Would You Buy an Office Building?

The pandemic slammed the desirability of office properties as an investment. A gradual return to office, though, has brought that asset back from the brink. Still, hybrid work schedules persist and older office buildings in particular face an uncertain future. Here’s what the latest statistics tell us about the future of office sales. Also, several newer hotels have capitalized on the hipster cachet of Brooklyn’s Williamsburg. The neighborhood has a more corporate vibe now. What happens to the hotels?

These stories are part of our Daily Round Up, Click here to get it delivered straight to your inbox.

— Tom Acitelli, Co-Deputy Editor

US Office Sales Sank 28 Percent in 2022: Report

New data reveal how much the nation’s office sector is deflating in the wake of the pandemic. Total investment sales sank 28 percent in 2022 and the situation isn’t expected to improve in 2023, according to a new report from CommercialEdge. Investors in the U.S. completed $83.6 billion in office sales in 2022 at an average $247 per square foot, significantly lower than the $116 billion that closed at an average $280 per square foot in 2021. The future still remains unsettled nearly three years after the pandemic rocked the office sector, and “sales will be muted in 2023,” the report said, with larger gaps between sellers’ asking prices and any bids that come in from a smaller buyer pool. Further, many office developments will be paused or canceled this year due to higher interest rates and weakened demand. “ This will be another year of uncertainty and change in the office sector as it moves toward a post-pandemic status quo,” the report said. “Higher interest rates will hamper the new-supply pipeline and transaction markets in 2023.”

Read the rest of the story

Williamsburg's Luxury Hotels Thrive — For the Moment — as Neighborhood Shifts

Sunday, noon. The lobby of the Hoxton Hotel is crammed with people. The new Israeli restaurant there, K’Far, a satellite of celebrity chef Michael Solomonov’s Philadelphia original, is completely booked. There are cafe tables strewn around the airy, two-story lobby, but they’re all occupied by patrons sipping iced coffees and eating pistachio sticky buns. Eagle-eyed patrons are told they can snag a spot at the bar if they want something hot to eat. Upstairs on the roof, Solomonov has another restaurant, Laser Wolf (another restaurant that had its debut in Philly) that won’t open until that evening, but good luck nabbing a reservation at any time earlier than 10 p.m. (Maybe you can get a 5 p.m.) After a nasty opener to the decade, the Williamsburg hotel scene in 2023 is hopping.

Read the rest of the story

---------------------------------------------------------------------------------

Enjoying these stories on all things CRE? Unlock unlimited access to our content?with a subscription . And for a daily version of this newsletter,?sign up here .