WeWork landed Manhattan’s biggest financing deal in February with the coworking giant’s $850 million purchase of its new headquarters on Fifth Avenue, The Real Deal reported this week.
It wasn’t too long ago that CRE professionals thought coworking would be here today and gone tomorrow. Now, industry experts are claiming that shared spaces are the future.
This month, Convene, an event space transformed into coworking space, announced a new partnership with health care startup Eden. By placing clinics in their office spaces, Convene is now adding primary care for all tenants and members to the list of amenities that flexible office spaces often provide.
Flexible coworking spaces like Burbspace, RedChair Workspaces and Ts117, to name a few, are popping up all over the U.S. Just this week, the newest addition to shared workspaces in Albany, CapCity CoWorks, opened up in one the city’s tallest office buildings.
Hospitality’s Sluggish Start in 2019
Commercial real estate financing for hotel properties dropped 25% in the first nine months of 2018, more than for any other major property type, CrediFi found in a report on hospitality lending trends released this week.
These findings are bolstered by data from market research firm STR and the latest jobs report, which found zero jobs growth in the leisure and hospitality segment in February.
Hospitality occupancy is projected to be flat this year, for the first time since 2009, according to STR.
You may recall that the retail report for the Christmas season was far from encouraging, with December sales diving 1.2% – the biggest plunge since 2009. Now Monday’s retail report demonstrates that December was even worse than we thought, with revised figures showing sales actually fell 1.6%.
But this week’s report also bore good news: Sales stabilized in January, with a rise of 0.2% beginning to make up for a small share of sales lost the previous month.
Will this be enough to trigger renewed momentum, both in the retail sector and in the U.S. economy at large?
Douglas Porter, chief economist for BMO Capital Markets in Toronto, has answers: a little, and not necessarily.
“Sales managed only a tepid reversal in January from December’s deep freeze,” he told Reuters. “While we expect some further comeback in the next couple months, the big story is that the economy’s big engine is cooling.”
Trump’s Record Budget Proposal
On Monday, President Trump proposed a record $4.75 trillion for his third budget proposal, which included increased funding for the border wall and slashing funding for social programs.
Some have questioned whether an oversize draft would ultimately erode America’s credit overseas, which could potentially have the effect of making U.S. commercial properties less attractive to foreign buyers.
Find out who’s financing hospitality properties. Download CrediFi’s hospitality report to learn more about U.S. hospitality trends and lenders.