Finance Net Leasing
Residential Woes Spread to S.F. Office Market
May 13, 2008
Source: San Francisco Chronicle

For the first time in years, San Francisco companies gave back more office space they leased, raising fears that the commercial real estate market is suffering from the same blues as the residential sector. This occurred during last quarter, according to several reports cited by the San Francisco Chronicle.

According to CB Richard Ellis, a total of 436,933 square feet came back on the market during the first quarter -- nearly the amount of space comprised by the iconic Transamerica Pyramid. NAI BT Commercial said negative net absorption was only 4,031 square feet, but that that figure was the largest dip since 2003.

 
Recent Net Leasing Headlines
185 franklin Verizon Pockets $192M in Sale of Boston HQ
Oct. 16, 2008
Kennedy Associates has taken the 22-story office tower at 185 Franklin Street in Boston off the hands of Verizon Communications Inc. in a deal valued at $192 million. But Verizon is not walking away from the six-decade-old property completely. The telecommunications company will continue to own 100,000 square feet of the building, which has a total 700,000 square feet of rentable office space, and will lease back the remaining 600,000 square feet from Kennedy under a short-term agreement.
GM Seeking $500M Bond Investment or Sale-Leaseback of Detroit HQ
Oct. 14, 2008
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
NetLease Q&A: Randy Blankstein Says Market is Slowest in Career
Oct. 13, 2008

Early this year, when CPN last spoke with Randy Blankstein, president of Northbrook, Ill.-based Boulder Group and Boulder Group Net Lease Funds, the credit crunch was clearly affecting deal volume in the net lease world, but not quite as much as it would later in the year. Now, in the midst of financial turmoil unheard of since the 1930s, the outlook for net lease is even less promising. Blankstein foresees a recovery period of a year or more, with possible reverberations affecting net lease property valuations well into the 2010s.
ProLogis Takes 300,000 SF near Tokyo
Oct. 13, 2008
ProLogis Japan Properties Fund II has acquired a $65 million portfolio near Tokyo, it has reported. The deal includes three buildings totaling 300,000 square feet, all fully leased to three separate Japanese companies, located in Akishima City, a logistics hub approximately 50 kilometers from Tokyo's central business district.
ProLogis Takes Distribution Centers in Italy, France, U.K.
Oct. 09, 2008
ProLogis European Properties Fund II has acquired four, fully leased distribution centers comprising more than 1.1 million square feet at locations in France, Italy and the United Kingdom for approximately $106 million, it has reported.
 

 

TIAA-CREF: CRE OK for Now, Not Invulnerable
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