Key commercial real-estate deals and trends to watch: data centres are red hot, and studio space investment is booming

Katie Warren/Business InsiderWe have the latest news on commercial real-estate deals, analysis, and trends.

The pandemic threw the real-estate world into disarray, as people emptied out of offices, hotels, and malls and worked from their homes. That disruption has transformed how people and companies finance, operate, and occupy real estate.

Some big firms like WarnerMedia have been rethinking office needs — and some commercial real-estate deals were put on ice as financing dries up. Coworking and flex-office firms are struggling under big rent obligations after years of rapid growth.

Still, some companies like IBM and Facebook have been pushing ahead with plans for big office spaces, showing that it may be too soon to call and end to the office. Apple has been in talks to grow a Manhattan office that it leased earlier this year. And Amazon Music has signed on for 40,000 square feet in Williamsburg, Brooklyn, to use as production and recording space.

A surge in e-commerce, meanwhile, is fuelling demand for warehouse and cold storage space as companies look for new ways to reach customers. Life-sciences companies are fuelling a big boom in demand for lab space. A surge in streaming content consumption and cloud data needs has made studio spaces and data centres red-hot real estate plays.

And with the pandemic increasing the amount of food delivery and hurting restaurants’ bottom lines, ghost kitchens see an opportunity to grow.

Here’s the latest news on how real-estate markets are being upended, and how experts think these markets will play out in the long run.

Latest real-estate news

Here’s how Goldman Sachs, KKR, and Blackstone are pouring billions into data centres, a hot real-estate play that’s chasing a boom in cloud storage and streaming content

Watching tv snackiStock / Getty Images PlusGoldman said it would invest $US500 million into data-centre spaces around the globe.

Advertising and PR giant Dentsu is the latest corporate tenant to cast off glitzy NYC offices as more companies rethink their footprints

Jacki kelley dentsu ceoSlaven Vlasic/Getty ImagesDentsu is seeking to sublease a glitzy new office space it leased late last year on Manhattan’s West Side.

AT&T is putting WarnerMedia’s huge NYC headquarters under review and could decide to cut hundreds of thousands of square feet of office space

WarnerMedia StankeyGetty ImagesAT&T is conducting a strategic review of WarnerMedia’s 1.5 million-square-foot headquarters at 30 Hudson Yards, sources told Business Insider.

Studio space is a red-hot real estate play as demand for streaming content surges, and insiders say Brookfield could be the next big investor to pile in

Lovecraft country hboHBOGeorgia has had success attracting tentpole films such as ‘Avengers: Infinity War’ and ‘Black Widow’ and big-budget shows such as HBO’s ‘Lovecraft Country.’

Booming demand for lab space is a rare bright spot for real-estate developers. But a steep learning curve means some ‘stupid money’ investors could get burned.

Chemistry labHinterhaus Productions/Getty ImagesLife science has accounted for 10% of leasing activity in the US by square footage since the coronavirus hit.

IBM is hunting for a 500,000 square foot NYC office as tech tenants continue to double down on deeply-discounted workspaces

IBMAndrei Stanescu/Getty ImagesIBM released a request for proposals to the New York City real estate market in search of an office up to 500,000 square feet in size.

Remote work has shaken up energy costs for office landlords and employees. Here’s a look at why both are paying more and how one provider is working with corporates to offset workers’ higher electricity bills.

Work from home kids interrupt Berlin, Germany - April 06: Symbol photo on the subject of home office. A woman sits at her desk at home and works. A child is playing next to her on April 06, 2020 in Berlin, Germany. During curfew and quarantine due to the coronavirus, COVID-19, SARS-CoV-2, many employees are forced to work from home. Parents are double burdened and have to look after their children additionally.Thomas Trutschel/Photothek via Getty ImagesEven with workers at home, most office buildings can only shut down so much. At most, office buildings are using 25% less energy than usual.

Inside the rise of real-estate titan David Simon, the country’s top mall-owner facing a make-or-break moment with a $US2 billion bet on troubled JCPenney

David simon profile 2x1Mireya Acierto/Getty Images; Samantha Lee/Business InsiderSimon Property Group CEO David Simon is trying to reinvent retail real estate.

Facebook scored a $US100 million break on its blockbuster NYC office deal, and it could mark the start of a wave of discounts as vacancies soar

Vornados Farley Building renderingVornado Realty Trust.Here’s just how much Facebook is paying in rent at the Farley Building.

Giant mall owner Brookfield Properties is ditching its worst locations and redeveloping what’s left into ‘mini cities’ that blend shopping with residential space

Brookfield place new york brookfield properties empty mallSpencer Platt/Getty ImagesThe strategy is a continuation of Brookfield’s redevelopment of malls that were previously owned by GGP, which the firm acquired in 2018.

Hotel lenders are racing to dump risky loans as the hospitality industry nears a breaking point, with defaults stacking up and high-profile properties starting to shutter

Empty times squareJohn Nacion/NurPhoto/Getty Images)Mack Real Estate Credit Strategies, a New York-based specialty lender, is offering mortgages totaling $US503 million that are connected to three hotel properties, the Manhattan at Times Square Hotel and two St. Regis hotels in Washington DC and Miami.

What top investors and dealmakers are saying

Tech office deals

Restaurants and ghost kitchens

Hotels and casinos

Student housing

Warehouses and logistics

Brick-and-mortar retail space

State of the commercial real-estate market

Coworking, coliving, and short-term rentals

The future of real estate

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