Steve Cuozzo

Steve Cuozzo

Real Estate

The time is now for building deals and other stories to watch after Labor Day

Labor Dayā€™s over and the power players are heading back to town from their summer escapes. So get ready for somešŸŒŠ serious ā–Ødealmaking after a long, dry season.

Or will there be a serious bust instead?

In the spirit of ā€œfall previewā€ entertainment coverage, hā­•ere is Realty Checkā€™s look at the big stories to watch in the months ahead.

WE WORRY: Commercial landlords, lenders and brokers are sweating it out as WeWork, now The We Company, readies its formal public offering in mid- or late September. Why? Itā€™s merely the cityā€™s largest office tenant, with more than five million square feet ā€” more than the largest banks. Itā€™s the sole tenant in four buildings here and owns outright the vacant, former Lord & Taylor building on Fifth Avenue. The fact that WeWork subleases its space ā™‰to other companies also makes it one of the biggest landlords, so its fortunes can have a huge impact on the whole commercial market.

WeWork had an operating loss of $1.37 billion for the first half of the year ā€” twice its loss in 2018 ā€” on $1.54 billion revenue. It hopes to raise between $3 billion and $4 billion in the stock offering, whicź¦œh Forbes last week šŸŒƒcalled ā€œthe most ridiculous IPO of 2019.ā€

MADISON AVENUE MISERY: Retail landlords and brokers are praying for anyone to rescue Barneys, the luxury retailer known for occupying nine stories on Madison Avenue on Manhattanā€™s Upper East Side. An entire empty building in the heart of the avenueā€™s prime shopping corrišŸ·dor would be calamitous when too many storefronts in the East 60s already stand empty.

HOTEL HELL: The cityā€™s vast lodging industry is quaking over Mayor Bill dešŸŽ Blasioā€™s notion to limit new hotel development by requiring every new project to undergo the contentious and time-consuming land-use review procedure. Itā€™s backed by Peter Wardā€™s hotel union, which would have a big say in whether any project could go ahead. Insiders say that de Blasioā€™s idea, which is merely a ā€œstudyā€ at this point, will fly or crash by the end of thšŸ€…e year.

EYES ON AMAZON: Spurned by Long Island City, the companyā€™s supposedly being tempted by at least three Manhattan locations for new offices ā€” Brookfieldā€™s Manhattan West, Vornadoā€™s Farley Post Office site and WeWorkā€™s former Lord & Taylor building. But will Jeff Bezos bite?

Maybe Amazon was the secret ace in Brookfieldā€™s pocket at 2 Manhattan West when the develļ·ŗoper said last winter that it would build the tower even without an anchor tenant ā€” although a completed deal with law firm Cravath Swaine, which signed a term sheet last spring, now appears certain.

CLOSELY WATCHED SITES: Maybe the crisp autumn air will bring news of whatā€™s going to rise on long-dormant development sites: like Vornado and Lefrakā€™s big empty lot on West 57th StreešŸŽt between Fifth and Sixth avenues; the Rockefeller Groupā€™s vacant land (now up for sale) on West 48th Street between Sixth and Seventh avenues; and of course, Larry Silversteinā€™s site for 2 World Trade Center.

WAITING FOR NORDSTROM: The famed Seattle-based fashion retailer plans to open its first New York womenā€™s department store at Extellā€™s Central Park Tower on West 57th Street on Oct. 24. All eyes will be on the 300,0š’€°00-square-foot emporium that launched months after Neiman Marcź¦ŗus came to Hudson Yards, at a time when the department store business is under siege.

COMMERCIAL RENT CONTROL? A City Council bill to screw retail landlords who are already suffering enough, disguised as a ā€œSmall Business Jobs Survival Act,ā€ would lead to more vacant stores than we already have. Although Council speaker Corey Johnson has so far declined to endšŸ…ŗorse it, anythingā€™s possible in that governmental body.

WESTFIELDā€™S WOES: Since two restaurants pulled out of deals for large spaces at 3 World Trade Center last year ā€” Daniel Hummā€™s Eleven Madison Park group and British steakhoā™›use Hawksmoor ā€” most of the tower podiumā€™s highly visible 75,000 square feet of retail space remains embarrassingly empty. The Trade Center desperately needs a big new eatery or two; maybe this autumn will be the charm for Westfield.

WILL EMPIRE OUTLETS MAKE IT? The 350,000-square-foot shopping mall next to the Staten Island Ferry terminal in St. George was seven years in the making. But since it opened last spring, only 26 of 75 storefronts are open. Developer BFC Partners has a lot of work to do to avoid a lump of coal for the holidaā›Žys.