Feb 13, 2025
Half Price Books has been struggling to find a replacement for its 6,000-square-foot warehouse in the Minneapolis-St. Paul area for over a year due to a lack of small warehouse spaces. Despite a rise in overall warehouse availability, the vacancy rate for spaces under 100,000 square feet remains low at 3.9%, making it difficult for businesses needing smaller facilities. Developers have prioritized constructing larger warehouses over 100,000 square feet, leaving a gap in the market for smaller spaces. As a result, Half Price Books has resorted to temporary storage and is now considering alternative regions for warehouse space while seeking ways to optimize its storage needs.
Feb 13, 2025
Florida’s new condo safety law, SB 4D, enacted after the 2021 Surfside collapse, mandates inspections and full funding for repairs in aging condos. However, Republican lawmaker Mike Caruso warns that the increased costs could force elderly, fixed-income residents out of their homes, potentially leading to a rise in homelessness. While Governor Ron DeSantis and other lawmakers acknowledge the law’s unintended consequences, no amendments have been made yet. Florida’s 2025-2026 budget includes over $600 million for home risk-mitigation programs, including grants to help condo owners manage the financial burden.
Feb 3, 2025
In the fourth quarter, U.S. commercial real estate prices improved for large-dollar deals in major markets, while smaller transactions in secondary markets either stabilized or slowed their decline. The increase in high-value deals was accompanied by rising transaction volumes, reaching a two-year high of 4,538 sales totaling $35.53 billion. Industrial property prices rose across both large and small markets, while other sectors showed mixed performance. Investment-grade sales, comprising 63% of the quarter’s deals, surged 25.1% year-over-year, with an average deal size of $7.44 million. Regionally, price trends were mixed, but overall conditions improved compared to previous quarters.
Jan 30, 2025
AT&T has sold over 13 million square feet of underutilized real estate to Reign Capital for more than $850 million in a sale-leaseback deal. The transaction involves 74 central offices across 23 states, which were originally built for outdated copper networks but are now only 35% utilized due to the shift to fiber and wireless systems. This strategic move allows AT&T to streamline its real estate portfolio while maintaining operational control of necessary spaces and securing a share in future redevelopment revenues. The deal, which closed on January 8, 2025, is part of AT&T’s plan to exit most of its legacy copper network operations by 2029 and serves as a model for future real estate transactions.
Jan 22, 2025
Advance Auto Parts has engaged Hilco Real Estate to sell over 200 of its stores and leases across 46 states, as part of a strategy to downsize its physical footprint. This portfolio includes both owned properties and leased locations, which range in size from 3,000 to 48,000 square feet, and are situated in urban areas and strong commercial corridors. The move follows Advance Auto’s announcement in November to close more than 700 stores and four distribution centers to improve profitability amid declining sales. Hilco will market these properties for sale individually, together, or in combinations, with offers being accepted until March.
