NYC Retail Rents Spiking, Supply Dropping
Retail property rents in Manhattan are increasing sharply and space availability is declining, says a report from the Real Estate Board of New York. The average asking rent for retail space in all of Manhattan increased 4% to $106/sf over the past year, according to the report, which also found declining availability in all sub-markets. For example, the amount available in Soho and Tribeca dropped 114,000 sf from year ago, and on Third and Madison avenues, between East 57th and East 72nd, it dropped 69,000 sf.

Suburban Philadelphia Office Market Tightens
Suburban Philadelphia’s office market is showing distinct signs of tightening. The market, with a total of 55 million sf, will likely have more than 1 million sf of absorption for the full calendar year, according to research from Cushman & Wakefield. Moreover, rents in some markets are approaching $35/sf for the first time in seven years, leasing incentives are drying and speculative space is being developed.

Investors Now Interested in Seniors Housing
Strengthening fundamentals in seniors housing is fueling investment and converting the sector into a more traditional real estate market, according to a report from Marcus & Millichap. Occupancy rates over the past year have strengthened in all seniors housing sub-sectors and are 90%-plus across-the board. Meanwhile, rents have increased by 4.7 to 5.8% according to the report. The increased activity is forcing operator-buyers to the sidelines and converting seniors housing from to a more traditional “property owner/leasehold operator” real estate play.

Bill Gates Backs $3.7B Offer for Four Seasons
An investor group backed by Prince Alwaleed and Bill Gates’ Cascade Investment has offered to take Four Seasons Hotels, Inc. private. The Saudi prince and Cascade would back a deal, valued at $3.7 billion. Cascade already owns 1.9% of the company’s outstanding common shares while the Gates Foundation owns another 6% of the company. The company manages 70 upscale hotels with 17,515 rooms in 31 countries. The company generated $125.4 million of revenue during the first half, and $22.5 million of net income.

$3.6B Redevelopment Proposed in Yonkers
Three regional developers have formed a partnership to launch $3.6 billion worth of redevelopment in Yonkers, NY. The Struever Fidelco Capelli partnership, recently provided city officials with plans for the project’s $1.6 billion first phase. It calls for 465,000 sf of retail, 475,000 sf of offices, 950 apartments, a 6,500-seat minor league baseball park and a 16-screen movie theater. The group also plans mixed-use development in the Cacace Justice Center area and near the rail station in Getty Square.

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