In case you missed it: Household formations rise, tech sector boosts CRE, and Four Seasons Hotel New York sees offer
Nov 9, 2012
Both the presidential election and the continuing struggle to help the mid-Atlantic region recover from Hurricane Sandy dominated the news cycle this week. We gathered four commercial real estate stories that might have slipped through the cracks. Take a few minutes to catch up on what you might have missed.
The Real Deal: “Four Seasons Hotel New York Sees $900M Offer”
Billionaire Ty Warner — most famous for Beanie Babies — has received a $900 million offer for his Four Seasons Hotel in New York. Now the Four Seasons is deciding if it will match the offer. If Warner sells the hotel, it would be one of the biggest hotel sales in Manhattan history ($2.4 million per room). Visit the Real Deal for the full scoop.
Puget Sound Business Journal: “Microsoft Bing HQ in Downtown Bellevue Sells for 21% More Than Two Years Ago”
Cole Real Estate Investments has sold City Center Plaza, the downtown Bellevue headquarters for Microsoft Bing, to an affiliate of CommonWealth Partners for $374.7 million. That’s 21 percent higher than what Cole paid for the building in the summer of 2010, indicating the strength of the office market in the area. 2010 was a tough year for real estate deals and long term rates have settled at historic low levels. The result is record high prices. Flip over to Puget Sound Business Journal for more information on the sale of City Center Plaza.
The Wall Street Journal: “New Households Sprouting Up”
Confident consumers are taking steps to rent or buy homes at the fastest rate in more than six years. According to the most recent Census Bureau data, 1.15 million households were formed in the past year, significantly more than we’ve seen in the past four years. As for new housing starts, the Commerce Department reported that builders started to work on homes at an annual rate of 872,000 units in October. Head over to the Wall Street Journal to find out if consumers have put recession-era fears at ease.
Atlanta Business Chronicle: “Tech Sector Boosts Commercial Real Estate Recovery”
Employment gains in the technology services sector have boosted demand for office space in metro regions, including Atlanta. With the 10th largest tech sector in the U.S., Atlanta is adding tech jobs at a 9.6 percent annual rate. Several business incubator programs and institutions have added to the sector’s growth. Read the full article over at Atlanta Business Chronicle for insight into the major tech-sector leasing activity in 2011 and 2012.
Author: Raymond T. Cirz