Would-be commercial real estate investors and sellers for the last several months have been waiting for a sign that the Federal Reserve has tamed inflation, therefore giving the central bank reason to officially end its tightening program. October’s better-than-expected consumer price index increase of 3.2 percent — versus the 3.3 percent consensus — may have delivered that signal. The futures markets immediately reduced the probability of a Fed interest rate hike in December to zero, with many capital markets analysts suggesting that it would begin to cut rates midway through 2024. But just an end to rate hikes could fuel investment sales activity, says Jeff Rinkov, CEO of Lee & Associates Commercial Real Estate Services. “Once investors see some positive sentiment from the Fed, I think they’ll start to get interested in deploying what we believe is an enormous amount of capital that has been waiting on the sidelines,” he explains. “I also think that’s when investors will be met by more accommodating sellers. At the moment, price discovery continues to be very challenging and is driving a sluggish transaction environment.” Crashing Sales Indeed, investment sales volume through three quarters of 2023 totaled $276.3 billion, a year-over-year decline of 55 …
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SALT LAKE CITY — JLL Capital Markets has arranged the sale of and financing for Sandy Commerce Park, a Class A creative office property at 9490 S 300 West in Salt Lake City. Nuveen Real Estate sold the asset to Alturas Capital Partners for an undisclosed price. Completed in 2017, the five-story 121,197-square-foot building features 25,000-square-foot average floorplates, floor-to-ceiling glass curtain walls and 360-degree views of the Wasatch and Oquirrh mountains. At the time of sale, the property was fully leased to eight tenants with an average weighted lease term of 3.7 years. Phil Brierly and Cole Macadaeg of JLL’s investment sales and advisory team represented the seller in the deal. Mark Root and Will Haass of JLL’s debt advisory team secured a five-year, fixed-rate acquisition loan through a life insurance company for the buyer.
NEW YORK CITY — Capalino, a business development consulting firm, has signed an 8,424-square-foot office lease at 730 Third Avenue in Midtown Manhattan. The tenant will occupy the entire 24th floor of the 665,110-square-foot building. David Hoffman, Robert Billingsley and Sam Hoffman of Cushman & Wakefield represented the tenant in the lease negotiations. Nuveen Real Estate owns the building.
ILLINOIS — IWG, a provider of hybrid working solutions with brands such as Spaces and Regus, has unveiled plans to open 21 new coworking spaces across Illinois. The new locations are primarily in metro Chicago. Plans call for 17 Regus locations, four HQ locations and one Signature location. The flexible workspaces will offer private offices, meeting rooms and creative coworking spaces. IWG’s “Design Your Own Office” service will enable companies to tailor their space entirely. IWG operates 4,000 locations in more than 120 countries. The firm predicts that 30 percent of all commercial real estate will be flexible workspace by 2030.
NEW YORK CITY — Law firm Scott + Scott LLP has signed a 21,365-square-foot office lease at 230 Park Avenue in Manhattan. The firm will relocate from a subleased space on the 17th floor to the entire 24th floor next summer. Erik Schmall and Scott Weiss of Savills represented the tenant in the lease negotiations. Scott Klau, Brian Waterman, Erik Harris, Zach Weil and Cole Gendels of Newmark, along with internal agents William Elder, Andrew Ackerman and Walt Rooney, represented the landlord, RXR.
NEW YORK CITY — Wells Fargo & Co. (NYSE: WFC) has announced formal plans to expand its office footprint within Hudson Yards, a mixed-use district on Manhattan’s west side. The San Francisco-based banking giant, which already occupies space within the $25 billion Hudson Yards campus, has purchased additional space from Related Cos., the master developer behind Hudson Yards along with Oxford Properties Group. Multiple media outlets have reported that Wells Fargo purchased the space at 20 Hudson Yards, which formally housed a Neiman Marcus store, for $550 million. The bank plans to convert the 400,000 square feet of space to offices in synergy with its current 500,000-square-foot footprint at 30 Hudson Yards, according to Bloomberg News. Forbes reported that the Neiman Marcus location closed in summer 2020. Wells Fargo plans to begin moving employees from its existing office space at 150 E. 42nd St. to the new Hudson Yards office beginning in late 2026. The property is expected to house 2,300 Wells Fargo employees at full operation. The 11-story building will also include a dedicated entrance on 10th Avenue and naming rights to Wells Fargo for signage on the exterior of the property. “This investment further solidifies our longstanding commitment …
STRASBURG, COLO. — Trevey Commercial Real Estate has arranged the sale of an office and retail property located at 1477 Main St. in Strasburg, a small town approximately 30 miles east of Denver. Maverick Holdings LLC sold the building to Strasburg Management Group for $1.3 million. Situated on 0.2 acres, the freestanding, owner-user building features 7,793 square feet of office and retail space. Heath Honbarrier and Nick Beach of Trevey Commercial Real Estate represented the seller, while Matt Trone of Cushman & Wakefield represented the buyer in the deal.
DENVER — NorthPeak Commercial Advisors has negotiated the sale of an office building located at 1638-1640 Logan St. in Denver. The asset traded for $1.2 million, or $221 per square foot. The undisclosed buyer plans to add a coffee shop to the first floor of the 5,657-square-foot building and keep the existing office tenants on the upper floors. Joe Hornstein and Scott Fetter of NorthPeak Commercial Advisors represented the undisclosed seller in the deal.
PLANO, TEXAS — Cybersecurity firm Intrusion has signed a 10,705-square-foot office lease at Plano Tower, a 225,445-square-foot building located on the northern outskirts of Dallas. The building houses amenities such as a recently upgraded lobby and conference center, as well as a fitness center and a deli. Chris Mathis of Newmark represented the tenant in the lease negotiations. Boxer Property Group owns the building.
NEW YORK CITY — IMA New York, a division of insurance brokerage firm IMA Financial Group, has signed a 10,000-square-foot office lease at 1155 Avenue of the Americas in Midtown Manhattan. The lease term is 10 years. The tenant will occupy space on the 33rd floor of the 42-story building. Howard Hersch and Brett Harvey of JLL represented the tenant in the lease negotiations. Tom Bow, Rocco Romeo and Nora Caliban internally represented the landlord, The Durst Organization, which recently completed a $130 million capital improvement program at the property.