S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
The vacancy rate of life sciences space in the US stood at 10.6% in the third quarter, up 1.5 percentage points from the previous quarter, according to CBRE.
The sharp rise in vacancy was attributed to 2.5 million square feet of new space delivered during the period, 45% of which were preleased.
Among the 13 metropolitan areas tracked by CBRE, Chicago had the highest vacancy at 42.4%.
Lab and research and development space saw almost 1.5 million square feet of negative net absorption in the third quarter.
The San Francisco Bay Area saw the largest negative net absorption at 751,538 square feet. Meanwhile, the Chicago market tallied the largest positive net absorption at 74,697 square feet.
CHART OF THE WEEK: US REIT capital offerings in September up month over month
⮞ US equity real estate investment trusts secured $2.20 billion in capital in September, up from $702.3 million received in August.
⮞ On a year-over-year basis, the amount of capital raised plunged 48.5% from $4.26 billion in September 2022.
⮞ American Tower Corp. secured the largest amount of capital in September, after selling two sets of unsecured notes worth $750 million each.
Business strategy
– Medical Properties Trust Inc. is exploring divestiture and joint venture opportunities, as well as secured debt financing options to raise capital for the reduction of its revolving credit facility balance and repayment of other maturities. The company said it expects to raise roughly $2 billion in new liquidity over the next 12 months.
– Advertising REIT Outfront Media Inc. agreed to sell its Canadian business, Outdoor Systems Americas ULC, to Bell Media Inc. for C$410 million in cash, subject to adjustments. The division operated over 9,000 digital displays as of Dec. 31, 2022. The deal is expected to close in 2024, subject to regulatory approval and other closing conditions.
Blackstone moves
– Blackstone Inc. has written down its entire stake in the Playa District office complex in Los Angeles and is now talking to lenders about what to do with the property, Bloomberg News reported, citing a person with knowledge of the matter. The property was once valued at $583 million, according to the report.
– The private equity giant paid roughly $137 million for four industrial properties near Chicago O'Hare International Airport, The Real Deal reported. The seller was CenterPoint Properties Trust.
– Blackstone provided a $78.3 million loan to help finance Apollo Global Management Inc. and Newbond Holdings' acquisition of the Renaissance New York Times Square Hotel, Commercial Observer reported. Sherwood Equities sold the 317-key hotel for $165 million.
See key people moves in North America real estate.
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