immobiliare

Prada Buys Building on Fifth Avenue in New York for $425 Million

By Columbus International,20 December 2023

The renowned Italian fashion house, Prada, announced the acquisition of the building housing its current store on Fifth Avenue in New York for a substantial $425 million. Since 1997, Prada had been leasing the five-story space at 724 Fifth Ave. and executed the purchase using internal resources in cash.

Prada emphasized the strategic significance of the property’s location, citing its increasing rarity and long-term potential as key factors in the decision. The 12-floor building, beyond serving as a retail space, holds the potential to offer office premises and storage facilities for the Hong Kong-listed company, according to the company’s statement.

Notably, New York’s Fifth Avenue holds the title of the world’s most expensive retail street, as indicated by a global ranking by real estate services firm Cushman & Wakefield. Despite robust growth in the Asia Pacific, Japan, and European markets, Prada faced challenges in the wider Americas region this year, with retail sales experiencing a 1.3% decline in the first nine months.

Source: The New York Post

Yves Saint Laurent Unveils Major Leather Atelier in Scandicci

By Columbus International,18 December 2023

An abandoned building formerly owned by the Agenzia delle Entrate now in the portfolio of Cdp Real Asset, becomes the new “home” of Yves Saint Laurent’s leather goods in Scandicci, in the heart of the Florentine luxury handbag district. In close proximity to the manufacturing facilities of Gucci, Prada, Montblanc, and Dior, the Saint Laurent Atelier Maroquinerie has been inaugurated, encompassing 28,000 square meters dedicated to product development, modeling, prototyping, material and technical research, cutting, production, and storage for handbags, luggage, and small leather goods. The investment of €30 million, made by Cdp to transform the disused building into a bright and functional production facility with a view of the hills, has enabled YSL to lease it for 15 years, extendable up to 27, with a purchase option. Currently, 500 people (with an average age of 37 and 53% women) work in the atelier, including 200 hired in the last two years. Another 200 employees are expected to be recruited by 2025, as explained by Francesca Bellettini, President and CEO of YSL and responsible for brand development for the entire Kering Group. The French fashion house defines the structure as a “center of excellence” for the high level of expertise concentrated here, but also a “center of competence” because it houses a company school to train artisans and technicians, becoming a strategic channel for future employment needs.

Saint Laurent was the flagship brand of the Kering Group in 2022, with a turnover of €3.3 billion (+31%), but is experiencing a slowdown in 2023 (-12% at comparable rates in the third quarter). “This center will play a vital role in the development of Saint Laurent, which generates 70% of its revenue from leather goods,” declared Bellettini while cutting the ribbon alongside the President of the Tuscany Region, Eugenio Giani, the Mayor of the Metropolitan City of Florence, Dario Nardella, the Mayor of Scandicci, Sandro Fallani, and the CEO of Cdp Real Asset, Giancarlo Scotti. “Here, creativity will be able to express itself to the fullest – added the manager – also because we are in a territory with a very long tradition in leather goods, which has allowed us to achieve these results.” Cdp expressed great satisfaction with the project, emphasizing that it embodies the mission of revitalizing disused buildings and areas. President Giani and Mayor Nardella recalled the historical, political, and industrial relations between Italy and France, while Mayor Fallani highlighted a redevelopment goal that few believed in a few years ago: giving life back to a public building, known as “Il Palazzaccio,” built 30 years ago and never used.

Source: Il Sole 24 Ore

Milan Real Estate Market: Slowdown in Residential Transactions in the Second Half of 2023

By Columbus International,29 November 2023

The residential property transaction performance index highlights a sudden slowdown in the Milan real estate market in the second half of 2023. The main drivers can be attributed to decreased demand compared to previous semesters, attributed to the increased difficulty for buyers in accessing credit. This is evident from the 3rd Real Estate Market Observatory 2023 by Nomisma regarding the real estate market in the Lombard capital.

In the first half of 2023, according to Nomisma, the residential market in Milan experienced a significant setback, with only 12,490 transactions compared to 15,600 in the first half of 2022 (-20%). This decline in transactions has partially affected the dynamics of prices for new and used properties, with a still present but significantly reduced growth compared to the previous semester. In the second half of 2023, prices for new and renovated homes experienced a slowdown (-0.6% on a semi-annual basis), despite an annual increase of +1.7%. The average discount percentage on the initial asking price (around 3-4%) remains stable, confirming a significant decrease compared to used properties. The sector of used properties shows a positive performance, with an increase in average prices of +1.3% on a semi-annual basis and +3.3% on an annual basis. The average selling times for used homes range from 3 to 4 months, maintaining an average discount of 8-9%.

These figures occur in a market context characterized by limited supply elasticity. Regarding rentals, the demand for rental homes in Milan continues to grow in the second half of 2023. Rental rates show a positive change (+2.9% on a semi-annual basis), with an annual increase of 4.7%. The average gross rental yield remains stable at 4.8%. On average, it takes about 2 months to complete a rental transaction, although properties with desirable features may remain on the market for only a few days. Nomisma’s survey suggests that approximately 50% of agency-managed demand is oriented towards purchase transactions, supported by a mortgage in 73% of cases. The demand pressure on the rental market is increasing due to the gradual increase in mortgage interest rates, on one hand, and the growing number of residences shifted to the short-term rental market on the other. In the first half of 2023, the transaction activity of retail offices in Milan experienced a significant year-on-year decline of around -33%, with only 430 properties exchanged in the market, compared to 652 in 2022 and 671 in 2021. In the second half of 2023, average prices continue to rise for the fourth consecutive semester, with positive changes both on a semi-annual basis (+1.2%) and on an annual basis (+2.9%), despite a negative result for properties located in business districts. Average discounts remain stable in attractive areas (9-11%) on a semi-annual basis but increase in the suburbs (14%). The average rental rates have been increasing since the first half of 2022, with an average annual growth rate of +1.2%.

The context remains stable for absorption times, both for sales (6 months) and rentals (4-5 months). The average gross annual rental yield remains almost stable at 5.1%. In the first half of 2023, the volume of retail store transactions in the Milanese market experienced a slight year-on-year decline (-2.6%). In the retail sector, the average price trend continues to rise on an annual basis (+1.8% semi-annually). The absorption speed decreases progressively for more central locations, with average selling times of 4-5 months in the city center and 6-7 months in the suburbs. The average discount on the asking price increases slightly (9.5%), remaining the lowest among major cities and the only one in single digits. In the rental sector, average rental rates increase slightly on a semi-annual basis (+1.3%). The market shows fast absorption times (3-4 months), slightly longer in the suburbs. Average gross annual yields remain almost stable at 6.7%.

Diptyque Paris Unveils Expansive Flagship Store on Madison Avenue, New York City

By Columbus International,27 November 2023

On December 1st, Diptyque Paris will reveal its new flagship store on Madison Avenue, in the heart of New York City, just in time to kick off the holiday season. With two floors and a spacious 2,100 square feet, this space is poised to become a beacon of real estate elegance. Highlighting the strategic importance of the United States as the brand’s leading global market in terms of sales, Julien Gommichon, President of the Americas for Diptyque Paris, emphasized the necessity of establishing a strategic presence with a local flagship store. The store showcases the entire range of Diptyque products, including candles, home and personal fragrances, home decorations, and bath and body products. While specific details about annual sales and brand growth were not disclosed, Gommichon revealed that 40% of Diptyque Paris sales come from the retail sector, expressing optimism that the new flagship store will become a robust revenue engine.

The National Candle Association reports that about 35% of candle sales occur during the holiday season, further underscoring the strategic opportunity of the store opening. Gommichon envisions the flagship store as a space for immersive experiences, with ample room to offer exclusive services and customization options such as engravings and stamps. He emphasized that enhanced experiences and services will be more prominent and accessible to customers in the flagship store. In addition to the extensive product offerings, the flagship store will provide additional services to enhance the customer experience. These include personal shopping, personalized education on fragrance layering, a fragrance refill station, and professional gift-wrapping services. VIP customers can even reserve a private dining room-style area to host exclusive parties and events.

The trend of luxury brands opening flagship stores in the United States has been a significant theme in 2023. Joining the ranks of renowned brands, Diptyque Paris positions itself with this expanded flagship store on Madison Avenue. The new store is twice the size of its original location on Madison Ave., which closed in May for renovations, presenting a more traditional storefront. The impact of Covid-19-related lockdowns on consumer behavior is evident in the renewed focus on home aesthetics and premium products. Diptyque Paris has seen an increase in demand for personal fragrances in the post-Covid period, constituting approximately 40% of the brand’s sales. Notably, the brand has championed non-gendered fragrances since its founding in 1961, a trend that has gained broader acceptance only in recent years.

As the holiday season approaches, Diptyque Paris is poised to capitalize on the anticipated increase in consumer spending. According to the National Retail Federation, holiday sales for 2023 are expected to increase by 3-4% year over year, reaching an impressive range between $957.3 billion and $966.6 billion, a yearly record. Jessie Dawes, Chief Marketing Officer of the Americas for Diptyque Paris, outlined the promotional strategy for the flagship store, including a city-wide out-of-home (OOH) campaign in New York City, paid social media ads, and an opening celebration scheduled for late November. The combination of strategic timing, a prime location, and an engaging shopping experience positions the Diptyque Paris flagship store to make a significant impact in the competitive real estate landscape.

Source: Glossy

Office Crisis: WeWork Files for Bankruptcy as the US Market Struggles with Space Reduction

By Columbus International,25 November 2023

Transforming the office landscape with an injection of flexibility is a challenge faced with courage. However, it is the burdensome rigidity of lease agreements with major property owners that has led WeWork, the American giant of shared office spaces, to file for bankruptcy under Chapter 11. Since the onset of the pandemic, the office market in the United States has failed to recover. A scenario of vacant square meters and declining rents, which WeWork’s case threatens to exacerbate. The leadership of WeWork assures that this situation is confined to the US and Canada market (the company has 777 locations in about 40 countries and does not affect Italy), but, as stated in the application filed by the company, it will result in the termination of over 40 lease contracts in New York alone.

According to the latest Jll Office Report Q3 – source: Sole 24 Ore – office leasing in the US has decreased by 35% since 2019, with rents falling by 6%. In September, compared to the same month in 2022, defaults on loans for office buildings tripled to around 6%. The net absorption of office spaces decreased by 1.7 million square meters in the third quarter, bringing the total loss of office space to over 4.7 million square meters in just one year. On a quarterly basis, the vacancy rate increased by 39 basis points to 21%, and in just one year, construction began on only 730,000 square meters of new office space, which, in perspective, will mean a lower supply of new and high-quality products compared to demand (with corresponding price pressure). “WeWork – as George Schultze, founder of Schultze Asset Management Llp, wrote in Forbes – is an extreme example, but there is now much concern in the commercial real estate market in general. Banks and insurance companies have financed loans to investors who used a minimal share of their own capital when interest rates were very low, expecting them to remain low for a long time. Now that short-term rates are above 5%, many investors are in trouble, and many lending institutions will take a hard hit when buildings are revalued under current market conditions.”

According to Moody’s, this will have a negative impact on cash flows and market office values, increasing negative sentiment and making refinancing more difficult in the next 12-18 months. According to Nareit (the American Association of Real Estate Investment Trusts), compared to 2015, the market value of offices in publicly traded real estate investment trusts has dropped from 14% to 4%. Although fund managers, as shown by Jll data, note that demand for prime offices, i.e., new high-end spaces (strategic locations, zero emissions, innovative materials and spaces, services such as green areas, restaurants, gyms), remains healthy, albeit subdued. Rents have also increased by an average of 4% since 2019. However, as emphasized by Nareit, these are indeed innovative but “traditional” offices: “Coworking will remain, but it will be a niche.” Perhaps. But opinions diverge here. “Post-pandemic hybrid work is prompting tenants to reduce spaces,” explains Jose Pellicer, Global Head of Investment Strategy at M&G Real Estate, “but the situation in the US is different from in Europe. In the United States, the return rate is 50%, in Europe, it’s 75%, driven by factors such as smaller homes and shorter commuting times.”

“The case of WeWork has raised questions about the future of flexible offices,” wrote Julie Whelan, Global Head of Occupier Thought Leadership at Cbre. However, our recent survey among companies using them indicates a growing demand for flexible lease agreements to meet increasingly relevant space planning scenarios. Therefore, we believe that WeWork’s difficulties are largely attributable to its business model, which tied it to long-term lease commitments made before the pandemic, while simultaneously facing significant costs in a context of sharply rising interest rates. In the latest Bloomberg Market Live Pulse survey, 65% of investors believe that the US office market will only begin to recover after hitting rock bottom; two out of three expect this recovery to occur in the second half of 2024.

Lawsuit Alleges Conspiracy to Inflate Real Estate Commissions in Manhattan

By Columbus International,20 November 2023

On Monday, a legal action was initiated, accusing the Real Estate Board of New York (REBNY), along with over two dozen brokerages and companies, of collaborating to artificially boost commissions paid to agents involved in the sale of residential real estate in Manhattan. This proposed class action against the REBNY trade group, the Corcoran Group (HOUS.N), Douglas Elliman (DOUG.N), and others, comes in the wake of an October 31 verdict by a federal jury in Missouri, awarding home sellers $1.78 billion in a parallel case against the National Association of Realtors and multiple brokerages. The potential impact of this verdict, which a judge could triple to exceed $5.3 billion, has the potential to disrupt long-standing practices mandating sellers to pay commissions to buyers’ brokers.

The National Association of Realtors (NAR) is currently facing at least two other similar proposed class actions. In the federal court lawsuit filed on Monday in Manhattan, Monty March, the plaintiff, asserted that commissions on Manhattan residential sales persist at a stable 5% to 6%, even as home prices skyrocket, reaching an average apartment price exceeding $2 million by early 2022. March argued that sellers using REBNY’s listing service should not be obligated to pay 2.5% to 3% commissions to buyers’ brokers, especially when compared to lower commissions in “fully competitive” markets such as Brooklyn, where negotiations occur separately and average around 1%. REBNY’s General Counsel, Carl Hum, stated that the group is currently reviewing the complaint with its legal team and expressed confidence that the practices and procedures of its listing service “abide by all relevant laws.”

As of now, Corcoran and Douglas Elliman have not responded to requests for comments. March claimed to have paid inflated commissions when he recently sold property on Manhattan’s Upper East Side, with property records revealing the sale of an apartment for $5.6 million in July 2022. Commencing January 1, REBNY will mandate sellers, rather than their brokers, to directly remit any commissions to buyers’ brokers, aiming to enhance “transparency and consumer confidence in the residential marketplace.” March expressed uncertainty about whether this change would lead to lower commissions or potentially cause delays in sales as buyers’ brokers negotiate with sellers. The lawsuit seeks damages for sellers of Manhattan residential property over the past four years who paid buyer brokers’ commissions under REBNY rules.

Source: Reuters

Jeff Bezos’ bold move: Miami beckons as he leaves Seattle behind (Source: People)

By Columbus International,3 November 2023

The Amazon Titan, Jeff Bezos, is trading the rain-soaked Pacific Northwest for the sun-drenched allure of Miami’s real estate scene. The 59-year-old tech mogul made a splash on Instagram when he unveiled his plans to relocate to Miami in the near future. In his social media announcement, Bezos shared a nostalgic clip from the early days of Amazon, reflecting on his roots in Seattle. “Seattle has been my home since 1994 when I started Amazon out of my garage,” he fondly reminisced. Notably, Bezos revealed that his father, Miguel Bezos, played the role of the cameraman in the video, adding a personal touch to the post.

“My parents [Miguel and Jacklyn] have always been my biggest supporters. They recently moved back to Miami, the place we lived when I was younger (Miami Palmetto High class of ’82 — GO Panthers!).” Bezos went on to explain the driving force behind his upcoming relocation, stating, “I want to be close to my parents, and [fiancée] Lauren and I love Miami.” He also highlighted the shifting focus of his aerospace company, Blue Origin, towards Florida’s Cape Canaveral. While expressing his deep attachment to Seattle, Bezos acknowledged the bittersweet emotions surrounding the move. “As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart.” In the video clip from 1994, a young Bezos guided a tour of Amazon’s early headquarters in his three-bedroom Seattle home. The scene showcased a cluttered yet promising office space filled with papers, books, fax machines, and dated computers. Bezos humorously quipped, “That’s about it. It doesn’t take long to tour the offices of Amazon.com.”

This monumental decision to relocate follows Bezos’ recent acquisition of a luxurious seven-bedroom mansion on a private island in Miami’s Biscayne Bay. The opulent property, nestled on a man-made island, was secured in September for an impressive $79 million, according to Bloomberg. This purchase came on the heels of Bezos’ earlier acquisition of a neighboring home in June, which he acquired for $68 million.

Together, these two properties span approximately 1.8 acres on the exclusive Florida island, marking a significant footprint in Miami’s real estate landscape. Before embarking on this real estate adventure, Bezos took another significant step in his personal life when he proposed to his girlfriend, Lauren Sánchez, in late May. Friends close to the couple expressed their excitement, describing it as “her dream come true.” Bezos and Sánchez made their relationship public in 2019, following Bezos’ divorce from his wife of 25 years, MacKenzie. Miami is now poised to be the backdrop for the next chapter in Bezos’ extraordinary journey.

Source: People

South Florida’s Real Estate Boom: A Magnet for Investment and Migration

By Columbus International,1 November 2023

We are witnessing a real estate boom in South Florida. In the heart of Miami, spaces are being cleared for the construction of the tallest office tower in Florida, with 1.5 million square meters set to house companies that previously had no presence in the state. St. Regis and Waldorf-Astoria branded condominium towers are also in the works. Even though their completion is still a way off, many of the yet-to-be-built units have already been reserved with substantial deposits from buyers.

A similar situation is occurring further north in West Palm Beach, where the arrival of financial giants like Goldman Sachs and Blackrock has driven office lease rates to record levels in the second quarter of this year. Now, new workplaces with private terraces and yacht rental access are rising along the city’s waterfront, while developers plan condominiums for future employees. “We have four or five thousand people coming to West Palm Beach who aren’t here yet,” said Nick Bienstock, CEO of New York City office landlord Savanna. Eager to play its part in this market, Savanna is making its first investment in Florida, a 275-unit condominium called Olara, part of the 3,000 new homes currently in development throughout West Palm Beach. Over three years since the start of a massive migration of money and people to the Sunshine State, Florida’s real estate market continues to outperform nearly all others in the United States. What began as a refuge from cold weather and pandemic restrictions has transformed into a place that not only welcomes the current influx of professionals but also aims to double the number of future arrivals.

“The old Florida of the 1980s is disappearing,” said Ken H. Johnson, a real estate economist at the Florida Atlantic University College of Business. “We are no longer receiving those retirees with fixed income who used to come. We are getting people with significant incomes, and they usually bring work and employment with them.” In fact, according to a recent report by financial consultant SmartAsset, Florida is the number one destination for professionals aged 25 to 36 earning at least $200,000. But the most crucial data is that in recent years, high incomes coming to Florida outnumber those leaving by a three-to-one margin. Along with the young and jobs, newcomers also bring liquidity, buying homes in a state that has far too few. The result is a market that continues to excel on nearly every superlative list. For example, out of the ten most overvalued real estate markets in the country, seven are in Florida, according to a monthly analysis co-published by Professor Johnson. This means that Florida buyers are paying the highest premiums for their homes nationally compared to price averages over the last 27 years.

The median home price in Miami rose by 14.6% in August compared to the previous year, according to the brokerage Redfin, and by 5.3% in nearby Fort Lauderdale, where the downtown population has increased by 80% since 2010. These peaks come just as other “boom cities” of the pandemic era experience continuous declines: home prices in Phoenix fell by 2% in August, Fort Worth dropped by 2.7%, and Austin, which ranked last on Redfin’s price growth list, fell by 7%. And this is the good news: these numbers follow double-digit corrections in Phoenix and Austin just a few months earlier. “Texas is different from Florida even though both are identified as states without income taxes,” said Eli Beracha, director of the Hollo School of Real Estate at Florida International University.

“Florida is seen as a tropical vacation destination – where you can also live. People don’t vacation in Dallas.” During the pandemic, Florida recorded the largest wealth migration flow in the United States. In 2021 alone, new arrivals increased the state’s taxable income by $39.3 billion, more than triple what Texas, the second-place state, did, according to the Economic Innovation Group, a Washington, D.C.-based think tank. Census data released in September suggests that this growth will continue: Florida’s population increased by 2.13% – the largest jump in the U.S. – between 2021 and 2022. “Florida is undergoing a reset and restructuring in a way that no one else is doing,” said Jonathan Miller, president of real estate appraisal company Miller Samuel. What sets this current cycle apart is “that all of this is happening without a huge amount of international demand” that fueled Florida’s previous real estate and demographic booms. So, what’s fueling it now?

“New Yorkers are the new foreign buyers,” Miller said, referring to the nearly 130,000 Empire State residents who moved to the Sunshine State in 2021 and 2022 alone. Many of these new residents split their time between cities, making Florida their primary residence, free from income taxes. Not surprisingly, there is a boom in furnished condominium construction in Miami designed for easy renting while owners are away. Florida has an obvious appeal for northerners. Tired of the issues of large cities such as crime and quality of life shortcomings, and drawn to the tax benefits and beachfront home offices, the state offers a ready-made solution to many of America’s urban problems.

“It’s just a different way people choose to live, and Miami is a big beneficiary of that,” said Nitin Motwani, managing partner of Miami Worldcenter Associates, the master developer of the 27-acre, $6 billion Miami Worldcenter district spanning 10 blocks of the city. Motwani has revealed that he regularly receives calls from executives seeking logistical assistance in relocating south. “Sometimes it’s just things like ‘Where should we look?’ Other times, it’s about discussing talent or ‘Can you put me in touch with another high-level person who has relocated?'” he said. According to news reports this year, the top schools in the Miami area have become so crowded that billionaire newcomers are literally writing million-dollar “charity” checks to secure spots for their children. From every perspective, Florida’s real estate market is exceeding expectations. While this may be good news for investors, the lack of affordable properties has become a concern for “policy makers” who are seeking to incentivize the development of more affordable apartments. A recent report by the Florida Policy Project revealed that over a million residents across the state spend over 50% of their income on housing. Rising homeowners insurance premiums only make matters worse.

According to a recent study by the Florida Apartment Association, Florida will need approximately 500,000 new housing units by 2030 to contain costs and meet future demand. Not surprisingly, Florida’s housing shortage has translated into some of the highest price increases in the nation. Since 2019, the median price of homes and condos in Miami has risen by 64%, according to Miller Samuel. This is compared to a 14% increase in Los Angeles and a 1.2% decrease in Manhattan during the same period. Even outside of Miami, price gains have been robust, with a 62% increase in Boca Raton and a 59% increase in Delray Beach. In the Palm Beach area, rich in finance, residential property has been fueled by the pandemic, with a 141% increase since the second quarter of 2019, according to Miller Samuel. While prices are beginning to stabilize, at least five homes for over $50 million have already been sold this year, including a $155 million complex sold by the widow of Rush Limbaugh. “Forty years ago, Palm Beach was a place where elderly people went for their final years, and today it absolutely isn’t anymore,” said Bienstock of Savanna.

Similar to residential developers, commercial real estate investors are contributing to the continued dominance of South Florida’s real estate, investing over $63 billion in the region’s three counties in 2021 and 2022, according to MSCI Real Assets data. In Miami, New York companies Related Cos and Swire Properties are making a high-profile bet that both human and economic capital migrations to Miami are both permanent and ongoing. They are currently constructing One Brickell City Centre, the tallest office tower in Florida, with 1.5 million square feet and a height of 1,000 feet, in downtown. Developments like One Brickell are crucial for Miami’s continued growth. Corporate relocations increased by 33% last year, while the total assets managed by financial firms in Miami rose to $390 billion in August 2022, up from $75 billion in 2019, according to the Miami Downtown Development Authority.

“The lack is represented by quality office spaces, and that’s the gap we’re trying to fill,” noted David Martin, senior vice president for retail and commercial leasing of Swire’s U.S. operation. In fact, office vacancies stood at just 10.4% in the second quarter of this year in Miami-Dade County, according to Colliers, compared to the historical high of 17.8% in Manhattan and over 30% in San Francisco. Additionally, the city center is now more easily accessible to Boca Raton and Palm Beach thanks to the new $6.2 billion Brightline high-speed rail service. Several other New York developers – from real estate titan Harry Macklowe (who once owned the GM Building), to Chrysler Building owner Aby Rosen, to the Upper East Side condo kings of the Naftali Group – are all planning their debuts in Florida. “There is still a migration of people,” says billionaire developer Richard LeFrak, who has more than doubled his South Florida staff since the pandemic hit. “It’s not as dramatic as it was during COVID, but it’s still a steady flow.”

Source: New York Post

Trump Looks for Information Regarding the Future of His Family’s New York Real Estate Holdings (Wall Street Journal)

By Columbus International,11 October 2023

According to The Wall Street Journal, Donald Trump’s legal team has sought clarity from New York State Supreme Court Justice Arthur Engoron regarding a ruling that could potentially strip the former president of control over part of his real estate empire.

Justice Engoron recently ruled in a civil case brought by New York State Attorney General Letitia James, stating that Trump and his company had committed fraud by falsely valuing his properties. This ruling could significantly impact the Trump family’s business entities, potentially affecting hundreds of entities, including real estate assets like Trump Tower. The judge has ordered the cancellation of legal certificates that permitted these entities to conduct business in New York and instructed both parties to identify a receiver to oversee their dissolution.

This decision could also affect trial proceedings set to begin on Monday, where further allegations of fraud will be addressed. Trump’s lawyers have sought clarification on the ruling’s impact, including whether affected properties will be sold or managed by the receiver. James’ lawsuit alleges that Trump inflated his net worth by falsely valuing his properties, potentially impacting his ability to obtain favorable bank loans. In addition to canceling business certificates, James has sought $250 million in penalties. Trump has accused James of pursuing him for political reasons, arguing that asset valuations are subjective and that no one suffered financial harm.

Canceling business certificates is a drastic remedy, typically reserved for cases involving illegal enterprises or fraudulent schemes. The ruling effectively bars Trump from transacting business in New York, potentially affecting his financial interests within the state, though the fate of his out-of-state assets connected to New York-based corporate entities remains unclear. Despite its potential financial impact, Trump’s business focus has shifted away from New York over the last two decades, emphasizing deals in other states and countries.

Many New York buildings bearing the Trump name have been renamed due to his policies and persona’s unpopularity among New York voters. The Trump Organization’s last significant deal in New York City was a hotel and condominium development in Soho, which underwent a name change in 2017 amid controversy.

Italian Real Estate Market in September 2023: Milan Takes the Lead with Over €5,300 per Square Meter (Immobiliare.it)

By Columbus International,3 October 2023

In September 2023, the average cost per square meter to purchase a house in Italy stands at €2,122. However, if we consider Milan, prices soar to over €5,300 per square meter.

These figures have been revealed by the monthly Observatory of the Italian real estate market by Immobiliare.it Insights, pertaining to property transactions in September 2023. There are no significant variations in house sale prices across the entire national territory.

The national difference is 0.2% compared to the previous month (3.2% compared to the same period last year), with a slight variation between the Northern regions (0.6%) and the Central-Islands area (-0.2% and -0.1%). The average price per square meter on a national level reflects vastly different scenarios. While in the Central-Northern regions, prices comfortably exceed €2,000 per square meter, in the South and Islands, they stabilize between €1,300 and €1,500.

In August, there was a nearly 9% drop in real estate supply in all regions, particularly in the Northwest and Center with a -10%. In September, the situation changed drastically, with a national average growth of over 9.1%. The areas that had experienced a significant decline the previous month are the ones that show the most recovery: Northwest (+10.5%) and Center (+10.1%), followed by the South (+8.1%), Northeast (+6.9%), and Islands (+6.5%). A similar trend is observed in demand: in August, due to seasonality, there was a sharp decline, while in September, there is a recovery, with peaks of 25.2% in the Northwest. The national average surpasses 20%, precisely 21.3%.

Demand is growing everywhere, albeit less markedly in the Islands, where it stands at 8.2%. Average rental prices show a trend towards stability, with slight increases in both major cities (+0.4%, at €3,250 per square meter) and smaller centers (+0.2%, at €1,797 per square meter) – the latter being those with fewer than 250,000 inhabitants. The most noticeable aspect emerges when analyzing demand and supply: there is a clear difference between major cities and smaller centers. In cities, there has been a rush in sales contracts, with a demand growth of 33.4% compared to August, although there is a decline of -4.1% compared to the same period last year. In smaller centers, there is an increase of 11.6% (-0.3% compared to September 2022). Simultaneously, supply has also expanded: +20.8% in centers with over 250,000 inhabitants and +6.4% in those below this threshold.

Milan reaffirms itself as the most expensive city in Italy. To purchase a property, one would need €5,301 per square meter. This is the first time that the €5,300 threshold has been surpassed, given that in August, the price was €5,271 per square meter. Bolzano secures the second spot with €4,657 per square meter, slightly lower than the €4,684 per square meter in August, followed by Florence with €4,125 per square meter (compared to €4,130 in August). Among provincial capitals, Catanzaro is the least expensive, at €988 per square meter.