Many Tenants Are Holding Off on Long-Term Decisions for Their Office Needs
According to Jeff Eckert, president of U.S. office agency leasing with real estate services firm JLL, most office tenants continue to wait on the sidelines while considering when, how and where to bring back their employees. Further, he believes that the return to offices will take longer in urban centers as employees continue to be resistant to using public transportation. Office leasing activity throughout the US continues to be 47 percent below the level prior to the pandemic and of those that did take place the majority were short-term lease renewals. The future of the office sector continues to be unstable.
Blackstone, Starwood to Acquire Extended Stay for $6B
The two investment firms structured a 50/50 joint venture to buy Extended Stay America for $19.50 per share, a 23.3% premium over the 30-day average stock price and a total valuation of $6 billion. The acquisition fits very well into Blackstone’s investment theme that travel and leisure will return quickly with the rollout of COVID-19 vaccines. Tyler Henritze, head of US acquisitions for Blackstone Real Estate says “We have confidence in the extended stay model. We helped create this company nearly twenty years ago, and believe our expertise puts us in a unique position to add long-term value.”