🏛️ Federal property sales scaled back from 440 to just 8
👑 Park Avenue defies office market trends
🏭 Blackstone’s bold move in European industrial real estate
📚 Courses on capital raising, selling into CRE, LP investing & more

Data Viz of the Week: State GDP Growth

Did your state grow last year?

If you live anywhere other than North Dakota, South Dakota, or Iowa, it did! 2024 GDP by state data was released last week, with Arkansas, Utah, and South Carolina taking the top spots. But California also showed surprising strength, with a 3.4% growth rate beating both Texas and Florida.

Upcoming Thesis Driven Courses & Classes

Sharpen your real estate IQ on capital raising, selling into real estate owners, developing local real estate projects, and more.

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• April 7: Fundamentals of CRE (💻 Online): A bootcamp providing an insider’s view of “a day in the life” of key industry stakeholders, with real-world insights and applications - Sign up

• April 14: Selling Into Real Estate Owners (💻 Online): A bootcamp for people selling technology and products into the real estate industry - Sign up

• April 14: Fundamentals of Real Estate Entrepreneurship (💻 Online): A first-person POV simulation for aspiring RE entrepreneurs to learn to source, underwrite and finance a local real estate project - Sign up

• April 29 & 30: Fundamentals of Capital Raising (🗽Live in NYC): Insider’s guide to raising capital for real estate projects & platforms–from individuals, family offices and institutional investors - Sign up

• May 5 Fundamentals of Capital Raising (💻 Online): Insider’s guide to raising capital for real estate projects & platforms–from individuals, family offices and institutional investors - Sign up

Three Articles We Loved from Last Week

It’s not easy keeping up with everything. Here are three articles we loved from the past week that you may have missed:

1. (WSJ) Trump Administration Slashes Number of Federal Buildings for Sale in New List

   The Trump administration has reduced the number of federal buildings slated for sale from an initial list of 440 to just eight properties across several major cities. This decision follows criticism of the previous approach, which was deemed hasty and disorganized. The General Services Administration (GSA) is now accepting nonbinding bids on these properties, totaling 2 million square feet and selected due to their high operational costs. The GSA aims to save $430 million annually by selling surplus properties, even at potentially lower prices than market expectations, partly justified by the pandemic’s impact on office values. Further property disposals are anticipated to proceed more gradually

2. (WSJ) In Today’s Upended Office Market, the Park Avenue Mystique Endures

   • Despite challenges in the broader office market, Manhattan’s Park Avenue continues to command high rents and attract major companies. The area’s enduring appeal is bolstered by its prestigious reputation and the presence of prominent firms like Blackstone and Citadel. Recent investments in new buildings and renovations, such as the developments at 350 and 175 Park Avenue, further enhance its desirability. The extension of Long Island Rail Road service and Midtown’s rezoning have also contributed to its sustained allure. While office vacancies have risen elsewhere, Park Avenue’s vacancy rate has decreased to 8.9%, outperforming the overall Manhattan rate and invigorating local retail businesses

3. (Financial Times) Blackstone raises bid for Warehouse REIT as property dealmaking heats up

   Blackstone, the world’s largest commercial property investor, has made a final bid to acquire Warehouse REIT for £489 million, offering 115p per share. This follows four previous bids and represents a nearly 40% premium over the share price before the takeover process was publicized. The move comes amid a decline in real estate values due to increased interest rates and reduced investment. European industrial and logistics properties have been particularly affected, leading private capital groups, especially from the US, to capitalize on the market downturn

Developer of the Week: Realty Capital Management

Irving, Texas-based Realty Capital Management is moving forward with a massive entertainment district in the Dallas suburb of Flower Mound. The district will be part of of a larger development, Lakeside, taking shape on the shores of Grapevine Lake northwest of Dallas.

The development will eventually feature 40 stores and restaurants, 1,297 multifamily units, 61 condos, and 165,000 square feet of office space.

You can read more about Realty Capital on the Thesis Driven GP database here.

Know about a developer doing something cool that we should feature? Reach out to [email protected] with the tip!

—Brad and Paul