Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO—Between all-time low hotel occupancy rates, fizzled retail rent payments, and an increase in office rent abatements and lease extensions, one thing has become evident across the commercial real estate landscape: capital expenditure spending is frozen, says Harris Cohn, vice president of commercial real estate with Carbon Lighthouse. Public first quarter 2020 REIT investor reports reveal approximately $600 million of previously announced capex spending in 2020 will be deferred.

For example, one office REIT ranked in the top 10 in terms of market value announced in fourth quarter 2019 it would spend approximately $500 million on development and repositioning to earn a 5 to 7% yield. At the end of first quarter 2020, the REIT announced it would put $73 million in “discretionary capex” previously planned for the rest of 2020 on hold.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

More from this author



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.