DealBook has an article up today about the office sublease market in NYC and the impact lower offering rates are having on space offered directly by building owners. Every time I read about NYC rents my head just spins. The numbers are just astronomical. According to the article, average asking rents for Class A office [...]
Standard & Poor’s had downgraded 15 classes of bonds backed by a $425 million loan secured against the Four Seasons Hotel in New York and 3 other luxury resort hotels. The action was triggered by a drop in cash flow which was 46% below S&P expectations. Surely, the expected cash flow figure had already been [...]
I don’t know what is more brutal, a 44% decline in effective rental rates or the fact that office rates ever reached $70 PSF in the first place. Calculated Risk has the post here which summarizes an article from Rueters. I love the analogy put forth by the guy CR calls Brian in which he [...]
Goldman reported great 2Q numbers this morning with a 65% surge in earnings. A good portion of their profit came from recent underwritings of REIT offerings. On their press call this morning, Goldman disclosed a $700 million loss in commercial mortgage loans and a $500 million loss in RE principal investments – ouch. The piece [...]
