Opening an Office REIT Window
Commercial Observer
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Vornado Realty Trust is out with its first quarter numbers, and the figures provide a snapshot into how larger office-focused real estate investment trusts are doing this far out from the pandemic. Short answer: Not as good as before. Long answer: Gradually getting better. Today there’s also an interview with CBRE’s property management chief.
— Tom Acitelli, Deputy Editor
Lagging Occupancy in Q1 Shows Vornado Still Not Out of the Woods
Manhattan’s second-biggest office landlord needs to fill some big gaps in its portfolio, and it’s willing to make concessions to do so. Occupancy across Vornado Realty Trust’s 20.4 million-square-foot office portfolio fell to 89.3 percent in the first quarter of 2024 from 90.7 percent at the end of last year, according to the real estate investment trust’s earnings report released Monday night. Once upon a time, before the pandemic, the firm’s office occupancy rate was north of 97 percent. But occupancy has been sliding for five years now, and executives at Vornado say it hasn’t yet reached the bottom, with Facebook parent Meta planning to vacate its 275,000 square feet at 770 Broadway in June, among other lease expirations coming up this year.
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CBRE's Craig Hudleston on Leading a New Approach to Operations
Craig Hudleston has been spending plenty of time on airplanes flying from his home in Singapore to New York since his promotion to global chief operating officer for CBRE Property Management in August 2020. Now, he’s set his sights on piloting the brokerage’s newly launched investor portfolio management (IPM) service to new altitudes. Hudleston will soon be relocating permanently to CBRE’s New York office to tackle the IPM role, which grew out of business created through a partnership with Brookfield Properties announced in January. The two companies under Hudleston’s guidance are striving to boost the value of Brookfield’s extensive U.S. office portfolio through enhancements to property management and tenant services. An Australia native, Hudleston spoke with Commercial Observer on his most recent visit to New York.
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