SoftBank, Neumann near settlement; industrial RE vacancy expected to rise

TOP NEWS IN REAL ESTATE

* WeWork Cos. Inc. co-founder Adam Neumann and SoftBank Group Corp. are close to settling a legal fight regarding the purchase of the shares of early WeWork investors and employees, The Wall Street Journal reported. According to the terms of the proposed agreement, SoftBank will buy roughly $1.5 billion of those shares, including about $500 million from Neumann, which is about half of what it originally agreed to, the Journal said, citing people familiar with the talks.

* The supply for industrial space is expected to exceed demand in the next two years, with U.S., Canada and Mexico expected to add 697.3 million square feet of new industrial space by the end of 2022, 92% of which will be in the U.S., Commercial Observer reported, citing a report from Cushman & Wakefield PLC. The industrial space users are expected to absorb 481.3 million square feet in 2021 and 2022, the report said.

➤ S&P 500 earnings, week of Feb. 22: Home Depot, Etsy to report

Fifty members of the S&P 500 are expected to report quarterly earnings this week.

➤ US banks move to deflect unwanted deposit inflows

Deposits have continued to flood into banks as they take steps to resist liquidity they do not need because of weak loan demand. Effective rates on some corporate accounts have fallen into negative territory, analysts say.

EARNINGS SPOTLIGHT

* Extra Space Storage Inc. disclosed core funds from operations attributable to common stockholders and unit holders for the 2020 fourth quarter of $204.7 million, or $1.48 per share, an increase of 16.5% on a per-share basis from $176.2 million, or $1.27 per share, in the 2019 fourth quarter.

* Realty Income Corp. disclosed funds from operations available to common stockholders for the 2020 fourth quarter of $293.7 million, or 83 cents per share, a decrease on a per-share basis from $280.4 million, or 85 cents per share, in the 2019 fourth quarter.

OFFICE

* VEREIT Inc. sold a 246,060-square-foot office building in Arlington, Texas, to an affiliate of Panda Restaurant Group Inc., for an undisclosed amount, the Dallas Business Journal reported, citing Tarrant County deed records. The three-story GM Financial Services Center I building at 4001 Embarcadero Drive is fully leased to GM Financial Co. Inc. through December 2029, the publication said, citing marketing material.

RESIDENTIAL

* Albion Residential Ltd. is developing a $140 million residential rental tower in Nashville, Tenn. The Albion in the Gulch project will include 415 units at 645 Division St. and will be completed by the end of 2022.

HOTELS

* Marriott International Inc. is working to turn its hotels into "bleisure" destinations in the face of gloomy predictions for the business travel sector, The Wall Street Journal reported. The hotelier, which saw 60% of its rooms booked in 2019 for business travel, would like to take advantage of increasing customer demand for blending leisure travel with work, the publication added.

INDUSTRIAL

* Home furnishings importer Comptree Inc. leased a 589,680-square-foot newly completed distribution center at 1380 Jesse Cronic Road in Braselton, Ga., the Atlanta Business Chronicle reported.

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