In the dynamic landscape of commercial real estate, December 2023 witnessed a series of significant developments shaping the industry's future. From the launch of Makarora by ex-Blackstone executive Chad Pike to the potential upheaval in the U.S. office market and the multifamily sector's shift towards affordable housing, last month's top stories underscore the diverse challenges and opportunities unfolding in capital markets.
Capital Markets
December 5, 2023 Ex-Blackstone Real Estate Executive Launches New Investment Fund
Chad Pike, a former Blackstone executive and 25-year industry veteran, has founded Makarora, a new investment fund focused on U.S. private debt and equity transactions as well as public market opportunities.
December 12, 2023 Investors Bank Billions, Setting Up CRE Secondary Spending Spree
Major investors like Goldman Sachs and Blackstone are betting on 2024 to be a year of investment opportunities in secondary markets.
Banks are expected to feel the burn of the troubled office market this year, with $80B in potential losses.
Multifamily
TikTok is allowing renter fraud to gain steam across the country, with tenants getting virtually approved for apartment units, refusing to pay rent and moving out in the midst of the eviction process.
After a boom over the past few years, multifamily construction has come to a halt — with developers setting their sights on affordable housing.
Democrats are looking to introduce legislation that would force major corporations such as BlackRock and FirstKey Homes from buying up single-family homes and turning them into rental properties. If the ‘End Hedge Fund Control of American Homes Act’ were to be enacted, these firms would have to sell their portfolios within the next 10 years.
Office
December 19, 2023 D.C. Area Surpasses San Francisco As 'Ground Zero' Of Office Distress
It’s estimated that 72% of office loans in Washington, D.C. are in danger of going into default, compared to San Francisco’s 71%.
Restaurant
December 6, 2023 Ghost Kitchens Begin To Fail As ‘Pandemic Buzz’ Wears Off
Once estimated to be 20% of the restaurant sector by 2025, ghost kitchens, or delivery-only restaurants, have been struggling to survive.