Forget flipping houses: Here’s how much flipping offices can net

The practice is most popular in Hong Kong as the real estate industry is trying to side-step government efforts to curtail the prices of homes

TRD New York TRD WEEKEND EDITION /
Sep.September 08, 2018 04:00 PM

(Credit: Brian Sterling, Pixabay)

Office-flipping is taking off in Hong Kong and New York as a reliable way to make quick–and sizable–returns.

Flipping office space is done through strata-title office transactions, wherein ownership is parceled out over several sections of a building as opposed to the entire building. With just a few floors to consider, investors are increasingly finding office-flipping to be a good way to make a quick a buck, according to Bloomberg.

Hong Kong-based investor, logistics heir Johnny Cheung Shun-yee, made about $115 million by flipping two floors of the city’s 346-meter skyscraper called The Center over nine months, according to reports.

The value of strata-title office transactions since 2013 in Hong Kong is nearly $40 billion–the most worldwide–while New York’s office flipping transactions come in second globally with a value of nearly $32 billion in the same time period.

The only other American city to make the top-ten list of office flipping metro areas was Chicago with a transaction value of just over $4 billion since 2013. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Subversive CEO Richard Acosta (Photos via ICSC; iStock)

Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Riding high: Inception, Subversive to launch publicly traded cannabis REIT
Gov. Andrew Cuomo announced that movie theaters in some New York counties can reopen, but NYC’s theaters are excluded for now. (Getty; iStock)

Cuomo: Movie theaters can reopen — but not in NYC

Cuomo: Movie theaters can reopen — but not in NYC
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
IKEA Chief Sustainability Officer Pia Heidenmark Cook (IKEA, iStock)

Ikea will buy back your old furniture on Black Friday

Ikea will buy back your old furniture on Black Friday
107 Chambers Street and Allison and Frederick Thompson (Google Maps, Tribeca Health & Fitness) 

Another fitness studio in Manhattan goes belly-up

Another fitness studio in Manhattan goes belly-up
Blackstone’s Kathleen McCarthy with 440 Saw Mill River Road, Ardsley, New York and 1000 Gateway Boulevard in San Francisco, California (left) (Blackstone; BioMed Realty)

Blackstone bets big on life-science buildings with $14.6B deal

Blackstone bets big on life-science buildings with $14.6B deal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...