Industrial Leasing Stalls as Tenants Shift Strategies

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Good morning. Good morning! Industrial leasing is hitting a snag—only 30% of deals are closing as tenants rethink logistics strategies amid economic uncertainty.

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• Office comeback: Floyd Mayweather Jr. has invested in 601W Companies’ $10B office portfolio, comprising 18 buildings and 10 million square feet.

• Value collapse: Brookfield's (BN) Bank of America Plaza in Los Angeles has seen a staggering 69% drop in appraised value over a decade, highlighting ongoing challenges in urban office markets.

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• Whodunit? Speculation swirls as Delaware-based LLCs acquire nearly half the units in Miami's Solaris condo, with many suspecting Ken Griffin is behind the purchases to expand Citadel's HQ.

• BID in the Loop: Downtown Chicago property owners consider taxing themselves to combat high vacancies and improve urban conditions, joining a trend seen in major U.S. cities.

• Capital buffer: Amid rising delinquency rates in CRE loans, US banks have bolstered credit reserves to brace for further losses, with regulators affirming the system’s overall stability.

• Missed opportunity: MCB Real Estate withdrew a $1.45B offer to take Whitestone REIT (WSR) private due to a board disagreement on the $15 per share bid.

• Getting ready: US homebuilder confidence hit a 7-month high in November (post-election), driven by regulatory relief and strategic incentives to offset high prices and mortgage rates.

• Financing the future: Kennedy Wilson financed the first phase of the 595-unit Artwalk Towers project in Jersey City, part of a 1.2K-unit project.

• Sunbelt resurgence: The good ole Sunbelt saw improving apartment demand after many months of a supply mismatch, with Texas, Florida, and North Carolina retaining their status as key markets.

• Brooklyn's new gem: Canvas Property Group acquired The Azure tower in Downtown Brooklyn for $112.8M, with plans to revamp the building into retail spaces.

• Public potential: A Boston Foundation report suggests developing 5% of publicly owned land in the region could create 85K new homes, but legal hurdles and community resistance remain.

• Christmas spirit: Samaritan's Purse leased a 172 KSF warehouse in Acworth, GA, from Prologis (PLD) for Operation Christmas Child, one of eight such warehouses.

• Deal of the day: Longpoint Partners acquired a $331M, 26-building industrial portfolio from Blackstone in South Florida, solidifying its 4.7 MSF regional footprint.

• Warehouse wonderland: Realterm and Titan Development are set to construct a 440.3 KSF industrial project in Laredo, TX, featuring 36-ft clear heights and 150 dock doors.

• Breaking down: Advance Auto Parts (AAP), a nearly 100-year-old retailer with 5K stores, will close over 700 locations after facing ongoing financial struggles.

• Sweet, sweet luxury: Louis Vuitton's new NY flagship features an impressive atrium with signature trunks and a Le Chocolat shop, just for fun.

• Break out the champagne: The Connell Co. broke ground on a 60 KSF retail center in Berkeley Heights, NJ, part of The Park's $500M redevelopment, projected for completion by 2026.

• Retail blooms: Fidelis Realty Partners purchased 33 acres for a new shopping center in Castle Hills' The Trails development in New Caney, TX, near Houston.

• Skyscraper saga: Hines secured city approval for a 13-story, 435 KSF office project in LA's Arts District despite union opposition, but filling the space could prove challenging.

• Energy mergers: Exxon Mobil (XOM) will cut 397 jobs in Texas after acquiring Pioneer Natural Resources, more than doubling the energy company’s land holdings.

• Extended-stay evolution: Choice Hotels (CHH) celebrated opening its 500th extended-stay property, with 350 more in the pipeline across four brands.

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📈 CHART OF THE DAY