The week in global real estate - 6 July 2020

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A weekly update of the biggest real estate news from around the globe.

Institutional investors / REITs

  • Simon Property Group has temporarily cut its dividend by 38% following the loss of rent across its retail properties. The quarterly dividend had been cut from US$2.10 to US$1.30 per share. More info here.
  • Sembcorp Industries has formed a joint venture with Japanese property firm CRE Asia to expand its warehousing portfolio in Vietnam. More info here.
  • Innovative Industrial Properties Inc has raised $225M for further investment in property. The REIT is focused on investment in property used for regulated production of cannabis. More info here.

Office

  • The refurbishment of the Seagram Building in New York will include a 3,250sqm underground playground in space previously used for car parking. The playground will include a climbing wall, basketball courts, spinning studios, indoor track and retractable stadium type seating for 200 people capable of holding meetings. More info here.
  • WeWork are closing their first-ever co-working location in Soho at the end of July. This coincides with the end of their ten-year lease. More info here.
  • Berkeley City Council in greater San Francisco has amended legislation to allow tenants to exit leases easily due to COVID-19 impacts. Tenants who have had unforeseen material loss of income can exit leases with 30-days’ notice. More info here.
  • Dating website owner Match.com has leased 4,200sqm of space in New York’s Meatpacking District. The lease is worth an estimated US$5.4M annually. More info here.

Retail

  • Microsoft announced it will be permanently closing 83 physical retail stores. Remaining centres in New York, Washington, London and Sydney will be redesigned as experience centres. More info here.
  • Only 13.8% of rent payable by retailers has been collected for the latest quarter's rent payments in the United Kingdom. This is down from 19.8% of rent collected for the prior quarter. More info here.

Industrial

  • Goodman Group has finished construction of a 110,000 sqm facility in Los Angeles. The centre is part tenanted by Japanese distributor, Mutual Trading Co. The building has a LEED-certified building shell. More info here.

Housing

  • Initial planning permissions have been gained for a 351-unit build-to-rent development on a 1.1ha site in Redfern, Sydney. The project is using state-owned land, and will be the first government-backed build-to-rent development in Australia. More info here.
  • Developers in some commercial districts in Vancouver will be able to build taller and denser developments if they build rental-only housing for the residential component of the development. More info here.

Specialist

  • Redevelopment of the 607 hectare former Athens Airport in Greece has begun. The coastal site will be redeveloped into luxury homes, hotels, offices a marina and casino at a cost of more than €8B. More info here.

Related Experts

Chris Farhi

Director | Strategic Advisory

Auckland CBD

Chris is a Director within the Strategic Advisory team. The team helps you with your big property decisions and complex transactions.

Chris' advisory work focuses on:

  • Decision making processes (eg property strategy, business cases, feasibilities, etc)
  • Tenant representation for large lease transactions (office,  industrial and specialist-use)
  • Multi-site networks (eg consolidation strategies, optimisation, etc)

Chris’ background in brief:

  • Property strategy advisor for some of New Zealand’s most successful private sector, public sector and non-for-profit organisations.
  • Tenant representative (tenant-paid lease negotiator) for organisations ranging from small-to-medium enterprises through to major listed companies and government agencies.
  • Specialist skills in commercial leasing, financial analysis and market research.
  • Part-time lecturer at the University of Auckland Business School and commercial leasing trainer for the Royal Institution of Chartered Surveyors.

Chris’ qualifications include Honours degrees in both Civil Engineering and Property from the University of Auckland, and a Master of Philosophy from the University of Cambridge, UK. He is a Chartered Member of the Royal Institution of Chartered Surveyors.

Outside of work, Chris is a combat engineer in the NZ Army Reserve and a keen baker.

View expert

William Silk

Analyst | Stategic Advisory

Auckland CBD

William joined the Strategic Advisory team as an Analyst  in the Auckland CBD office in 2019, after completing studies at The University of Auckland. 

Specialising in reseasrch, reporting and analysis to support strategic commercial proprety decision making. 

View expert