After four years, CBRE is finally back on top as the most active investment sales brokerage in the U.S. – at least for the first two-quarters. The company was able to grow their market share to 23.2 percent, passing former leader Eastdil Secured, who’s deal volume dropped by 19 percent this year. With the first half of the year’s deal flow the way it stands, CBRE is in first place followed by Eastdil Secured, and in third is New York brokerage, HFF. We’ll see if CBRE can hang on to the lead.
The Manhattan Supreme Court just fired a warning shot across the bow of Airbnb’s $31 billion boat. The court ordered an independent receiver be appointed to manage two Midtown residential buildings because the landlords apparently rented out their apartments illegally. In New York, it’s okay to rent out spare rooms in an apartment if the tenant or owner stays in the house with them, but it becomes illegal if they rent out the whole house or if the rental lasts longer than 30 days. State Senator Liz Krueger, explained the rule saying, “If grandma’s been [renting out her apartment] for 30 years and no one has complained, then it’s probably okay. If grandma’s figured out how to move to another state and turned it into a short-term stay unit, then that’s a big problem. If grandma’s figured out how to get herself 10 units, and grandma’s off in Vegas with the money she’s making from these illegal units, then go get grandma.”
Capstak had the opportunity to interview Cliff Mendelson, the impetus behind Metropolis Capital Advisors. Fun fact, Cliff Mendelson has attended 125 Bruce Springsteen shows. Also, he has more than 30 years of commercial real estate experience - completing more than $3 billion in transactions with Transwestern before founding Metropolis Capital Advisors in 2009. Cliff discusses how he stays competitive as a boutique firm, the biggest issues commercial real estate is currently facing and how he helps prepare students for a career in real estate as an instructor at Georgetown University. Read his profile to hear how he has grown his business.
On Tuesday, President Trump, among other things, signed an executive aimed at streamlining infrastructure approvals. The order removes the Obama-era Federal Flood Risk Management Standard, lowering the resiliency standards for projects vulnerable to sea-level rise. It also calls for the federal permitting and approvals process to be reduced to roughly two years, and for a single federal agency to lead the oversight for each project. What’s more interesting, this infrastructure plan will be led by two prominent New York City real estate developers.
Yesterday, the Census Bureau reported that retail sales are up, finally. July turned out to be not just better than expected but also the month with the biggest rebound in retail sales all year, rising 0.6 percent for the month and 4.2 percent since July 2016. Perhaps, the July uptick was fueled greatly by motor vehicle sales (pun intended) and by e-commerce, thanks Prime Day. So where does this leave brick and mortar retail locations?