The World Trade Center, Grand Central Terminal's grand new neighbor, time to buy the Empire State Building, diminishing returns, and falling forbearances.
In New York real estate news
What Real Estate Investors Should Know about the World Trade Center Rebuild
Millionacres' Maurie Backman shares some thoughts on this sad day of remembrance, including how ground zero in lower Manhattan has seen a rebuild many thought unlikely.
Why it matters: Developer Larry Silverstein's plans to quickly rebuild the towers were met with a host of pushback, but ultimately, he had a vision and saw it through. Nineteen years later, we have this affirmation that when it comes to real estate development, persistence is key.
SL Green's $3 Billion One Vanderbilt Faces Big Challenges
The ribbon gets cut in a few days on a 1,400-foot skyscraper with 1.5 million square feet of top-dollar office space by Grand Central Terminal in the Big Apple. And it's only 70% leased. This Wall Street Journal article (subscription required) reports: That's the good news.
Why it matters: As you read the piece, think of this massive project as a microcosm for an entire market beyond the concrete canyons of Manhattan. It's a look at the challenges facing office property in every major market in the country.
3 REITs to Buy in September
The Empire State Building is for sale, and it's a bargain. Seriously.
Why it matters: That most "New York of New York" skyscrapers is owned by Empire State Realty Trust (NYSE: ESRT), a real estate investment trust (REIT) that's one of three veteran Millionacres writer and investor Matt Frankel sees as promising bargains in today's beat-down office investing market.
In other news
PREA Consensus Survey Predicts a Dismal Year in NCREIF Returns
A survey of 21 investment management, research, and advisory firms by the Pension Real Estate Association (PREA) says they expect total returns to decline by 2.7% this year but grow by 2.5% next year and 7.3% in 2022. Retail is suffering the most while industrial is holding up the best.
Why it matters: Pension funds, endowments, REITs, insurance companies, and lots of other heavy hitters belong to the PREA, and the NCREIF Property Index is an authoritative metric for what's happening in the CRE market.
1.7M Forbearance Plans Set to Expire in September
Black Knight (NYSE: BKI) said today that 1.7 million active mortgage forbearance plans are still expected to expire this month, down 350,000 from Sept. 1.
Why it matters: The numbers are falling, but that's still a heck of a lot of extensions and removals servicers will need to consider. It remains to be seen how many will turn into delinquencies and foreclosures, which already have begun to rise.