Real Estate Sector
Blackstone acquired a Palm Beach property for $86 million in cash, while Starwood expanded its Miami-Dade affordable housing portfolio with a $51.6 million purchase. Meanwhile, office renewals accounted for 51% of Boston's Q2 leasing activity as landlords faced high vacancy rates and rising build-out costs, and Modiv Industrial stockholders approved an acquisition by Global Net Lease.
Commercialobserver.com reports that Blackstone Real Estate has agreed to acquire 125 Worth Avenue in Palm Beach for $86 million in an all-cash deal. The seller is billionaire Ken Griffin, who bought the roughly 50,000-square-foot office and retail building for $83 million in 2023. This marks Griffin's second disposition on Worth Avenue in under a year, following his November sale of 151 Worth Avenue. Blackstone plans to renovate the property to upgrade both its retail and office components. The acquisition aligns with Blackstone's global high-street retail strategy, which recently includes retail property purchases in London, New York, and Paris.
Bisnow.com reports that renewals dominated Boston's office market in the spring and summer as tenants leveraged an 18.7% vacancy rate to secure concessions and downsize. CBRE data shows that renewals accounted for 51% of second-quarter leasing activity, totaling 583,000 square feet, up sharply from 17% in both the first quarter and Q2 2025. Rising construction costs have heavily penalized relocation, with Cushman & Wakefield noting that Boston's average office build-out costs rose 19% year-over-year to $213.28 per square foot in 2026. Landlords are combating the broad market slump by offering aggressive concessions and upgrading amenities to defend their tenant rosters against newer developments. For instance, MetLife and Norges Bank retained The Brattle Group at One Beacon Street after allowing the consulting firm to contract its footprint from 60,000 square feet to 42,000 square feet. Meanwhile, Tishman Speyer secured 150,000 square feet of lease extensions at 125 High Street by expanding its amenity offerings, joining other owners like DivcoWest and The Chiofaro Cos. in funding major capital improvements to protect occupancy.
Modiv Industrial common stockholders approved an acquisition by Global Net Lease at a virtual special meeting, with approximately 94% of votes cast supporting the transaction. Roughly 65.5% of eligible shares were represented at the vote, clearing the final major hurdles for the merger into GNL-affiliated entities alongside a concurrent operating partnership merger. Modiv investors will transition into ownership of GNL stock and receive an estimated 25% dividend increase upon completion. The transaction is expected to close on or about August 12, 2026. Truist Securities acted as sole financial advisor to Modiv, with legal counsel provided by Morrison & Foerster LLP and Venable.