Commercial property development companies transform an undeveloped piece of land into something commercial. It can include shopping centres, office buildings, and residential complexes.
It can take two to three years to negotiate and purchase a piece of land and then another couple of years to construct the building. During that time, the economy could change, or there could be construction delays.
Brookfield Property Partners
The company offers commercial property development services, including office buildings, malls, and self-storage facilities. In addition to these services, it also owns and operates industrial properties. Its portfolio is diversified across the country and internationally, with over $88 billion in assets. Its global portfolio includes office, retail, multifamily, logistics, hospitality, triple net lease, and student housing.
Its recent acquisition of Chicago-based mall owner GGP made it one of the largest mall owners in the United States. 2012, Brookfield entered the industrial property sector when it acquired Atlanta-based Industrial Developments International and London-based Gazeley Ltd. These companies were merged into a single entity, IDI-Gazeley. This expansion helped the company become a leading international developer of industrial-property businesses in North America, Europe and Asia.
Despite the company’s massive size, it hasn’t managed to keep up with its debt load. Its current debt-to-capital ratio is about 60 per cent, which is high by most standards. In addition, its interest coverage ratio has dropped to around two times, compared with four to six years ago.
Brookfield Property Partners is the real estate unit of Brookfield Asset Management Inc., a Toronto-based asset manager with approximately $575 billion in assets under management. Investors can avoid the limited partnership issues by buying sister security Brookfield Property REIT, which will still require external control. The company’s equity interests include general partnership units, exchangeable, special limited partnership units, and FV LTIP Units. Its debt interests include senior unsecured notes and preferred shares. DBRS has assigned a BBB- rating to the company’s long-term debt and BBB- with a negative trend for its senior unsecured debt and BBB- with a stable outlook for its preferred shares. For more information about commercial property development companies, click here.
Tishman Speyer
Tishman Speyer is a leading owner, developer and operator of first-class real estate worldwide. The company’s portfolio includes office, residential and retail space in 30 key global markets. Its signature projects include New York City’s Rockefeller Center, Chrysler Center and The Springs in Shanghai, and OpernTurm in Frankfurt.
Tishman recently sold a 10-building Shanghai office campus to investors led by China-based CapitaLand Investment in what is one of the most significant commercial property sales in 2022. Tenants, including Nike, leased the complex, and the sale is a sign that investor appetite for high-quality properties remains strong.
Known for its iconic office towers, Tishman Speyer is getting in on the industrial gold rush by expanding its portfolio of Class A assets in major global markets. Earlier this year, the company announced that it had acquired two industrial facilities in the United States as part of a $500 million investment platform with South Korea-based Hana Financial Group and Vestas Investment Management.
Tishman Speyer has also partnered with Project Destined, an international youth development organization, to create a competition for middle school students in cities worldwide. The students are tasked with evaluating real-world commercial property transactions and then competing against other teams in their markets to earn scholarships.
JPMorgan Chase
The bank’s recent efforts to invest in communities in need are a sign of progress, and the organization has made it clear that it wants to be part of the solution. The firm has supported community development finance institutions and has a strong track record of keeping affordable housing through New Markets Tax Credits. It has also committed to a $30 billion racial equity commitment, focusing on the nation’s most distressed communities.
Recently, the company has refocused its strategy to include a stronger emphasis on innovation and community. For example, it has used Tableau to make it easier for analysts across business teams to question data. It has reduced manual reporting time from months to weeks and created better enterprise-wide decision-making with elevated transparency. For more information about commercial property development companies, click here.