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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 projects in Brooklyn all seem to be great highlights. 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 failure has already cost investors billions of dollars. Softbank alone has had to write off $5B already, and even deeper cuts are likely to come as it unravels. Unfortunately, the company with great aspirations just got too big too fast and maybe a victim of its own success and lack of a sustainable business model. This sadly doesn’t bode well for others in this space like Airbnb. Of course, its CEO Adam Neuman is still making out quite well from the deal. His termination package includes getting paid $1.7B to walk away, in addition to the $700M in stock he recently cashes out. Real estate tech still continues to attract substantial investments. Appraisal startup Bowery Valuation just pulled in $8M in funding from Lightstone. Billionaire real estate investor Sam Zell who recently predicted WeWork’s collapse now says new rent control laws are having a chilling effect on property development. Blackstone just turned a $7B profit on the portfolio of office properties they bought from Sam Zell for $39B back in 2007. An amazing feat considering the intense crash that followed their historic record-setting purchase. Still, the Real Deal reports that construction spending is expected to hit $190B within the next 24 months. However, even with continued growth, construction job growth is expected to peak within the next year, especially with new technologies that are replacing workers. BisNow says that the game has officially changed for NYC landlords. Instead of it all being about location, location, location, success is now all about the product, product, product. It’s all about making the upgrades to compete with new construction. If you aren’t bringing your properties up to date leasing will be slow and rents will be low. One of the hottest emerging spaces in commercial real estate leasing today is for film studios. At least for now, all the major media companies are vying for space to produce their own streaming content. We’ve seen Robert De Niro fund new studio spaces and Netflix on a land grab. Apple TV reportedly has $6B to fund original content production. Eventually, we will probably see a major roll up and consolidation in this space as viewers get tired of paying for multiple streaming services. For now, landlords see these long leases from national credit tenants as a great thing. In other news, NY has lost its lawsuit to repeal new SALT tax deduction caps. Along with NJ, MD and CT, NY saw its lawsuit shot down by a NY federal judge at the end of S...
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