The pandemic threw the real-estate world into disarray, as people emptied out of offices, hotels, and malls and worked from their homes. That disruption has transformed how people and companies finance, operate, and occupy real estate.
Some big firms have been rethinking office needs — and some commercial real-estate deals were put on ice as financing dries up. Coworking and flex-office firms are struggling under big rent obligations after years of rapid growth.
A surge in e-commerce, meanwhile, is fueling demand for warehouse and cold storage space as companies look for new ways to reach customers. Life-sciences companies are fueling a big boom in demand for lab space. And with the pandemic increasing the amount of food delivery and hurting restaurants’ bottom lines, ghost kitchens see an opportunity to grow.
Still, companies like IBM and Facebook have been pushing ahead with plans for big office spaces, showing that it may be too soon to call and end to the office. Apple has been in talks to grow a Manhattan office that it leased earlier this year. And Amazon Music has just signed on for 40,000 square feet in Williamsburg, Brooklyn, to use as production and recording space.
Here’s the latest news on how real-estate markets are being upended, and how experts think these markets will play out in the long run.
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Facebook scored a $100 million break on its blockbuster NYC office deal, and it could mark the start of a wave of discounts as vacancies soar
Giant mall owner Brookfield Properties is ditching its worst locations and redeveloping what’s left into ‘mini cities’ that blend shopping with residential space
Hotel lenders are racing to dump risky loans as the hospitality industry nears a breaking point, with defaults stacking up and high-profile properties starting to shutter
- WeWork rival Knotel just told staff it’s looking to raise $100 million as it faces a turbulent office market and a host of unpaid bills
- WeWork is turning to big brokerages like CBRE and JLL to help it find customers. It’s a huge strategy shift that shows how hard office space is to fill right now.
- Wells Fargo is ditching a 750-person WeWork space, while Citi inked a deal with the flex-office giant far from a big city. Here’s a look at how financial firms are retooling their real estate.
- WeWork is looking to fill 2 million square feet of vacancies in New York City, its biggest market. Here’s what’s sitting empty.
- The short-term rental market is consolidating in big cities as demand surges in rural areas. Here’s how startups like Sonder are taking advantage of the shakeout.
- Office-rental startup Knotel bragged it was a nearly profitable anti-WeWork. Now lawsuits are stacking up. 12 insiders reveal what happened to the $400 million Knotel said it raised last year.
- WeWork is leasing a big new office in Jersey City to house the headquarters of a planned spin-off from pharma giant Merck. Here’s how the deal will work, and why it’s a big win for the struggling coworking giant.
- Women-focused coworking startup The Wing is almost $270,000 behind on rent and other charges at its Bryant Park location in New York, according to lawsuit
- Co-living is the real-estate industry’s big bet on dorm-like housing for young professionals. Here’s why players like Nuveen and Cushman & Wakefield remain bullish even during the pandemic.
- WeWork is ditching a major Manhattan office it hasn’t even moved into yet — and it’s the first big step in a turnaround that’s put its entire real-estate portfolio under review
- Vacancy rates are soaring above 15% in Washington DC’s normally recession-proof office market. Here’s how industry players think this downturn will shape up — and why some are still optimistic.
- Leaked financials from WeWork rival Knotel show huge pre-pandemic losses and a shrinking cash pile. It’s a grim sign for the flex-office space.
- After 2 layoff rounds, a valuation nosedive, and chaotic landlord negotiations, Airbnb-backed Zeus Living is shifting its business model. Here’s how the corporate-housing startup is moving forward.
- WeWork’s US head of real estate is leaving the coworking giant as the firm works through a major turnaround attempt
- WeWork is rolling out global layoffs over Zoom and has kicked off talks to slash jobs in the UK as the coworking giant struggles to cope with coronavirus fallout
- Knotel and insurance startup Rhino didn’t disclose its CEOs were brothers when it struck a complex financial deal. Now a key partner could be on the hook as Knotel scrambles to pay bills, slashes staff, and plans to shed portions of its portfolio.
- WeWork’s revenue growth rate was cut in half in Q1, as the company burned through nearly $500 million in ‘free
- As WeWork and flex-space rivals stumble, 18 million square feet of space in NYC is at risk. Here’s what that means for the real-estate market.
- Airbnb and RXR Realty are scrapping a partnership at Rockefeller Center that the home-sharing giant had touted as a ’21st-century hospitality model’
- Airbnb-backed corporate housing startup Zeus Living is asking landlords to renegotiate their leases and withholding April and May rent until they sign
- Knotel is scrambling to pay millions in bills that started stacking up before the coronavirus hit, and hasn’t paid April rent at some locations
- Leaked documents from Knotel show the WeWork competitor struggled to hit financial targets well before the coronavirus hit
- ‘This is the day of reckoning’ for companies like WeWork. 10 real-estate insiders lay out the future of flex-offices, and how employers are preparing now.
- Here’s the 21-slide pitch deck construction-tech startup Mosaic used to lay out its vision for the future of homebuilding and nab $14 million from backers including Andreessen Horowitz
- Burning through cash and nothing coming in: We talked to 7 VC investors about what’s keeping them up at night in their proptech portfolios
- Real estate giant CBRE has an ‘unparalleled’ amount of data. Its tech chief lays out how it’s putting it to good use.
- How commercial real-estate giant JLL is revamping its trainee program to help early-career brokers land deals
- WeWork is bringing corporate staff back to New York offices in 3 waves as the city enters the next stage of reopening. Here are the details the coworking giant just gave workers.
- Construction firms that get tech right could see Silicon Valley-like valuations. Here’s how an old-school industry can transform itself.
- Silver Lake just added to a string of recent travel bets by leading a $108 million investment in vacation property startup Vacasa
- Companies need to add contactless-entry tech to safely reopen offices. Here are 7 firms ranging from startups to huge conglomerates that are set for a surge in business.
- Robots, remote hires, and insourcing: A top UBS exec lays out how the Swiss bank is tackling the future of work and thinking about real-estate needs
- A smart home startup that raised $41 million from Amazon and Bain just launched an app that lets landlords and residents give remote access for deliveries, guests, and self-guided tours
- Here’s which real-estate tech startups will soar and which will flop in the new normal of how we occupy space, according to 7 top proptech VCs
- 10 CEOs from Coldwell Banker, JLL, Cushman Wakefield, and more lay out a post-pandemic future of how we’ll buy, build, and use real estate
- The office as we knew it is dead
- Mandatory temperature-taking is largely seen as a critical way to return workers to offices. But some big NYC landlords are worried about its effectiveness.
- The future of real estate could be virtual open houses on Facebook. Coldwell Banker’s CEO explains why the in-person industry needs to embrace going digital.
- ‘We should be prepared for a new normal’: 3 real estate experts on how the coronavirus is transforming offices and accelerating the rise of industrial property
- What to expect when you’re back in the office: 7 real-estate experts break down what the transition will look like, and why the workplace may never be the same
- Virtual tours are being hyped as a way for commercial real estate giants like CBRE and JLL to keep deals flowing. Here’s a look at how they work — and what factors they can’t replace.
- Real-estate services giant JLL explains how the coronavirus could usher in a permanent ‘paradigm shift’ towards more remote work