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Unveiling the Pinnacle: Time Out’s Picks for the Finest Global Cities in 2024

By Columbus International,24 January 2024

In the realm of entertainment, where cities often take on the role of the main character in beloved TV shows and movies, and serve as the muse for countless songs and artworks, New York City stands out as an iconic destination. Time Out, a prominent media company, has recognized this by naming New York City as the best city for 2024. Drawing insights from the perspectives of around 20,000 city-dwellers globally, as well as input from its network of writers and editors, Time Out curated a list of the world’s best cities.

Criteria such as the culinary scene, architectural marvels, and cultural vibrancy played a crucial role in the evaluation. Time Out aims not only to inspire travel but also to offer a global snapshot of city living. New York City secured the top spot, with its plethora of museums and a thriving theater scene being highlighted as contributing factors. The city’s international reputation also played a significant role, as it was deemed the most desirable location for relocation by city-dwellers worldwide. Claiming the second position on Time Out’s list is Cape Town, South Africa, a city described unanimously by survey respondents as “beautiful.” Its enchanting blend of sea, cityscape, and majestic mountains contributes to its allure. Time Out commended Cape Town for its rich cultural offerings, including late-night museum events, theater, comedy shows at Theatre on the Bay, and the newly opened Time Out Market Cape Town. Despite the accolades, Katy Scott, a Cape Town native now residing in France, emphasizes the city’s contrasts. While praising its unpretentious coastal charm, Scott acknowledges that many of its attractions may not be accessible to the majority of citizens due to persistent inequality.

To gain a deeper understanding of the city and its people, Scott recommends venturing beyond the tourist bubble and exploring sites like Robben Island and the District Six museum, both endorsed by Time Out for their engagement with South Africa’s apartheid history. Time Out’s top five cities also include Berlin, Germany (celebrated for its vibrant nightlife), London, UK (recognized for legendary pubs and free museums), and Madrid, Spain (applauded for exceptional dining and drinking experiences). Notable smaller cities in the top 10 include Liverpool, UK (ranked 7th), and Porto, Portugal (ranked 10th), the latter being lauded for its romantic ambiance according to survey respondents. Grace Beard, Time Out’s travel editor, highlighted the common thread among all the cities on the list—a strong community spirit and an undeniable vibe.

Resurgence in Big Apple Retail: A Beacon of Hope Amidst Economic Challenges

By Columbus International,23 January 2024

In the face of the pandemic’s challenges, New York City’s retail sector has not only weathered the storm but has emerged stronger than ever. Unlike many other segments of the city’s commercial market, retail has experienced a remarkable resurgence, with owners seizing opportunities to lease prime spaces at reduced rates and shorter terms, triggering a notable revival. Gene Spiegelman of Ripco remarked, “We’ve seen a fairly healthy amount of recovery, with rents down by an impressive 50%.” This decline in rental costs has sparked a feeding frenzy for well-located spaces, particularly benefiting vacant restaurants and luxury fashion fronts. A noteworthy transaction in this revitalized landscape is Dolce & Gabbana securing the unique former Hermès store at 695 Madison Ave. Similarly, Prada made a significant investment, paying $835 million to retail tycoon Jeff Sutton for a building at 724 Fifth Ave., along with the adjacent structure at 720 Fifth Ave., formerly dominated by Abercrombie & Fitch. Jeff Sutton had initially planned a slender new tower in the area next to the Aman Hotel in the Crown Building. However, it remains uncertain whether this development will proceed as originally envisioned.

The positive momentum in the retail sector is further complemented by favorable changes in mortgage rates. Since November, mortgage rates have been on a downward trend, aligning with a decrease in the 10-year Treasury yield—a crucial factor influencing loan pricing. The easing of these rates reflects optimism that inflation has cooled sufficiently for the Federal Reserve to consider interest rate cuts later this year. Currently, the average rate on a 30-year home loan stands at 6.6%, according to Freddie Mac. While this rate is lower than in previous weeks, it remains significantly higher than the 3.56% recorded just two years ago. This disparity has contributed to a limited inventory of previously occupied homes on the market, dissuading homeowners from selling due to the contrast in interest rates. Despite the easing of mortgage rates, existing home sales experienced a 1% decline in December compared to the previous month, reaching a seasonally adjusted annual rate of 3.78 million—the slowest sales pace since August 2010, according to the National Association of Realtors (NAR). Sales for December fell by 6.2% from the previous year, falling short of economists’ expectations. Lawrence Yun, Chief Economist at NAR, expressed optimism, stating, “The latest month’s sales look to be the bottom before inevitably turning higher in the new year. Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.” In the midst of economic uncertainties, the resilience and resurgence of the Big Apple’s retail sector stand as a beacon of hope, signaling potential positive shifts in the real estate landscape as the new year unfolds.

West Village Claims Title for New York City’s Priciest Real Estate, Says The Wall Street Journal

By Columbus International,17 January 202417 January 2024

According to The Wall Street Journal, the West Village, located along the Hudson River in lower Manhattan, exudes the charm of old New York, and homeowners are willing to pay a premium for it. In December, the neighborhood’s 10014 ZIP Code claimed the title of the city’s most expensive residential real estate based on median price per square foot, reaching $2,366, as reported by Realtor.com (operated by News Corp, owner of The Wall Street Journal).

The high cost per square foot in this ZIP Code is attributed to the fact that much of the limited housing stock, spread across approximately 0.57 square miles, is located in a historic district. The Landmarks Preservation Commission reviews and approves any demolition of existing structures and new construction, keeping the housing supply relatively low, explains Jared Barnett, a real-estate agent and co-founder of Compass’s the Barnett-Bittencourt Team. He emphasizes that the scarcity in supply contributes to the higher prices in the area.

The West Village, with its rich cultural history rooted in arts and entertainment, also boasts some of the most sought-after restaurants and shopping destinations in New York City. Notable places include the historic jazz club Village Vanguard, the rustic Italian restaurant L’Artusi, the Cherry Lane Theatre (the oldest continuously running off-Broadway spot in NYC), The Stonewall Inn (a significant site for the LGBT civil-rights movement), and the literary haven Three Lives & Company. Following the West Village, Tribeca’s 10007 ZIP Code ranks second in New York City for the most expensive median price per square foot, reaching $2,136 in December. However, Tribeca’s 10013 ZIP Code claims the city’s highest median listing price at $4.93 million.

For potential buyers in the West Village, Columbus International recommends keeping in mind the various architectural styles, ranging from Greek Revival to Art Deco to Italianate. We suggest exploring the variety of housing options, including townhouses, classic doorman co-op buildings, historic homes, and modern residences, especially along the river. The price per square foot varies widely, from approximately $1,000 to $5,000 or more. To prospective buyers, we advise assessing the differences between co-ops, which involve rigorous approval processes, and condos, offering greater flexibility to owners, in order to make informed decisions in this diverse neighborhood.

Manhattan Real Estate Sees Record Cash Transactions Despite Mortgage Rate Surge

By Columbus International,4 January 2024

Manhattan’s residential real estate landscape is witnessing a historic surge in cash transactions for condominiums and co-ops, setting a new record despite recent signs of a slight easing in mortgage rates.

According to the Manhattan quarterly sales report by Douglas Elliman, compiled by appraiser Miller Samuel and released on Wednesday, cash sales accounted for over two-thirds of transactions in the fourth quarter, marking a significant increase from the third quarter’s 56.7%. This surge in cash purchases is attributed to a “sharp rise” in mortgage rates, reaching the highest levels since 2000.

Freddie Mac data reveals that by October, the 30-year fixed-rate mortgage had climbed to nearly 7.8%, a level not seen since 2000, driven by the Federal Reserve’s series of rate hikes over the past two years. However, there was a slight decrease below 7% in mid-December, and recent indications suggest a continued downward trend in rates. The Federal Reserve has hinted at the possibility of further rate cuts this year, which could potentially stimulate the sales market.

The fourth-quarter report also highlights a 5.1% year-over-year increase in the median sales price in Manhattan, reaching $1.16 million. This uptick marks the first increase in five quarters and represents the second-highest fourth-quarter level on record. Concurrently, the year-over-year listing inventory declined for a third consecutive quarter, contributing to the overall market dynamics.

Jonathan Miller, the President and CEO of Miller Samuel, anticipates that potential rate cuts by the Federal Reserve could invigorate the sales market, diverting demand from the highly competitive rental market. This shift in demand is evident in a separate Elliman report, revealing a drop in the median rent in November for the first time in over two years, signaling a cooling trend in Manhattan’s previously red-hot rental market.

Revival of the Cubicle: As Office Workers Return, a Surprising Comeback Unfolds

By Columbus International,27 December 2023

As the calendar marches towards 2024, New York’s office sector is witnessing a glimmer of hope amid a landscape of challenges that have redefined the traditional scenario. The dynamics of demand, employment trends, and the ever-changing preferences of the workforce have compelled office owners and real estate investors to adapt to unprecedented changes.

Low Demand and High Availability: A Continuous Challenge
Office owners and real estate investors in New York are gearing up for another year of low demand and high availability. The consequences of the pandemic have left a lasting imprint on how companies operate, with many opting for remote or hybrid work models. The struggle to attract tenants to traditional office spaces persists, and navigating this challenging terrain will be a key theme for the upcoming year.

Record Office Occupancy During the Holiday Season
In an unexpected reversal, office occupancy levels are reaching new highs during the holiday season. This increase contrasts sharply with the prevailing trend of remote work and signals a potential shift in attitudes toward in-person collaboration. The festive season has become a catalyst for employees to reconnect with their work environment, sparking theories and hypotheses about the role of the office in fostering team spirit and corporate culture.

The Impact of Covid-19 on Workspace Trends
The pandemic has acted as an amplifier for a trend that was already underway: the growing importance of quiet and private spaces within work environments. While remote work provided relief from noisy and disruptive colleagues, it also introduced new distractions, such as interruptions from family members and the constant temptation to engage in household chores or spend time on social media. With the return of workers to the office, the focus on creating conducive work environments to address these challenges has never been more crucial.

The Rise of Quiet Spaces: A Billion-Dollar Market
The demand for private spaces in offices has given rise to a flourishing market. Cubicles and partitions, once overshadowed by open collaboration spaces, are now valued components of office design. According to a 2022 report from Business Research Insights, this market is expected to grow from $6.3 billion to $8.3 billion in the next five years, underscoring the significance of this transformation in workplace dynamics.

Adapting Workspaces to Hybrid Work Models
Companies are navigating the delicate balance between remote work and in-office mandates, prompting a reevaluation of office layouts. Grassi, a New York-based auditing and accounting firm, exemplifies this trend by reconfiguring its offices into hybrid spaces. The emphasis is on creating a combination of cubicles or semi-private areas alongside open collaboration spaces, reflecting the evolving needs of the workforce.

Versatile Workspaces for a Diverse Workforce
Recognizing the diverse needs of employees, many employers now offer a range of workspaces, including shared offices, conference rooms, phone booths, and libraries. This approach aims to strike the right balance between collaborative work and individual concentration, catering to the preferences and productivity requirements of a varied workforce.

As New York’s office sector looks ahead to 2024, the industry is at a crossroads, balancing the challenges of low demand with a renewed focus on creating versatile and employee-centric workspaces. The evolution of office design, driven by the lessons learned during the pandemic, will continue to shape the future of work in the bustling metropolis.

Source: The New York Times

Nobu Hospitality and Asset World Corp. Unveil Plans for Plaza Athenee Nobu Hotel and Spa New York

By Columbus International,27 December 2023

Nobu Hospitality has entered into a strategic partnership with Asset World Corp. to inaugurate the Plaza Athenee Nobu Hotel and Spa New York, an upscale 145-room hotel development situated on the Upper East Side of Manhattan in New York City. Situated between Park and Madison Avenues on 64th Street, the hotel will feature suites with both indoor and outdoor glassed terraces. Additionally, the property will offer a townhouse rental option, providing exclusive services. The suites, equipped with indoor and outdoor glassed terraces and gazebos, will be complemented by the townhouse’s distinctive offerings.

Noteworthy amenities encompass a traditional Japanese onsen bathing facility, a spa, and a wellness center. Plaza Athenee Nobu Hotel and Spa New York will boast a Nobu restaurant, offering an omakase experience—a Japanese dining style where guests entrust their menu choices to the chef. The hotel will also house a bar and lounge, along with a rooftop area designed for private events. Expected to be finalized by 2026, Asset World Corp. will oversee the comprehensive development of the project, managing both its conceptualization and design.

The collaboration has also revealed intentions for the creation of The Plaza Athenee Nobu Hotel and Spa Bangkok in Thailand, with the estimated development cost yet to be disclosed. Nobu Hospitality CEO Trevor Horwell expressed gratitude for the close collaboration with the AWC team, led by visionary CEO Khun Wallapa Traisorat. In a statement, Horwell mentioned, “The Plaza Athenee Nobu Hotel and Spa Bangkok and the Plaza Athenee Nobu Hotel and Spa New York will redefine the standards of luxury and sophistication not only in Thailand but also in the U.S. This partnership allows us to embark upon an extraordinary journey together.” This announcement comes on the heels of an exclusive agreement signed in July between AWC and Nobu Hospitality to introduce the first Nobu restaurant in Thailand, located on the top floor of The Empire—AWC’s flagship lifestyle mixed-use office complex in Bangkok’s central business district.

Source: Hotel Management

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

Macy’s Stocks Surge 17% on Potential Acquisition Offer by Arkhouse and Brigade Capital

By Columbus International,12 December 2023

Macy’s experienced a significant surge of over 17% in its stock value early on Monday, driven by a Wall Street Journal report (via CNN Business) suggesting that the longstanding 165-year-old retailer, closely associated with the holiday season, may be the target of a potential acquisition. According to the report, Arkhouse Management, a real estate-focused investment firm, and Brigade Capital Management, a global asset manager, have proposed an offer that would provide shareholders with a 32% premium above Friday’s closing stock price.

The bidders have reportedly engaged in discussions with Macy’s about the proposal. The retailer’s response to the offer remains uncertain, with no official comments from Macy’s or Arkhouse. Brigade Capital Management has yet to respond to requests for comment. Macy’s, with 722 store locations across 43 states, Washington, DC, Puerto Rico, and Guam, operates a diverse portfolio, including 500 Macy’s branded stores, 55 Bloomingdale’s branded stores, and 160 Bluemercury beauty and skincare chain locations acquired in 2015. Industry analysts, such as Neil Saunders from GlobalData, speculate that Arkhouse may see potential value in Macy’s real estate. However, Saunders warns that a strategy focused on selling off real estate and potentially spinning off the e-commerce business could harm Macy’s as a retailer in the long run unless profits are reinvested to revitalize the core retail business.

Macy’s, along with other traditional department stores, has faced ongoing challenges, grappling with competition from online giants like Amazon and major retailers like Walmart and Target. The company has responded to these challenges by closing stores to cut costs, resulting in a 74% decrease in net income in the first three quarters of the current fiscal year compared to the previous year. Despite Macy’s attempts to support its declining stock price through share repurchases, the share price has fallen significantly from its peak of $73 per share in June 2015. The proposed $5.8 billion offer, while a 32% increase from the previous closing valuation, reflects a 75% decrease from the 2015 peak. Macy’s CEO, Jeff Gennette, who has led the retailer for the past seven years, announced plans to retire in 2024. The challenging retail landscape has prompted investor groups, including private equity funds and hedge funds, to consider acquiring struggling retailers. However, such interventions have not always led to successful turnarounds, often resulting in closures, as seen with notable examples like Lord & Taylor, Toys R Us, and Sears Holdings.

Beloved Stephen Sondheim’s NYC Townhouse Finds a New Maestro at $7 Million

By Columbus International,1 December 2023

Stephen Sondheim‘s cherished New York City townhouse has gracefully transitioned to a new conductor, successfully hitting the market for a noteworthy $7 million. The proud new owner is a devoted Sondheim enthusiast residing in New York City, intending to transform the Midtown townhouse into their primary residence. The seven-bedroom house attracted considerable attention, receiving two compelling offers after being listed by Sondheim’s estate for $7 million in July. The Broadway maestro, celebrated for his timeless compositions, felt at home within the walls of this property for nearly six decades until his passing at the age of 91 in late 2021. Sondheim’s connection with the five-story Turtle Bay residence dates back to around 1960, following his lyrical contributions to iconic musicals like “West Side Story” in 1957 and “Gypsy” in 1959, as narrated in Pamela Hanlon’s book, “Manhattan’s Turtle Bay: Story of a Midtown Neighborhood.”

To ease the financial burden, Sondheim leased the top three floors until around 1973, a tactic detailed in the same book. Nestled in Turtle Bay Gardens, a charming ensemble of 1860s townhomes sharing a communal garden, Sondheim’s former residence has been a magnet for artistic residents over the years. Legendary actress Katharine Hepburn was a longtime neighbor, adding allure to the area. Among the unique features of the house is a music studio with a fireplace, where the maestro housed a baby grand piano. A solarium, accessible through a dramatic wooden arch, boasts original stained glass windows and a generous 30-foot terrace with a garden view. The primary suite occupies the fourth floor, while the fifth floor features a studio apartment designed for live-in staff. Celebrated for masterpieces like “Sweeney Todd” and “Into the Woods,” Sondheim’s illustrious career was adorned with an Oscar, a Pulitzer Prize, and numerous Grammy and Tony awards. It’s important to note that Sondheim also owned a residence in Roxbury, Conn., which entered the market with a listing price of $3.25 million in November. While luxury home sales in Manhattan experienced a 22.2% decline in the third quarter compared to the previous year, the median price exhibited a slight increase to $6 million, emphasizing the enduring appeal of distinctive properties, as demonstrated by the recently sold Sondheim townhouse.

Source: WSJ

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