msi Posted September 28, 2023 Share Posted September 28, 2023 2 hours ago, hotblack42 said: I presume you mean that when certain individuals return to the office & still don't contribute anything that they will be fired? Willingness to waste life commuting or waste money living near the workplace is no indicator of a person's usefulness / market value. Actually its the opposite. Remote working has shown who contributes and who just turns up for the proverbial tea and biscuits. I see a personal correlation between what these groups look like and it's not what our usual loons think. Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted September 28, 2023 Share Posted September 28, 2023 4 hours ago, hotblack42 said: I presume you mean that when certain individuals return to the office & still don't contribute anything that they will be fired? Willingness to waste life commuting or waste money living near the workplace is no indicator of a person's usefulness / market value. Actually its the opposite. I think you make it mandatory. and those without commitment who refuse to come will get all arsey and quit. Or you fire them, just make up something like ‘didn’t do a reasonable request - gross misconduct’ I think people will be much more willing to turn up if the alternative is being unemployed, with no easy jobs to jump to instead (due to recession) it’s an old tactic. Mess people about to thin out the herd. upset people into leaving. Quote Link to comment Share on other sites More sharing options...
msi Posted October 10, 2023 Share Posted October 10, 2023 Office space vacancies in US and London reach at least 20-year highs Quote Link to comment Share on other sites More sharing options...
telespy Posted October 25, 2023 Share Posted October 25, 2023 https://www.theguardian.com/business/2023/oct/24/remote-employees-dont-work-as-hard-says-head-of-worlds-biggest-commercial-landlord Quote Despite the widespread adoption of hybrid working by most office-based employers since the pandemic, the KPMG CEO Outlook survey found 64% of leaders globally, and 63% of those in the UK, predicted a full return to in-office working by 2026. 🤣 Quote Link to comment Share on other sites More sharing options...
msi Posted October 26, 2023 Share Posted October 26, 2023 Canary Wharf owners to inject £400mn into London office district Private equity group Brookfield and the Qatar Investment Authority, which have owned the east London financial centre since 2015, on Wednesday announced an equity infusion of £300mn and a £100mn revolving credit facility. Quote Link to comment Share on other sites More sharing options...
msi Posted November 10, 2023 Share Posted November 10, 2023 Overdue commercial property loans hit 10-year high at US banks Quote Link to comment Share on other sites More sharing options...
msi Posted November 13, 2023 Share Posted November 13, 2023 IKEA buys second UK shopping centre in estimated £145m deal for Brighton's Churchill Square Investment company Abrdn had originally hoped to sell the centre for around £250m, according to reports. Taking over 40% cut to offload is a smart move... Quote Link to comment Share on other sites More sharing options...
msi Posted November 15, 2023 Share Posted November 15, 2023 Lloyd’s of London strikes deal to remain in iconic HQ Lloyd’s of London is on the brink of a long-term deal to remain in its landmark City headquarters until the 2040s after more than a year of negotiations with its Chinese landlord....had agreed as part of the deal to remove a break clause in the lease in 2026...The existing agreement, which was due to expire in 2031, will be replaced with a new one under which annual rent increases will range from 3% to 5%, the real estate sources added. 3 to 5% for the next 20 years? Other tenants will be making notes. Quote Link to comment Share on other sites More sharing options...
msi Posted November 30, 2023 Share Posted November 30, 2023 European luxury property group Signa files for administration Lenders across Europe race to assess their exposure to sprawling empire of Austrian billionaire René Benko What happens when banks are exposed to contagion and don't understand their exposure... Quote Link to comment Share on other sites More sharing options...
msi Posted December 7, 2023 Share Posted December 7, 2023 Hedge fund Muddy Waters shorts Blackstone mortgage trust The chief investment officer of US-based Muddy Waters, Carson Block, told the Sohn investment conference in London that there was “a lot of rot in its book”, and that many of the borrowers whose loans make up the trust’s holdings were in danger of being unable to make payments. He predicted that the trust would have to “substantially cut its dividend” in the middle of next year and was “at real risk of a liquidity crisis”. Quote Link to comment Share on other sites More sharing options...
msi Posted January 19 Share Posted January 19 Zara billionaire grabs chance to buy up discounted real estate Zara’s billionaire founder Amancio Ortega is seizing on the commercial property downturn as a chance to buy assets on the cheap as high borrowing costs hand the advantage to debt-free investors. Quote Link to comment Share on other sites More sharing options...
NoHPCinTheUK Posted January 19 Author Share Posted January 19 53 minutes ago, msi said: Zara billionaire grabs chance to buy up discounted real estate Zara’s billionaire founder Amancio Ortega is seizing on the commercial property downturn as a chance to buy assets on the cheap as high borrowing costs hand the advantage to debt-free investors. No problem at all with people like this man buying stuff in cash without debt. Debt has ******ed up the world, allowing individuals without assets to borrow and buy properties using someone else’s money and having tenants paying their mortgages. BTL is the cancer killing the UK economy. If you have the money and you want to buy RE go for it. The problem is when “investors” were allowed to buy using leverage. This is the first time in the history of this country where a large proportion of “owners” is technically asset free and the only thing they can show is a rental contract and their debt servicing expenses. Quote Link to comment Share on other sites More sharing options...
Frankie Teardrop Posted January 19 Share Posted January 19 1 hour ago, msi said: Zara billionaire grabs chance to buy up discounted real estate Zara’s billionaire founder Amancio Ortega is seizing on the commercial property downturn as a chance to buy assets on the cheap as high borrowing costs hand the advantage to debt-free investors. "In the past month alone, Pontegadea has spent $113mn on a cold storage warehouse in the Miami area and €100mn on a distribution centre in the Netherlands used by Primark." "Its real estate portfolio is concentrated in western Europe and North America, where its prize assets include the Adelphi building and Devonshire House in London, and Amazon’s Seattle headquarters." Smart Money. Quote Link to comment Share on other sites More sharing options...
DiggerUK Posted January 19 Share Posted January 19 Commercial property is a challenged market. They aren't going to roll over and die. Following changes in legislation such property could be converted to supply units for the housing and rental sector. That will drop private sector prices at a stroke, I can't for the life of me see why in an election year no party is proposing such a scheme..._ Quote Link to comment Share on other sites More sharing options...
70PC Posted January 19 Share Posted January 19 5 minutes ago, DiggerUK said: Commercial property is a challenged market. They aren't going to roll over and die. Following changes in legislation such property could be converted to supply units for the housing and rental sector. That will drop private sector prices at a stroke, I can't for the life of me see why in an election year no party is proposing such a scheme..._ Agreed, unless of course the government is intent on choking supply to avert a price correction. From what I have read, a lot of help to buy is already in negative equity. Quote Link to comment Share on other sites More sharing options...
Casual-observer Posted January 19 Share Posted January 19 1 hour ago, DiggerUK said: Commercial property is a challenged market. They aren't going to roll over and die. Following changes in legislation such property could be converted to supply units for the housing and rental sector. That will drop private sector prices at a stroke, I can't for the life of me see why in an election year no party is proposing such a scheme..._ A lot of investors were hanging on last year to see where valuations were going i.e see if there was a recovery in the wings. From what I heard last week it looks like there's been a general acceptance it's not going to happen. Commercial real estate can only remain static for so long so looks like it's starting to unfreeze but it will ultimately end up with belt tightening and job losses. Quote Link to comment Share on other sites More sharing options...
msi Posted January 19 Share Posted January 19 1 hour ago, Casual-observer said: A lot of investors were hanging on last year to see where valuations were going i.e see if there was a recovery in the wings. From what I heard last week it looks like there's been a general acceptance it's not going to happen. Commercial real estate can only remain static for so long so looks like it's starting to unfreeze but it will ultimately end up with belt tightening and job losses. aka the Market doing it's job... Quote Link to comment Share on other sites More sharing options...
Frankie Teardrop Posted February 2 Share Posted February 2 It's starting to blow up: NYCB shares down over 50% after only two (!) CRE loans went bad and it decided to slash the dividend and increase reserves by ninefold: https://finance.yahoo.com/news/ny-community-bancorp-flashes-560-005309222.html Quote "The percentage of loans that banks have so far been reported as delinquent are a drop in the bucket compared to the defaults that will occur throughout 2024 and 2025,” said Aviram. “Banks remain exposed to these significant risks, and the potential decline in interest rates in the next year won’t solve bank problems." Quote Link to comment Share on other sites More sharing options...
Blobsy Posted February 2 Share Posted February 2 'The Xerox building in Washington DC just sold for $25 million. It was last purchased for $145 million just over a decade ago, in 2011. This reflects an 83% LOSS on the 19-story office building.' Quote Link to comment Share on other sites More sharing options...
cbathpc Posted February 2 Share Posted February 2 It is a curiousity as to what will happen when lease renewals come up. Surely businesses can't justify expensive leases for staff coming into the office 1 day, or less per week. Quote Link to comment Share on other sites More sharing options...
Locke Posted February 2 Share Posted February 2 8 hours ago, Blobsy said: 'The Xerox building in Washington DC just sold for $25 million. It was last purchased for $145 million just over a decade ago, in 2011. This reflects an 83% LOSS on the 19-story office building.' Lmao with inflation the loss is 87% If they'd just bought an index fund at 8% per year, that would be worth $404 million. So the loss is 94% Quote Link to comment Share on other sites More sharing options...
NoHPCinTheUK Posted February 2 Author Share Posted February 2 (edited) 4 minutes ago, Locke said: Lmao with inflation the loss is 87% If they'd just bought an index fund at 8% per year, that would be worth $404 million. So the loss is 94% ****** ‘em. These are the BTLs of the CRE. Property rental business, both in the commercial and residential landscape should be abolished. Only the state should built to rent at low prices. ****** these rentiers. ****** the whole lot of them. They have destroyed the West. Edited February 2 by NoHPCinTheUK Quote Link to comment Share on other sites More sharing options...
Locke Posted February 5 Share Posted February 5 On 02/02/2024 at 21:04, NoHPCinTheUK said: ****** ‘em. These are the BTLs of the CRE. Property rental business, both in the commercial and residential landscape should be abolished. Only the state should built to rent at low prices. ****** these rentiers. ****** the whole lot of them. They have destroyed the West. It is very advantageous for businesses to be able to rent property rather than buy it. It removes a barrier to entry, that being the upfront capital to purchase the property. Just abolish planning permission and let poeple get on with what they need to. The answer to the problem of "too much government interference" is not "more government interference". Quote Link to comment Share on other sites More sharing options...
regprentice Posted February 6 Share Posted February 6 canary wharf building sold at 60% discount. https://www.proactiveinvestors.co.uk/companies/news/1040341/canary-wharf-office-goes-for-knockdown-price-as-as-property-pressures-mount-1040341.html An office in Canary Wharf has been sold for a 60% discount to its list price as commercial property in London suffers and investment banks cut back on staff. The building, 5 Churchill Place was put up for sale last year when the owner, China’s Cheung Kei Group, defaulted on loans backed by the property. Menomadin Group, the vehicle of Israeli tycoon Haim Taib, has agreed to buy the building for £110m, according to React News. Cheung Kei paid £270m in 2017 having previously bought 20 Canada Square, another Canary Wharf site. Quote Link to comment Share on other sites More sharing options...
Tony_Teacake Posted February 6 Share Posted February 6 36 minutes ago, regprentice said: canary wharf building sold at 60% discount. https://www.proactiveinvestors.co.uk/companies/news/1040341/canary-wharf-office-goes-for-knockdown-price-as-as-property-pressures-mount-1040341.html An office in Canary Wharf has been sold for a 60% discount to its list price as commercial property in London suffers and investment banks cut back on staff. The building, 5 Churchill Place was put up for sale last year when the owner, China’s Cheung Kei Group, defaulted on loans backed by the property. Menomadin Group, the vehicle of Israeli tycoon Haim Taib, has agreed to buy the building for £110m, according to React News. Cheung Kei paid £270m in 2017 having previously bought 20 Canada Square, another Canary Wharf site. Interesting article. I believe we are going to see a tsunami of losses on commercial real estate globally as all these commercial loans are being rolled over on to these higher rates. WFH as crushed demand for office space and it is the banks who are the bag holders for these mortgages. Quote Link to comment Share on other sites More sharing options...
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