days a week.
Adams’ reluctance to bring back COVID mandates could earn him mixed ratings, but his other comments this week are sure to win him even more real estate friends.
The swaggalicious mayor slammed the New York City Buildings Department in front of a crowd of real estate members during a The real deal event and said the DOB should “roll out the red carpet” for developers.
“You would think we were doing something wrong by wanting to build in our city,” Adams told the crowd. While Adams could seemingly portray himself as the Bizarro de Blasio to the real estate industry, the city might not be done with de Blasio prime. The former mayor announced Friday that he plans to run for Congress in the newly redesigned 10th Ward that includes Lower Manhattan and parts of Brooklyn such as Dumbo, Prospect Heights and the Park Slope de Blasio neighborhood.
And now for a few offers
Brookfield Properties landed its first lease in the 660 Fifth Avenue office tower it is redeveloping after taking it over from Kushner Companies in 2018, with financial services firm Macquarie Group locked in for 221,764 square feet.
But Rudin Management and Boston Properties weren’t so lucky with their Dock 72 project in the Brooklyn Navy Yard. After speculation that Vice Media Group would abandon its offices in Williamsburg, Brooklyn, for Dock 72, the company instead signed a four-year renewal for its 77,700 square feet at 289 Kent Avenue.
Industrial strength continued with Link Logisitcs picking up a Bronx warehouse for $75 million and EverWest Real Estate Investors picking up an industrial warehouse in New Jersey for $65 million.
Meanwhile, CBRE doubled its flexible office space by investing an additional $100 million in Industrious, while Cushman & Wakefield acquired Cresa Partners’ three-office team of Los Angeles.
Dig into longer stories
What better way to spend a lazy Sunday than catching up on some of CO’s longer features?
This week, we looked at the luxury development boom in Miami’s Edgewater neighborhood, which has accelerated dramatically over the past five years.
And in less positive news, we looked at how venture capitalists have started to cut their funding to tech startups and why that might be bad for office leasing, as these companies have been driving leasing lately.
Until next week!