— Manhattan Apartment Leasing Surges; TikTok Sets $20B E-commerce Goal; Microsoft Subleases Times Square Offices; Blackstone Sells Texas Resort for $800M; Uber Vows Emissions & Plastic Cuts; Developer Rejected by 48 Lenders; Moving to Miami Saves $200K
1. Manhattan Apartment Leasing Surges
According to the latest data from brokerage firm Douglas Elliman Real Estate, in May this year, Manhattan rental apartments were leased on average within 35 days of listing—faster than April’s 48 days and a year ago’s 52 days.
Additionally, average signed monthly rent has increased for three consecutive months, rising nearly 10% year-over-year to $4,395.
Though the peak leasing season has yet to arrive, the rental market is already heating up. Typically, Manhattan rents peak in summer and dip in winter, but this year’s strong demand has kept prices climbing.
Each year, July and August are the fastest months for New York rentals—units are leased on average in 26 days. May’s speed was the fastest since July of last year.
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2. TikTok Sets $20B E-commerce Goal
Sources revealed that ByteDance’s TikTok aims to rapidly expand its e-commerce business this year, targeting $20 billion in gross merchandise volume—four times last year’s $4.4 billion.
TikTok Shop’s livestream commerce in Indonesia is expected to drive growth. The company also plans to scale its U.S. and European e-commerce operations to grab a larger share of the $17 trillion global e-commerce market. TikTok’s advertising revenue, however, has slowed amid economic headwinds.
ByteDance hopes to replicate Douyin’s e-commerce model on TikTok, which has over 150 million U.S. users, but faces opposition from American regulators over data security.
TikTok aims to transplant Douyin’s commerce playbook to capture more share in the U.S. online retail market.
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3. Microsoft Subleases Times Square Offices
According to real estate data provider CoStar, Microsoft is seeking to sublease 42,000 square feet of office space in New York’s Times Square.
Recently, Microsoft has been laying off employees and canceled plans to open a new office in London.
This year, companies like Twitter and Spotify have also subleased Manhattan offices. Rising vacancy rates and falling demand have increased pressure on landlords.
Tech firms have been among the most important commercial tenants, but this year they’re scaling back on office space.
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4. Blackstone Sells Texas Resort for $800M
This week, Blackstone’s BREIT sold the JW Marriott San Antonio Hill Country Resort & Spa for $800 million, netting a $275 million profit.
The buyer, Ryman Hospitality Properties, completed the second-largest single-asset hotel transaction in the U.S. since March 2020.
The property includes 1,002 rooms across 268,000 square feet of indoor and outdoor space, a 26,000-square-foot spa, a 9-acre water park, and an 18-hole golf course.
Scott Trebilco, BREIT’s senior managing director, said hospitality assets represent just 3–4% of the portfolio, but the deal highlights continued demand for warm-weather resorts.
Resorts in warm climates like Texas and Florida remain attractive investment targets.
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5. Uber Vows Emissions & Plastic Cuts
Uber Technologies has pledged to eliminate 100% of food delivery-related emissions by 2040 and to remove all unnecessary plastic waste by 2030.
Uber Eats’ global head of sustainability said that with nearly 890,000 merchants across 30+ countries, the company has a responsibility to lead on environmental impact. The business generates 14 million tons of plastic waste annually, including takeout packaging.
Though known for ride-hailing, Uber expanded into food delivery during the pandemic. In 2022, delivery accounted for 44% of total revenue. Since most rides use cars while deliveries often use bikes or scooters, ride-hailing creates more emissions.
Uber also plans to promote electric vehicles among drivers and has partnered with EV charging networks.
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6. Developer Rejected by 48 Lenders
Howard Hughes Corp., a Texas real estate developer backed by Bill Ackman, revealed that it was rejected by 48 lenders when seeking financing for a new apartment project.
The firm is known for master-planned residential and retail developments in Manhattan and Hawaii. Ackman’s hedge fund, Pershing Square Capital Management, owns about one-third of the company.
Commercial real estate lending has tightened significantly. Though offices are under more pressure, apartment buildings are also seeing credit headwinds.
According to Green Street, U.S. apartment building valuations have fallen 21% year-over-year.
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7. Moving from NYC to Miami Saves $200K
A new report from Smart Asset shows that someone earning over $650,000 a year could save $200,000 annually by relocating from New York City to Miami.
Those living in San Francisco with similar income would save $150,000 by moving to Miami, thanks to lower taxes and cost of living. But the savings would be only $10,000 for someone moving from Chicago, where living costs are lower than Miami’s.
Florida has long been favored by Northeastern retirees for its lower taxes and warmer climate. However, Miami’s home prices have surged due to migration.
Florida’s tax and cost advantages make cities like Miami a preferred destination for retirees and high earners.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.