CBRE income falls nearly 10%
As large office tenants continue to delay their leasing plans, CBRE’s income has dropped almost 10%, down to $245 million, between July to September. As a result, the world’s largest real estate service company has cut some of their staff to reduce expenses. However, the firm continues to see stable revenue stream from other services, such as property management. The overall liquidity of the firm also remains high with $1.4 billion in cash, allowing for attractive acquisition, should an opportunity come up.
New York Rents Fall 15.3% Since March
In October, New York apartment rents dropped an additional 2.8% compared to last year, increasing the total reduction to 15.3% since March this year. This is the second fastest decline among the 50 largest U.S. cities. Marty Burger, CEO of Silverstein Properties argues that “New York City itself is hurting right now on the multifamily side because the offices aren’t filled, and the companies aren’t demanding that their people be here. The folks that are filling those seats don’t feel a need to be in the city.”