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Episode Info: Welcome to the newest New York Real Estate Update from Brooklyn Made. This month’s roundup shows a New York City real estate market that just keeps marching on. It’s redeveloping and upgrading every day. New condo prices, the completion of new megaprojects in Brooklyn and office leasing all seem to be great highlights. While there are still many units that will need to be absorbed into the market, transactions seem to show continued confidence in this strong market as the status quo for the foreseeable future. Keep listening to get the scoop on all of this, the most notable news this month and what it means for landlords and investors.   In the commercial real estate headlines…   WeWork’s IPO is probably the biggest news this month. The office giant has pushed ahead with getting listed on the NASDAQ despite quite vocal detractors, including millionaire commercial real estate investor Sam Zell and WeWork’s own lead investor Softbank. WeWork’s valuation has plummeted by more than 50%, from $47B to around $20B. The company is reportedly zoned in ongoing public to raise another $10B. While many are concerned that not only is the company on shaky ground, but presents a major threat to office markets in NYC and London.  It is one of the largest office landlords in the world. Yet, has a dangerous business model, which left it losing almost $1B in the first half of 2019, on $1.5B in revenues. Many worry that it is unsustainable and could drag down both the real estate market and the stock market with it. Billionaire investor and deal maker Carl Ichan is the latest notable New Yorker to make the move to South Florida, along with his company. Part of a much larger migration of businesses and wealthy individuals who have been fleeing NY’s extreme taxes, including property taxes. Ichan has offered his employees $50,000 each to help with their move, if they set up residency in Florida as well.  The industry thought it dodge the pied-a-terre tax with the last budget. With the effects of new rent controls still stinging, a renewed effort to tax real estate in NY even further is lemon juice on fresh wounds. Many are not happy about it. Many are frustrated that lawmakers just don’t see how damaging taxation and rent controls already are. We’ll have to see how this battle plays out. Despite being another big IPO that has been losing a lot of money, Uber has continued to spend big on New York real estate. Following its lease at Hudson Yards in the first quarter, the ride sharing company reportedly just signed a much larger lease at 3 World Trade. The latest figures show New York companies are spending over $1B a year on office space. A figure expected to rise by another $100M a year by 2020. Rents are up 40% since 2014, and demand may continue to keep them strong. While we recently covered the fact that a slow down in building permits and deliveries should bring balance to the market in the next few years, data suggests 25% of condo ...
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