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Nuveen’s 701 Brickell office tower hits the market for over $500M

Nuveen Real Estate listed its 701 Brickell office tower in Miami for more than $500 million, marking at least the fourth property in the financial district to hit the market since the fall. New York-based Nuveen’s 33-story bayfront tower, named for its address at 701 Brickell Avenue, is more than 90 percent leased, according to a source. Tenants include law firm Holland & Knight…

Nuveen Seeking More Than $500M For Brickell Office Tower

Nuveen Real Estate is looking to sell 701 Brickell Ave. less than a year after it offloaded another nearby office building in Miami’s financial district. Nuveen, the real estate investment arm of the Teachers Insurance and Annuity Association of America, is looking for more than $500M for the 685K SF office tower in the heart of Brickell. The property is around 92% occupied by high…

Foundation Work Progresses On The Site Of Miami’s First Supertall Skyscraper

Foundation work at 300 Biscayne Boulevard, the site of the forthcoming Waldorf Astoria Hotel & Residences, has reached a significant milestone. This 100-story supertall tower, designed by Sieger Suarez Architects in collaboration with Carlos Ott, is poised to transform the downtown Miami skyline. Developed by Property Markets Group in partnership with Greybrook Realty Partners…

Codina-led JV scores approval for Hialeah mixed-use project

A Codina Partners-led joint venture nabbed the initial green light for a planned transformation of a former Sears store, an outparcel and a parking lot in Hialeah into a mixed-use project. The Hialeah City Council voted unanimously on first reading last week to approve Westland Plaza, a planned complex of 815 apartments, 15 townhomes, roughly 32,624 square feet of commercial…

Major developers are converting South Florida malls into mixed-use projects

Electra America and BH Group plan to tear down a big box store on an outparcel of Cutler Bay’s Southland Mall later this year, after the current tenant, Ross Dress For Less, moves into a space in the indoor shopping center. The move will jumpstart the first phase of the joint venture’s $1 billion makeover of Southland Mall into Southplace City Center, a mixed-use project that will…

The Weekly Dirt: South Florida developers go shopping at the mall

At least seven redevelopments of indoor malls are in the works, fueled by the demand for housing. Electra America, BH Group, Aimco, Codina Partners, Midtown Equities, Jericho and Kimco Realty are all playing in the space, Francisco Alvarado reports. It’s a win-win for struggling malls and developers looking to cash in on opportunities to fill the need for housing — a need that was…

Miami Worldcenter to get 53-story condos-and-hotel tower

A developer is bringing a new mixed-use residential tower that will include a hotel and outdoor dining to Miami Worldcenter. Miami A/I Parcel 3 Subsidiary LLC has presented a plan for Miami Worldcenter Block C East at 155 NE 10th St., in the northern edge of the booming Miami Worldcenter District. This latest project will be a 53-story mixed-use tower with a 280-key hotel…

Henry Pino’s Alta lands $68M construction loan for short-term rental condo near Miami River

Alta Development scored a $68 million construction loan for a 283-unit short-term rental-friendly condo near the Miami River. The Kendall-based firm plans the 16-story River District 14 on the 1.3-acre site at 1451 Northwest 14th Street in Miami, according to Alta principal Henry Pino. Boynton Beach-based Forman Capital is the lender. River District 14 is more than 70…

Allen Morris scores approval for once-controversial Ponce Park Residences

After a number of rejections and opposition from neighbors, the Allen Morris Company secured approval for a downsized version of its plans for Ponce Park Residences in Coral Gables that’s been years in the making. The latest version of its plans call for a nine-story building with 57 luxury condos at 3000 Ponce de Leon Boulevard, across from the major mixed-use Plaza Coral…

Fuse sells pair of unfinished Coconut Grove buildings seized from developers

Lender Fuse Group sold a pair of unfinished Coconut Grove buildings tied to defaulted loans from two developers. Fort Lauderdale-based Fuse sold the building shells at 2961 and 2967 Bird Avenue in Miami to an entity led by Patrizio De Brasi for $8.1 million, according to records. De Brasi took out an $8.2 million loan from Fuse. The deal comes after the properties were tied…

Homestead Will See Construction of 1,100 Unit Mixed-Use Development

The Homestead Commission is discussing a large development which will be known as Sandero Landing. This is set to have 1,100 units, along with restaurants and stores. The development will be located on 90 acres of land. The project in question will be built on 90 acres on South 328th Street. The goal is to create a place where many people can live, work and play. There will be office…

Wynwood Arcade being redesigned as Wynwood Jungle

An old established building in the booming Wynwood Arts District is being reborn – again. The City of Miami’s Wynwood neighborhood continues its evolution from industrial warehouse district to a new and vibrant mixed-use neighborhood peppered with street art. The former warehouse at 50 NW 24th St., first reborn as the Wynwood Arcade, is being repurposed once more…

Coto family, Aston Martin complete $1B branded condo tower in downtown Miami

A marching band began playing “Celebration” by Kool & the Gang at the ribbon-cutting ceremony marking the opening of Aston Martin Residences, a waterfront luxury condo tower just completed in downtown Miami. The Coto family, executives from Aston Martin, architect Rodolfo Miani of Buenos Aires-based Bodas Miani Anger, Cervera Real Estate leaders and Miami Mayor…

‘It was heaven. It’s gone.’ Grove Isle residents say Miami broke laws to let tower rise

One of the serene pleasures of Wendy Gordon’s daily routine was sitting on her Grove Isle balcony and watching the sun rise over Biscayne Bay, framed by Key Biscayne and the downtown skyline. No more. The sun is blotted out by a new 91-foot tall, stadium-like condominium that curves around the north end of the island and shrouds Gordon’s Building 3 in shadow…

174-Unit ‘Cassia’ Planned for 4011 Salzedo Street in Coral Gables

Cassia, a 12-story upscale housing complex, is slated for Coral Gables. Our sources indicate that the building will host 174 condos, with homes measuring 662 square feet to 1,439 square feet each. The furnished residences will span one-bedroom to three-bedroom floorplans, with the cost of ownership starting in the $700,000s. The most expensive units hover around $1.8M…

New Renderings Revealed For Okan Tower At 555 North Miami Avenue In Downtown Miami

New renderings have been revealed for Okan Tower, a 70-story mixed-use building under construction at 555 North Miami Avenue in Downtown Miami. Designed by Behar Font & Partners and developed by Okan Group, the 902-foot-tall, 914,124-square-foot structure will yield 399 residences, a 316-key hotel, along with 64,000 square feet of ‘Class A’ office space…

Miami Worldcenter Was Almost A ‘Dinosaur.’ Now It’s A $6B Juggernaut

The Miami Worldcenter team had just broken ground on its debut tower when its plans began to fall apart. Macy’s and Bloomingdale’s were set to anchor the first phase of the 27-acre, $6B development in the heart of Miami, but in mid-2015, the company’s stock was cratering as Americans shifted to shopping online. The 60-story Paramount Miami Worldcenter condo…

Crunch Fitness founderDoug Levine sells three Wynwood buildings for $24M

Crunch Fitness founder Doug Levine sold a trio of commercial buildings in Miami’s Wynwood for $23.5 million, roughly $6 million below his asking price, The Real Deal has learned. Wynwood 126 acquired the 0.7-acre portfolio that can be redeveloped into a mixed-use project with a hotel or multifamily component, according to Tony Arellano and Devlin Marinoff with Dwntwn…

Gucci opens at Dadeland Mall & Other South Florida Leasing News

Gucci opened a boutique in Dadeland Mall. The luxury fashion brand’s 6,000-square-foot store features handbags and accessories, including items from the Gucci Valigeria collection, according to the tenant’s news release. Simon Property Group owns Dadeland Mall at 7535 Southwest 88th Street in the Kendall neighborhood of unincorporated Miami-Dade County.

FAA Permits Issued For 33-Story Residential Tower At 2411 Laguna Circle In North Miami

The Federal Aviation Administration (FAA) has issued permits for One Park Tower by Turnberry, an imminent 33-story residential building located at 2411 Laguna Circle within the 184-acre master-planned community of SoLé Mia in North Miami. Conceived by Arquitectonica and developed by the Aventura-based Turnberry, the 370-foot-tall structure will sit south…

Developers propose 44-unit multifamily project in Goulds

A trio of developers want to build a 44-unit multifamily building with workforce apartments in Goulds, marking continued interest in south Miami-Dade County’s residential market.Javier Sanchez, Marianna Parra Villegas and Adriana Ortega, through an affiliate, propose the six-story Horseshoe Cay Apartments on a 0.3-acre site at 21839 Southwest 118th Court in an unincorporated…

44-Unit ‘The Horseshoe Cay Apartments’ Proposed for 21839 SW 118th Court in Miami

Horseshoe Cay LLC secured a .34-acre parcel for $1.5 million in 2023. Now, it has filed a pre-application with Miami city officials for a six-story apartment complex. The Horseshoe Cay Apartments would offer 44 apartments: 17 one-bedroom units and 27 two-bedroom units. Homes would measure about 545 square feet to 870 square feet each. The South Florida Business…

Developer proposes 23-story mixed-use tower with racket sports courts in Brickell

A developer wants to build a 23-story mixed-use tower with racket sports courts on the former Babylon Apartments site in Miami’s Brickell. The plan comes five years after a contentious proposal for a 24-story building on the property fizzled amid neighbors’ opposition. Yet, the zoning has changed since then. In February, Miami-Dade County included the development site…

First Standalone Four Seasons Condo Planned for 2699 S Bayshore Drive in Coconut Grove

Four Seasons Private Residences Coconut Grove is slated to be the luxury brand’s first standalone venture in the state, offering “legendary service and experiences outside of a hotel or resort.” The 20-story tower will offer 70 homes, four of which are penthouses. Our sources indicate that standard floorplans range from one-bedroom to two-bedroom models, measuring 2,000 to 3,980 sf…

Miami commissioners reduce fines for Château Group’s downtown Miami dev site

Château Group is getting an $800,000 reduction in fines accrued at a downtown Miami development site where a tenant operated an illegal parking lot. The Miami City Commission voted on Thursday to slash $1.1 million in daily accrued fines to $300,000 stemming from a former tenant at 666 Biscayne Boulevard operating a parking lot without a certificate of use from the city.

‘In a holding pattern’: South Florida apartment developers pause projects

Developer Dan Kodsi isn’t rushing to build multifamily projects in South Florida. Two years ago, he jumped into the market with proposals for an apartment tower in Aventura and another in Miami. Now, he’s reevaluating the developments and tweaking both. “It’s too expensive to build [high-rise] apartments today,” Kodsi said. “The margins are very razor tight…

Prologis Expects Lower Average Occupancy Nationally in The Year Ahead

Skittish customers determined to keep a tight rein on costs are holding back on leasing additional logistics space, executives of Prologis reported in their 1Q 2024 earnings conference call. “While operating conditions are healthy in the majority of our markets, customers remain focused on controlling costs, which is weighing on decision making and the pace of leasing,” Prologis…

MisterO1 Extraordinary Pizza Signs 10-Year Retail Lease in Pinecrest

MMG Equity Partners’ retail shopping center in Pinecrest, Pinecrest Shoppes, will be the new home of MisterO1 Extraordinary Pizza. The 2,730-square-foot, newly renovated space (formerly occupied by Mayweather Fit) required a full build-out. Pinecrest Shoppes is located in Miami-Dade’s busiest retail corridor. Its affluent and densely populated trade area includes some…

Preserve or Tear Down: The dilemma of old vs. new plagues Belle Meade residents

Belle Meade is at a turning point in its long-winding history, but as is the case with most evolutions, it’s being preceded by a war. There are two camps developing in the Upper East Side neighborhood: those who want to preserve the eclectic character of the community, and those who want to preserve their rights as property owners to remodel and rebuild as they wish. Surely, there…

Pharmaceuticals take off as a top Miami export

As Miami International Airport continues to grow its cargo, pharmaceuticals fly high among its top commodities. “Over the last, I want to say three, four years, we’ve had… [about] four straight record-breaking years in just cargo overall,” said Ralph Cutié, director of the Miami-Dade Aviation Department. “Back during the pandemic we had, I think it was a little bit over 2.3 million…

Assurant To Relocate In One Of Miami’s Largest Leases Of 2024 So Far

Assurant is moving its Miami offices from the sprawling 79-acre campus it owns to a 78K SF lease that marks the second-largest office deal in the city so far this year. The insurance giant is slated to move into three floors at 701 Waterford Way in the Waterford Business District in June 2025 after listing its campus west of Cutler Bay for sale nearly a year ago. The Waterford…

Tri-Rail chugging toward tri-county express trips

Tri-Rail is closing in on an express service with limited stops between downtown Miami and West Palm Beach, the first Tri-Rail into downtown where passengers won’t have to change trains. The request for a single express train morning and night was on track for South Florida Regional Transportation Authority board action, executive director David Dech told the Citizens…

Miami Beach’s oldest structure, Collins Canal, may get historic label

Miami Beach’s oldest manmade structure, the Collins Canal, is flowing slowly toward historic designation. The flow of state grants could follow. The Miami Beach City Commission referred historic branding to a May 1 meeting of the Land Use and Sustainability Committee. The Historic Preservation Board initiated the designation talks, said Deborah Tacket…

City of Miami Sides with Arts Groups in Billboards Vote

City of Miami commissioners voted 3-2 April 25 to ban future construction of oversized, digital billboards in the municipality. But to be clear, residents will still stumble upon these very structures during their downtown walks or drives. The vote puts the city one step closer to rescinding an ordinance passed in 2023 that allows 100-foot LED billboards spanning 1,800 square feet…

46-Story Tower Designed By FSMY Architects + Planners Proposed For 100 NW 7th Avenue In Fort Lauderdale

On April 23, the Development Review Committee in Fort Lauderdale began reviewing plans for a new 46-story multi-family development at 100 Northwest 7th Avenue, situated just a few blocks east of Brightline’s Fort Lauderdale Station. The project, designed by Josh Bailey of the local architecture firm FSMY Architects & Planners and developed by Miller Property Invest…

Steve Ross’ Related sells W Fort Lauderdale to Blackstone for $98M

After holding onto the W Fort Lauderdale for more than a decade, Steve Ross’ Related Companies sold the 346-key oceanfront hotel for $97.7 million. An affiliate of New York-based Blackstone, led by CEO Stephen Schwarzman, acquired the hotel portion of the 3.8-acre property at 401 North Fort Lauderdale Beach Boulevard, records show. The investment giant paid $282,225…

Proposal Unveiled for Redevelopment of West Palm Beach Family Church Site Featuring Two Condo Towers and New Church Facilities

Related Companies, headed by Stephen M. Ross, and Frisbie Group have partnered with the Family Church to envision a transformative redevelopment project in downtown West Palm Beach. Designed by New York’s Kohn Pedersen Fox Associates, the project calls for two condominium towers of 28 and 32 stories on the church’s expansive 9.6-acre site at 1101 South Flagler Drive…

Steve Ross’ Related, Frisbie propose 190-unit condo project on West Palm church site

Steve Ross’ Related Companies and a partner propose a pair of condo towers with a total of 190 units on a church site near downtown West Palm Beach. New York-based Related and Palm Beach-based Frisbie Group want to build a 28-story building and a 32-story tower on the Family Church property at 1101 South Flagler Drive, while preserving the main worship hall and…

Forté on Flagler Tops Off At 1309 South Flagler Drive in West Palm Beach

Construction has topped off on Forté on Flagler, a 25-story residential building at 1309 South Flagler Drive in West Palm Beach. Designed by Bernardo Fort-Brescia of Arquitectonica with interiors by Jean-Louis Deniot and developed by a joint venture between Two Roads Development and Alpha Blue Ventures, the approximately 300-foot-tall structure will yield 41 residences…

South Florida’s branded condo boom arrives in West Palm Beach

Behind the hedges in Palm Beach hide meticulously maintained architectural samples of old-world opulence. Regency, Mediterranean and Georgian-style estates, many of them built for the heirs to America’s early industrial fortunes, blend into palm trees and lush tropical landscaping. They’re understated, but commanding. The condominiums that sprang from the sand in the…

Burger King to Invest $300M to Remodel 1,100 US Restaurants by 2028

Burger King plans to invest $300 million to modernize 1,100 U.S. restaurants by 2028, according to parent company Restaurant Brands International Inc. (NYSE: QSR). Each restaurant will be renovated in a new layout, called Sizzle, that emphasizes flexibility as well as the digital, pick-up and drive-thru experiences. In addition to the planned renovations, the investment will also…

How Dollar Strength Can Affect Industrial Commercial Real Estate

Reshoring manufacturing has become a trend since the pandemic, as reported by outlets like CNBC, and it all comes down to supply chains. But those in industrial CRE who could benefit from it are learning that keeping up with foreign exchange issues and the current strength of the dollar can be as important as monitoring interest rates. During the pandemic, supply chains broke.

Video: Hessam Nadji discusses bright spots and challenges in commercial real estate

The Discussion: Navigating Storm Clouds and Bright Spots: Insights on Commercial Real Estate As the economic landscape continually shifts, discussions surrounding the commercial real estate market are more pertinent than ever. Recently, on a segment dedicated to real estate, Hessam Nadji, CEO of a large brokerage, provided invaluable insights into the sector’s current state…

Report: Red Lobster Wants To Reel In A Buyer Amid Debt Restructuring And Potential Bankruptcy

Red Lobster has reportedly been fishing for a potential buyer as it considers debt restructuring options that include possible Chapter 11 bankruptcy. The struggling seafood chain sought a buyer in recent months, people familiar with the matter told CNBC. A potential buyer was lined up but the deal fell through, the outlet reported. Red Lobster has been trying to break some contracts…

Amazon Logistics Manager Says EVs Are ‘Past The Tipping Point’ And Industrial CRE Needs To Take Notice

Amazon has been building out infrastructure for electric vehicle fleets over the last two years, and it has reached a turning point that industrial real estate developers and owners should take note of, one of the firm’s senior managers said Tuesday. “The [electric] vans are coming … I believe we’re past the tipping point,” Mark Purcell, a senior construction manager with Amazon…

Self-Storage Slide Continues With Declining Rents, Projects Abandoned

Self-storage, an early pandemic wunderkind in commercial real estate, continued its steady decline in March, with rents dropping 4.5% annually, according to Yardi Matrix. Rents hit $16.25 per SF, showing declines for both climate-controlled and non-climate-controlled properties, the company found. REITs dropped their rates to attract new customers and smaller operators…

CRE Industry Nationally Less Optimistic About Cap Rates, Interest Rate Cuts

Optimism levels about the impact of mortgage and cap rates on commercial real estate are mixed, according to a new survey from CRE Finance Council, with 31% expecting a positive impact and 37% foreseeing a negative one. This marks a shift from the previous quarter’s more optimistic 48% reading, according to the 1Q 2024 Board of Governors Sentiment Index survey.

Republic First Bank Seized With $1.7B Of CRE Loans On Its Books

Republic First Bank, which had $1.7B in commercial real estate and construction loans on its books, was taken over by regulators and sold this weekend. The Philadelphia-based bank was shut down by the Pennsylvania Department of Banking and Securities on Friday, the first regional bank failure this year. It had $6B in total assets. Fulton Financial bought its deposits and assets…

Yardi To Become WeWork’s Majority Owner In $450M Bankruptcy Exit Plan

Attorneys for WeWork revealed in a Monday morning bankruptcy hearing that under its plan to exit bankruptcy, property management software provider Yardi Systems would become the majority owner of the coworking titan. Under the terms of WeWork’s proposed financing deal to exit bankruptcy, the company’s senior lenders agreed to inject WeWork with $50M to keep…

Video: Trepp Chief Product Officer Lonnie Hendry Provided Update on Real Estate Financing And Distressed Loans

In the dynamic world of commercial real estate, staying ahead requires not only understanding the current market trends but also engaging in insightful conversations with industry experts. Recently, a conversation on America’s Commercial Real Estate Show with Lonnie Hendry, Chief Product Officer at Trepp, provided a deep dive into the current state of commercial…

The post Miami Commercial Real Estate News May 1, 2024: Brickell Office Tower Hits Market at $500M; Hialeah MXU Project Approved; $1B Aston Martin Tower Completed; More… appeared first on Hawkins Commercial Realty.

Navigating the Currents of Commercial Real Estate: Insights from a Conversation

In the dynamic world of commercial real estate, staying ahead requires not only understanding the current market trends but also engaging in insightful conversations with industry experts. Recently, a conversation on America’s Commercial Real Estate Show with Lonnie Hendry, Chief Product Officer at Trepp, provided a deep dive into the current state of commercial real estate financing and distress market movements, covering such topics as delinquencies, new loan issuance, transaction volume, interest rates, and strategies working for commercial real estate lenders and borrowers. Note that this discussion is national in scope, thus some observations may apple little or not at all to Miami area commercial real estate. Let’s unpack some key takeaways from the discussion.

1. Shifting Trends in Distress Market:
Lonnie Hendry noted a notable inflection point in the distress narrative within the commercial real estate market. While distress had been a prevailing theme in recent times, there’s now a pushback against this narrative. Transaction velocity is picking up, and new origination loan issues are on the rise. Despite challenges in sectors like office and some multifamily properties, there’s a sense that certain markets have bottomed out, signaling a readiness for recovery.

2. Delinquency Rates and Market Activity:
Surprisingly, March saw a slight decrease in CMBS delinquency rates, reversing the trend of increasing delinquencies. This decline, albeit modest, hints at a potential shift in market dynamics. While distressed assets still exist, there’s optimism that the worst may be over. The market is showing resilience, with lenders becoming more proactive in addressing their exposure to distressed assets.

3. Lender Strategies and Relationship Building:
Amid market uncertainties, lenders are adopting strategies focused on proactive risk management. They’re evaluating distressed loans and working with borrowers to find viable solutions, including workouts, note sales, or short sales. Building strong relationships with borrowers during challenging times can be crucial for lenders. Engaging in transparent communication and understanding the unique needs of each party can lead to mutually beneficial outcomes.

4. Interest Rate Environment:
There’s a cautious outlook regarding interest rates. While some anticipate potential rate reductions, others believe that rates may remain relatively stable. Regardless of interest rate movements, it’s essential for investors to focus on the broader market fundamentals and not solely base investment decisions on rate projections. Real estate investments are long-term endeavors, and factors beyond interest rates should be considered.

5. Resilience of Commercial Real Estate:
The conversation highlighted the resilience of the commercial real estate market. Despite challenges, opportunities abound for savvy investors and lenders. Understanding local market dynamics, fostering relationships, and adapting to changing conditions are key strategies for navigating through uncertain times.

In essence, the conversation underscored the importance of staying informed, adaptable, and proactive in the ever-evolving landscape of commercial real estate. By leveraging insights from industry experts and maintaining a forward-thinking approach, stakeholders can position themselves for success amidst market fluctuations.

Regarding Trepp

Trepp asserts its position as the industry’s largest commercially available database of securitized mortgages, representing just one facet of their value proposition to clients today. They maintain that only Trepp provides the timeliness, accuracy, and breadth of specialized information necessary for clients to make informed decisions across diverse business lines. Trepp claims that their institutional-grade analytics platform offers a complete picture, featuring multiple reference points for debt, equity, operating, and market performance analysis.

The post Expert Insights: Real Estate Financing And Distressed Loans Update From Trepp appeared first on Hawkins Commercial Realty.

The Discussion: Navigating Storm Clouds and Bright Spots: Insights on Commercial Real Estate

As the economic landscape continually shifts, discussions surrounding the commercial real estate market are more pertinent than ever. Recently, on a segment dedicated to real estate, Hessam Nadji, CEO of a large brokerage, provided invaluable insights into the sector’s current state, highlighting both challenges and areas of resilience. The discussion is about commercial real estate in the United States at large, thus observations can apply less or even not at all to South Florida commercial property.

The conversation began with a broad question about the sector’s overall health and resilience. Naji emphasized the importance of separating property fundamentals from capital market dynamics. Despite concerns about tightening spreads and debt worries, Naji underscored that property fundamentals remain robust. Across most sectors, occupancy rates are high, with only the office sector facing notable challenges, particularly in urban areas where vacancy rates are elevated due to evolving work trends.

Nadji identified pockets of overbuilding in certain segments such as apartments and warehouse distribution facilities, driven largely by the growth of e-commerce. However, these concerns are not indicative of broader performance issues across the industry. He noted that the primary drag on performance comes from older urban office spaces, where vacancy rates are highest due to shifts towards hybrid work models.

Moving to the capital markets, Nadji pointed out the lingering gap between buyers and sellers, coupled with reticence from lending institutions to actively engage in the market. This hesitancy contributes to ongoing challenges, particularly in terms of valuation and sentiment within the sector. Nadji acknowledged that market sentiment is closely tied to Federal Reserve expectations and interest rate movements, with fluctuations in these factors directly impacting stock prices and overall market sentiment. “There’s a direct correlation between the groups, the entire sector’s valuation movement, and Fed sentiment. We saw a big run-up in the sector’s valuations late last year when interest rates were coming in. The 10-year Treasury had peaked around 5% and then boom, all the way back down to 4% and you saw the stock prices go up accordingly and when the Fed basically changed its mind again given the inflation readings of the last couple of weeks coming in hotter than expected and now the notion of delaying the easing cycle you see the stocks are under pressure again so there’s a direct correlation between Fed expectations and interest rates.”

In response to questions about client priorities, Nadji highlighted a noteworthy shift in investor behavior. While there is anticipation for a potential easing cycle from the Federal Reserve, investors are not solely reliant on this event. Instead, they are increasingly drawn to properties that offer competitive pricing relative to replacement costs. This shift indicates a growing recognition of the intrinsic value within the market, independent of monetary policy shifts.

Ultimately, Nadji’s insights provide a nuanced understanding of the current commercial real estate landscape. While challenges persist, particularly in segments like urban office spaces, there are bright spots emerging, fueled by resilient property fundamentals and evolving investor strategies. As the market continues to adapt to changing economic conditions, navigating storm clouds while capitalizing on opportunities will be crucial for industry stakeholders.

In conclusion, the conversation with Hessam Nadji serves as a valuable resource for anyone seeking to understand the complexities of the commercial real estate market in today’s dynamic environment.

The post Video: Hessam Nadji discusses bright spots and challenges in commercial real estate appeared first on Hawkins Commercial Realty.

Michael Stern pays $61M for Brickell site of Dolce & Gabbana supertall

As questions swirl about the future of Michael Stern’s Brooklyn supertall, the developer appears to be all in on Miami. Stern’s JDS Development Group paid $61.2 million for the half-acre site at 888 Brickell Avenue, where the firm plans a Dolce & Gabbana-branded condo-hotel tower, property records show. A company tied to Grupo Mezerhane, led by Mashud Mezzerhane…

New Renderings Revealed For Miami Tower Vying To Be Among Florida’s Tallest

The 70-story Okan Tower, which dwarfs all of Florida’s current skyscrapers, is being built at 542 N. Miami Ave., four blocks from the Kaseya Center. The tower, which is slated to deliver in 2027, will have a 316-key hotel and 236 short-term rental condos both with Hilton branding, 163 traditional condos and 64K SF of office space. The tower is the first U.S. development…

Related Group and GTIS Partners Announce Collaboration with Viceroy on 45-Story Brickell Condo Tower

Real estate leaders Related Group and GTIS Partners, in partnership with the luxury hospitality company Viceroy, have announced the development of Viceroy Brickell – The Residences (Viceroy Brickell). Located at 77 Southeast 5th Street in Miami’s Brickell neighborhood, this 45-story tower, already under construction, was initially envisioned as a rental project but has since…

ASG Equities Sells Retail Property in Miami’s Design District for $14M

New York City-based ASG Equities has sold a 4,500-square-foot retail building located at 70–74 N.E. 40th St. in Miami’s Design District. Dacra acquired the property… for $14 million. The transaction marks the final step for ASG’s three-property portfolio that it has sold in recent months, the others being buildings at 80 and 101 N.E. 40th St. The company is actively developing…

Gindi’s ASG sells another Miami Design District building to Craig Robins and partners

A partnership led by Craig Robins continues expanding its market share in the Miami Design District, buying another retail building from the Gindi family’s ASG Equities. An affiliate of Miami Design District Associates acquired 70 and 74 Northeast 40th Street for $14 million, a press release states. The buyer is a joint venture between Robins’ Miami-based Dacra, L Catterton Real Estate…

Apple’s Coral Gables office hub becomes year’s biggest lease deal in Miami-Dade

Coral Gables continues to welcome world-recognized brands as Apple moves in The Plaza Coral Gables. “I think what’s exciting about Apple is that it is an expansion project,” said Mark Trowbridge, president and CEO of the Coral Gables Chamber of Commerce. “This comes on the heels of FIFA bringing their corporate headquarters here, which is a relocation project…

Fleischer Studios for fabled cartoons may be labeled historic

Local preservationists are working to secure historic designations for two 20th century landmarks to showcase and preserve Miami’s history for future generations. Today (4/25), the Miami City Commission is to review resolutions highlighting the historic significance of the Halissee Hall Gates and the Fleischer Studio. If approved, the measures would pave the way for…

Multinationals influx spurs Coral Gables economy

Coral Gables is gearing up for a bustling spring and summer season with events to promote local businesses and the influx of major multinational corporations such as FIFA, Ryder and Apple into the city. Nearing its 100th anniversary next year, Coral Gables is home to over 10,000 businesses and continues expanding as an international business hub. In preparation for…

Grupo Frali buys Edgewater dev site to complete full block assemblage

Grupo Frali purchased a development site in Miami’s Edgewater to complete a full block assemblage, but the firm doesn’t have any immediate plans for a project. An affiliate of Grupo Frali, a private investment firm based in Buenos Aires, Argentina, acquired a 20,240 square-foot vacant lot at 3047 Biscayne Boulevard, a press release states. With its purchase, Grupo Fali now…

Piece by piece, Coral Gables’ historic city hall restored

With an estimated $4 million of Coral Gables city funds allocated this year to restore city hall, next up are to replace windows and seal the exterior walls. Since city hall is a historic building, there is a process for every step and the different phases of renovations, said Vice Mayor Rhonda Anderson. “My last update on this was about three weeks ago when I said it takes four months…

Coral Gables’ mobility hub is immobile

Coral Gables city officials and the administration are still trying to find ways to soften the exterior and allocate the liability costs for the long-planned Coral Gables Mobility Hub. The last item regarding the mobility hub that was brought to the commission focused on its façade, Mayor Vince Lago said. “The mobility hub is expected to enhance our city’s revenue, with commercial…

Oak Row Equities Officially Breaks Ground On 2600 Biscayne Boulevard In Edgewater

Oak Row Equities has broken ground on 2600 Biscayne Boulevard, a 41-story tower in Miami’s Edgewater neighborhood that will offer a mix of multifamily residences and office spaces. Coastal Construction Group is tasked as the project’s general contractor. The design is spearheaded by the internationally acclaimed architecture firm Arquitectonica, with interiors by Portland…

Atlantic Pacific Cos. Breaks Ground on Affordable Housing Complex ‘Culmer Place’ at 800 NW Fifth Avenue in Miami

Atlantic Pacific Cos. has broken ground on Culmer Place, an affordable housing complex in Miami-Dade County. Florida YIMBY first reported on the multi-million-dollar project in March 2022. The seven-story building will offer 239 units, ranging from one-bedroom to five-bedroom layout plans. Residency would be available for those making 30 percent to 80 percent of the area…

After yearslong litigation, former lender wins lawsuit tied to Miami Design District dev site

A former lender of the failed project at the entrance to the Miami Design District and Midtown Miami won in court this week, likely closing the door on years of litigation surrounding previous plans for the property. Miami-based HES Group had planned to develop the site into Triptych Miami, a 475,000-square-foot project with a hotel, retail space, offices and parking…

Tecnoglass plans new Morningside HQ after acquiring dev site

Tecnoglass has big plans for a new headquarters in Miami’s Morningside after acquiring a shovel ready development site. An affiliate of Tecnoglass, an industrial glass manufacturer that last year moved to Miami from Barranquilla, Colombia, acquired a 0.6-acre assemblage at 5101 and 5125 Biscayne Boulevard, according to records and real estate database Vizzda.

Haimov lists Miami Gardens site for $25M, abandoning development plans

Haimov Group is listing a Miami Gardens development site for $24.5 million, after abandoning plans for a $200 million mixed-use project. Miami Beach-based Haimov, led by Igal and Aaron Haimov, is looking to sell a 3.6-acre vacant property at 17300 Northwest Seventh Avenue Road, a listing obtained by The Real Deal shows. Aaron Haimov did not immediately…

UHealth’s Largest Outpatient Medical Facility Tops Off at SoLé Mia In North Miami

UHealth—University of Miami Health System has announced the topping off of its largest outpatient medical facility, UHealth at SoLé Mia. This facility, addressed as 2111 Sole Mia Way, is part of the 184-acre master-planned community in North Miami, developed by Oleta Partners, a joint venture between developers LeFrak and Turnberry. Robins & Morton is the general contractor.

Foundation Pour Is Complete For 70-Story Okan Tower At 555 North Miami Avenue In Downtown Miami

Foundation pouring is complete on the site of Okan Tower, a 70-story mixed-use skyscraper under construction at 555 North Miami Avenue in downtown Miami. International property developer Okan Group recently celebrated this significant milestone for their highly anticipated development, which is set to become the area’s next major mixed-use megaplex. The 36-hour…

‘Palma Miami Beach Residences’ Set for 666 71st Street in Miami Beach

Construction could start on Palma Miami Beach Residences later this year. The 14-story condo would comprise 126 furnished units, with most one-bedroom and two-bedroom floorplans measuring 405 to 886 square feet. The South Florida Business Journal reports that there would also be multiple penthouses––some reaching 1,342 square feet. Communal amenities at Palma Miami…

The Gallery at West Brickell with 465 Apartments Topped Off, Being Painted

The Gallery at West Brickell has topped off and is being painted. Developer Related Group says on its website that the tower will be a “Class-A” mixed-income, mixed-use, and transit-oriented development located in the heart of Brickell. Groundbreaking for the project took place in September 2022. It is the the largest single-phase public/private project in the county…

Evictions surge at Hialeah’s luxury apartment projects Shoma Village, Pura Vida and Manor

Residents in predominantly working-class Hialeah are feeling the squeeze from soaring apartment rents, and some are getting slapped with evictions, following a wave of high-end multifamily construction in the city. The development spree has led to a surge in rent, now ranging from $2,050 for a studio to $3,765 for a three-bedroom unit, pricing out residents in the city where…

$100M The Julia Residences in Allapattah Reaches Completion, Already 35% Leased

The Julia Residences has received its TCO and the first residents have moved in. The $100 million, 14-story residential tower was developed by Lissette Calderon’s Neology Life Development Group. The Allapattah development includes 323 apartments, amenities, and 13,000 square feet of street-level retail space. A total of 25 residents moved in on day 1, and more than 35%…

Office Tower Inspired By The World’s Top Luxury Hotels Launching In Miami

Aman, Rosewood, Oetker and Four Seasons Hotels & Resorts, as many luxury travelers know, are regarded as the top ultra-luxury hotel brands in the world with exquisite rooms, unbending service and amenities that get more over-the-top by the day. Now, a developer in Miami, Robert Rivani, the founder and CEO of the commercial investment firm Black Lion, has plans…

Rishi Kapoor’s Miami Beach co-living project dev site heads to auction

A Miami Beach property where Rishi Kapoor planned a co-living condo project will be sold at auction. Miami Federal Judge Jacqueline Becerra on Monday authorized the hiring of auctioneer Lamar Fisher and his eponymous firm to sell two commercial buildings at 1234 and 1260 Washington Avenue owned by an affiliate of Urbin, a subsidiary of Location Ventures, the Coral Gables…

Tijuana Flats Closes Nine South Florida Locations After Bankruptcy Filing

Central Florida-based restaurant Tijuana Flats has announced it is filing for bankruptcy and has closed 11 of its restaurants, including a whopping nine of them in South Florida. According to a press release, the Tex-Mex brand has brought in new ownership, Flatheads LLC, with a plan of “revitalizing its restaurants and reinvigorating the customer experience.” The release notes…

51-Story Downtown Miami Tower Gale Hotel & Residences Opening Soon

Get ready for hundreds more short and long-term residents in Downtown Miami, with the 51-story 601 Miami tower said to be opening shortly. Stayntouch, which provides hotel property management software, said in a press release yesterday that the 688-room Gale Miami Hotel and Residences is planned open on May 1. As of this morning, rooms are available on Booking.com…

JLL Secures $100M Loan for Warehouse Portfolio in South Florida

JLL has secured a $100 million loan for a nine-property warehouse portfolio spanning 824,546 square feet in South Florida. Jim Cadranell, Gregory Nalbandian, Michael Lachs and Jimmy Calvo of JLL arranged the seven-year, interest-only loan through Nationwide Mutual Insurance Co. on behalf of the borrower, Seagis Property Group LP. The assets in the portfolio include…

Black Lion Pays $63M for Miami Beach Office Building

Black Lion Investment Group has made its first office acquisition in Miami Beach, Fla., purchasing The Lincoln at 1691 Michigan Ave. for $62.5 million, with plans to redevelop the mixed-use property into a luxury office concept it’s calling ‘Class X.’ The seller was Clarion Partners, according to CommercialEdge data. Black Lion Investment Group plans to transform The Lincoln…

Iconic Moore Building in Miami’s Design District Reopens With New Restaurant and Members-Only Club

The iconic Moore building in the Miami Design District, which was built in the 1920s, is officially reopening with a new modern American restaurant, Elastika, a members-only club, a boutique hotel, and more. Helmed by acclaimed Executive Chef Joe Anthony and brought to life by WoodHouse, the modern American restaurant is located on the first floor of the Moore building and…

Privee Capital plans 12-unit waterfront condo in North Beach

Privee Capital plans a 12-unit waterfront condo project in North Beach, marking continued residential development appetite for the neighborhood. The Miami Beach-based development firm will build a five-story building on a 0.8-acre lot at 1940 Bay Drive in Miami Beach, according to Scott Alcus, managing partner at Privee. Designed by Revuelta, the building will include…

Lease roundup: Rosetta Bakery with a speakeasy on tap at Standard-branded condo in Midtown Miami

Rosetta Bakery will open an Italian Bakery Café and cocktail bar at The Standard Residences, Midtown Miami. The restaurant leased 2,500 square feet next to the lobby and 1,200 square feet of outdoor terrace space at the building that’s under construction at 3100 Northeast First Avenue in Miami, according to a news release from the tenant and one of the developers.

Interview: Mandarin Oriental’s Christian Glauser Benz On Expansion Plans And The Rise Of Branded Residences

Christian Glauser Benz has traveled to more than 120 countries in his career managing the strategic growth of some of the best-known luxury hotel brands. He joined Mandarin Oriental Hotel Group in January as the firm’s head of development for the Americas after stints at Hyatt Hotels Corp. and Dream Hotel Group. He saw the pandemic as a transformative moment…

Downtown Miami’s Future Shines Bright with Financing for Parking Garage Redevelopment

Concord Summit Capital LLC recently arranged $20-million in senior financing to refinance the Bayfront Parking Garage, an operating six-story parking garage with 753 spaces located at 255 NE 1st Street, Miami, FL 33131. Concord Summit’s Managing Director Justin Neelis from the firm’s Miami office sourced the loan on behalf of the owners, Artifact Group and Blutrich…

$2.5 Billion Bond Postponed by Mayor Daniella Levine Cava

Alittle more than two months after Miami-Dade County Mayor Daniella Levine Cava floated a $2.5 billion general obligation bond (GOB) referendum during her State of the County address to pay for a series of expansive projects, she’s had a change of heart. The mayor recently announced her decision to postpone those ambitious plans after running into too much opposition…

South Florida industrial vacancies rise in the first quarter

South Florida industrial landlords may see a slowdown on the horizon, as vacancies crept up across the tri-county region in the first quarter, according to a CBRE report. Demand in Miami-Dade County is growing at a slower pace, dropping to 2.1 million square feet in the last 12 months, well below a five-year average annual absorption rate of 4.5 million square feet…

This Week’s South Florida Deal Sheet: Amazon Warehouse Sells For $106M

A 1M SF Amazon fulfillment center near Jupiter was acquired for $106.5M by the investment firm founded by Ross Perot, the late billionaire who ran for president in 1992. Dallas-based Hillwood, the commercial real estate arm of Perot Co., acquired the property through a subsidiary from an entity controlled by Truist Securities, property records from the data intelligence…

Starwood sells four office buildings in Miramar at a loss for $45M

Starwood Capital Group sold an office portfolio in Miramar for $45 million, marking a 45 percent discount off its purchase price nine years ago. YMP Real Estate Management bought the pair of Miramar Centre I and III buildings at 3401 and 3601 Southwest 160th Avenue, as well as the pair of Huntington Centre I and II buildings at 2901 and 2801 Southwest 149th Avenue…

Starwood Sells Miramar Office Buildings At 45% Discount

Starwood Capital Group sold a four-building portfolio of offices outside Fort Lauderdale for $45M, just more than half of what it paid to acquire the buildings nearly a decade ago. Starwood sold two buildings in Miramar Centre, including 3601 SW 160th Ave., and two in another office park. A joint venture between YMP Real Estate Management and three entities tied to Nathan…

Estate wins approval to build 353 apartments in Davie, including affordable housing

South Miami-based Estate Companies advanced its ongoing expansion into Broward County, winning site plan approval in Davie for a 353-unit apartment building with an affordable housing component. The Davie Town Council last week approved the site plan for Soleste Reserve I, as well as a developer agreement with Estate that mandates deed restrictions requiring below-market…

Developer proposes 978-unit apartment complex on Fort Lauderdale mobile home park

A developer wants to build a 978-unit apartment complex at the Pan American Estates Mobile Home Park in Fort Lauderdale. Saulo Perez, a South Florida-based real estate developer, proposes the project on the 22.8-acre mobile home park at 150 Northwest 68th Street in the Cypress Creek neighborhood, according to city records. The Fort Lauderdale Development Review Committee…

Acclaimed Architect Renzo Piano Unveils First Concept Design for The Center for Arts & Innovation In Boca Raton

The Center for Arts & Innovation has unveiled its initial vision for a forthcoming, globally revolutionary creativity and innovation hub in Boca Raton designed by the widely acclaimed Renzo Piano Building Workshop. Renzo Piano, a Pritzker Architecture Prize-winning Laureate, selectively undertakes two to three new commissions worldwide each year, emphasizing the…

Venture One pays $36M for three Boynton Beach warehouses

Venture One Real Estate paid $36.2 million for a trio of Boynton Beach warehouses. Through an acquisition fund, an affiliate of Rosemont, Illinois-based Venture One purchased Boynton Logistics Center, an industrial complex at 1200, 1210 and 1220 Southwest 35th Avenue, records and real estate database Vizzda show. The buyer obtained a $50 million mortgage from…

Related Companies Breaks Ground on South Flagler House At 1355 South Flagler Drive in West Palm Beach

Related Companies held a groundbreaking ceremony on April 17 for South Flagler House, an unparalleled luxury residential development in the Palm Beaches. The development features exquisite design by the renowned Robert A.M. Stern Architects (RAMSA), interiors by the acclaimed firm Pembrooke & Ives, and spectacular waterfront views. Located along the Gold Coast…

Morgans Restaurant Relocates to Allapattah After 14 Years in Wynwood

Beloved modern comfort food restaurant Morgans, known for its brunch, is relocating from its Wynwood location to a restaurant space in Allapattah. The family-owned restaurant, which has been serving brunch staples from its Wynwood patio since 2010, will move from its purple home in Wynwood to a larger location in Allapattah at 2800 NW Seventh Ave. on Wednesday, April 24.

Steve Ross’ Related wins bid to build $300M West Palm convention center hotel

Billionaire Steve Ross’ Related Companies won the bid to build West Palm Beach’s next convention center hotel. New York-based Related will build a $300 million 20-story, 404-key Hilton Signia on the site at 900 South Rosemary Avenue, the Palm Beach Post reported. Related estimated the hotel could be completed in three years, according to the publication. The hotel will add…

The Breakers wins approval for courtyard renovation

The Breakers, Palm Beach’s historic oceanfront resort, won approval for the renovation of a central courtyard, the last site on the property in need of major restoration work. The Town of Palm Beach Landmarks Preservation Commission approved plans to update the 16,000-square-foot Mediterranean Courtyard at its meeting last week. Renovations will include adding a 1,800…

Questions & Answers About Distressed Commercial Properties

Distressed commercial properties are under-performing assets that pose significant challenges to owners from a physical and financial point of view. Whether they’re run down, obsolete properties or they’re simply producing a negative cashflow every month, distressed properties can be great investment opportunities. Having said that, investing in distressed properties…

Video: Foodservice Results CEO Darren Tristano Discusses Restaurants and Real Estate 2024

The Conversation: Navigating the Current Landscape of the Restaurant Industry In a recent episode of *America’s Commercial Real Estate Show*, show host Michael delved into the current state of the restaurant industry with CEO Darren Tristano of Foodservice Results. Their insightful conversation provided valuable perspectives on the trends, challenges, and…

Video: Blackstone Sends ‘Takeoff’ Signal With Big Commercial Property Deal

Blackstone’s $10 Billion Real Estate Deal: A Shift in Market Dynamics In a move signaling confidence in the property market, Blackstone recently closed a significant deal worth approximately $10 billion for another apartment landlord with its purchase of Apartment Income REIT.  This transaction underscores the real estate giant’s strategic decision to deploy capital amid changing…

U.S. Industrial Leasing Plunges Nationally In Q1 As ‘Recalibration’ Continues

Industrial users in the U.S. slammed the brakes on leasing in the first quarter, deepening a slowdown that is likely to continue for the remainder of the year. Net absorption reached 28M SF nationwide in Q1, a roughly 70% drop from a year earlier, driving the vacancy rate up to 6.7% from 4.5% last year. But industrial brokers aren’t worried. In fact, they realize their position…

With $191B To Spend, Blackstone Thinks Real Estate Has Hit Bottom

Blackstone sees a recovery in the commercial real estate market coming and is acting accordingly, making major investments in the sector, most notably in multifamily rentals. But the shift in outlook about when interest rates might begin to come down has somewhat tempered spending of the firm’s $191B of dry powder. “The recovery will not be a straight line, but we’re not…”

Apparel Retailer Express Inc. To Close 100 Stores In Bankruptcy

Fashion retailer Express Inc. has filed for Chapter 11 bankruptcy protection, according to a filing with the Securities and Exchange Commission on Monday, and says it will close more than 100 of its 530 locations. The company said it is closing about 95 of its Express locations and all 12 of its UpWest stores, while the remainder of its locations will remain open for normal…

Blackstone Flags Retail Property Investment Opportunity As Big Brands Put Focus Back On Stores

When more than 800 international retailers gathered in Paris last week at the World Retail Congress, their to-do lists were overflowing with a raft of new issues and challenges, many of which barely existed even two years ago. But major investors like Blackstone are buying property again, and that centuries-old route to market, the shop, is seeing a renewed focus. Top of the in-tray…

Optimizing your multifamily portfolio with agency lending

There’s no shortage of multifamily investment strategies, including long-term holds, quick turnarounds and value-add investments. Regardless of the strategy multifamily investors choose, it’s critical that they optimize their portfolios to get the best results. Portfolio optimization, defined. Commercial real estate portfolio optimization is the process of evaluating operations…

How low? LNR buys San Francisco office building for 11% of 2018 price

LNR Partners has snagged a 90,500-square-foot office building in San Francisco with a winning auction bid of $6.56 million — or 10.5 percent of its last traded price. An affiliate of the Miami-based investor took control of the 16-story Hewes Building at 995 Market Street, in Mid-Market, the San Francisco Business Times reported. The seller was Bridgeton Holdings…

The post Miami Commercial Real Estate News April 24, 2024: Brickell Dolce & Gabbana Dev Site Trades for $60M; Miramar Office Properties Sold at 45% Loss; More… appeared first on Hawkins Commercial Realty.

The Conversation: Navigating the Current Landscape of the Restaurant Industry

In a recent episode of *America’s Commercial Real Estate Show*, show host Michael delved into the current state of the restaurant industry with CEO Darren Tristano of Foodservice Results. Their insightful conversation provided valuable perspectives on the trends, challenges, and opportunities facing both restaurant operators and landlords in today’s market. Discussions include trends for food service labor, rent-to-revenue ratios, areas for growth in the industry, performance trends, expanding brands, concepts to be cautious of, and tips for both landlords and restaurant operators. This discussion is national in scope, providing insights into the commercial real estate sector nationwide, specifically retail restaurant properties. Given the non-local scope, observations may be less relevant or entirely irrelevant to restaurant properties in Miami or South Florida at large.

Resilience Amidst Economic Shifts

Darren Tristano began by highlighting the resilience of the restaurant industry, noting its ability to weather economic downturns and continue growing. Despite challenges such as inflation and high gas prices affecting disposable income, consumer interest in dining out remains strong. Tristano pointed out that while traffic to restaurants has remained relatively flat, it hasn’t declined significantly, indicating stable demand for dining experiences away from home.

Restaurant Rental Revenue Ratios and Market Trends

Michael and Tristano discussed rental revenue ratios, with Tristano suggesting a likely downward trend due to increased pricing at restaurants. Although nominal sales may rise, real growth remains minimal, making it challenging for landlords to raise rents significantly. Tristano emphasized the importance of understanding market trends and consumer preferences, particularly the growing demand for off-premise dining options such as delivery and drive-through services.

Thriving and Struggling Restaurant Segments

Tristano identified the segments of the restaurant industry that are faring well and those facing challenges. Limited-service restaurants with drive-throughs and efficient delivery options are experiencing growth, while full-service establishments are working hard to adapt and recover. Brands offering value-oriented menus, such as Taco Bell and Dunkin’, are expanding, while mainstream casual dining chains like Red Lobster and Applebee’s are facing closures due to oversaturation and changing consumer preferences.

Opportunities for Landlords and Developers

From a landlord’s perspective, Tristano stressed the importance of understanding the restaurant landscape and partnering with operators for long-term success. He advised landlords to assess the fit of potential tenants with the surrounding market and to consider factors such as traffic patterns and demographics. Building strong relationships with restaurant operators and offering flexible leasing options can lead to mutually beneficial outcomes.

Future Growth and Stability

Looking ahead, Tristano expressed optimism about the industry’s stability, citing a potential easing of inflation and lower gas prices that could boost consumer spending. He highlighted the success of chicken-focused brands like Chick-fil-A and Raising Cane’s, as well as the potential for innovative concepts to thrive in diverse settings such as cruise lines and schools.

Conclusion

As the restaurant industry continues to evolve, collaboration between operators and landlords will be essential for navigating challenges and seizing opportunities. By understanding market dynamics, adapting to changing consumer preferences, and fostering strong partnerships, both parties can thrive in today’s competitive landscape.

The insightful conversation between the show host and Foodservice Results’ CEO provided valuable insights into the nuances of the restaurant industry, offering practical advice for stakeholders looking to succeed in this dynamic market.

About Foodservice Results

Foodservice Results, headquartered in the Chicago market, is a prominent market research and consultancy firm spearheaded by Darren Tristano, former President of Technomic. Leveraging extensive expertise in the foodservice industry, the company specializes in delivering tailored solutions for restaurant operators, foodservice suppliers, distributors, and related organizations.

Utilizing a blend of consumer and market research, Foodservice Results offers clients a data-driven approach to comprehensively grasp industry dynamics and identify growth prospects. With a network of industry professionals spanning various domains, the firm provides unparalleled insights from seasoned experts, ensuring clients benefit from a wealth of knowledge and experience.

Exclusive studies conducted by Foodservice Results include:

1. 2020 Future of Fast Casual: This study offers a five-year forecast for sales and unit growth in the fast-casual segment, furnishing actionable insights crucial for strategic planning and competitive analysis.

2. 2020 Leading Restaurant Chain Industry Report: Providing an in-depth analysis of the top 1,000 chain restaurants in the United States, this report offers invaluable insights into industry trends and performance metrics.

3. 2019 Off-Premise 5-Year Study: Focused on understanding consumer attitudes towards takeout, delivery, and catering, this study provides essential insights into evolving consumer preferences and behaviors in the off-premise dining space.

The post Video: Foodservice Results CEO Darren Tristano Discusses Restaurants and Real Estate 2024 appeared first on Hawkins Commercial Realty.