Real estate brokers, owners and tenants completed major office, industrial and retail leases, and one of the largest industrial property sales on record, during a quarter when companies across the United States reevaluated their real estate needs in the face of shifting work preferences and the coronavirus health crisis.

The sale and lease deals recognized in the latest CoStar Power Broker Quarterly Deal Awards for the three months that ended Dec. 31 stood out as some of the biggest of 2021, despite a surge in the omicron variant of the virus and concerns about the potential effects of rising inflation and interest rates and volatile stock markets.

The deals highlight some of the trends that emerged during the pandemic, such as the clamor for warehouse space to deal with supply-chain disruptions and changing consumer spending habits. An iconic furniture and rug seller's lease on Manhattan's Upper East Side pointed to cautious optimism among retailers that shoppers will return to exclusive retail districts such as the Plaza District's Fifth Avenue.

Another big lease showed that the Silicon Valley tech giants are again adding space after a pause in their aggressive physical expansions.

Singapore Wealth Fund Pays $6.8 Billion for Massive Warehouse Portfolio

Affiliates of Singapore's sovereign wealth fund bought 328 warehouses across the United States from the real estate arm of global private equity firm EQT in a deal that signals increasing demand for industrial properties as more Americans shop online.

The $6.8 billion purchase by GIC Real Estate of the 70.5 million-square-foot portfolio from real estate investment manager EQT Exeter was one of the biggest U.S. industrial real estate deals on record.

The venture formed by Sweden-based EQT and a company it acquired last year, Philadelphia-based Exeter Property Group, sold properties that they acquired in more than 100 deals over three years.

EQT Exeter, which sold the portfolio on behalf of a private real estate fund and its related investment vehicles, plans to continue managing the mainly big-box and e-commerce warehouses and last-mile package facilities used by large corporations.

The warehouses are in New York, Dallas, Atlanta, Chicago and Los Angeles, and the key air cargo hubs of Memphis, Tennessee; Indianapolis, Indiana; Columbus, Ohio; and Louisville, Kentucky.

Logistics real estate landlords and developers have capitalized on record rent growth and warehouse demand accelerated by consumers’ increased reliance on ordering online during the pandemic.

Eastdil Secured, headed by Senior Managing Director Jay Borzi, brokered the transaction. Fried, Frank, Harris, Shriver & Jacobson LLP advised EQT Exeter.

Silicon Valley Tech Giant Leases Tishman Speyer’s Moffett Green Office Campus

Meta, formerly known as Facebook, signed one of the biggest office leases of 2021 in a sign that companies are still committed to bringing workers back to physical offices despite remote and hybrid-work policies adopted during the pandemic.

The social media company, one of Silicon Valley’s largest, leased nearly 720,000 square feet at the four-building Moffett Green office campus in Sunnyvale, California, from international development firm Tishman Speyer.

Meta and other Silicon Valley tech firms such as Apple, LinkedIn and Google signed record-setting deals last year after pausing their expansions earlier in the health crisis. Companies across the United States have re-assessed their real estate needs in the face of shifting work preferences and the pandemic.

The deals have pushed cities such as Sunnyvale and San Jose, California, beyond pre-pandemic levels of office demand and rent growth.

Jon Mackey, Philip Mahoney and Mike Saign of Newmark’s San Jose office represented Tishman Speyer. Ze Figueirinhas and Erich Sengelmann of JLL’s Menlo Park office represented Meta.

Kitchenware Firm Williams-Sonoma Signs Deal To Bring Operations to Greater Phoenix

Kitchen and home furnishings company Williams-Sonoma leased 1.2 million square feet in a deal that illustrates greater Phoenix’s booming growth as manufacturing, logistics, technology and other industries expand and bring jobs to Arizona.

Williams-Sonoma, a global retailer that last year announced plans to increase its manufacturing and distribution capacity in the United States by as much as 30%, plans to start operations in September at The Cubes, an industrial park under construction in Glendale, Arizona.

The publicly traded firm based in San Francisco has manufacturing and distribution facilities in 12 states, including California, Tennessee, Colorado and Texas, according to company filings. Williams-Sonoma has not disclosed publicly whether it will consolidate facilities in other states at the 335-acre industrial park being developed at Reems Road and Northern Avenue by the real estate development and investment arm of Chicago-based Clayco.

Phoenix’s industrial real estate market set records last year for construction and leasing as such national firms as Home Depot, Lowe’s, Best Buy and Chinese mattress maker Mlily signed big deals to move or expand logistics and manufacturing operations in the Grand Canyon State.

The JLL team of Bill Honsaker, Kelly Royle and John Lydon handled leasing for landlord CRG, the real estate development and investment arm of Clayco.

Luxury Furniture Seller Signs for First Manhattan Showroom

Luxury furniture and rug retailer Ben Soleimani signed a two-year lease to open a flagship store on Manhattan’s Upper East side as retail deals start to pick up in the face of record-high vacancies earlier in the pandemic.

Soleimani, the designer known for his contemporary rugs, furniture and home décor who operates a showroom on trendy Melrose Avenue in West Hollywood, California, leased 12,200 square feet at 601 Madison Ave. in the Plaza District. The space is spread across three floors, according to Brandon Singer, co-founder of retail brokerage Mona, who represented Los Angeles-based Soleimani.

William Abramson and Matthew Olden of brokerage Buchbinder & Warren represented landlord J-2 LLC.

The Plaza District is home to some of the world’s most exclusive retail addresses, with international fashion brand flagships alongside upscale department stores such as Bergdorf Goodman and Saks Fifth Avenue.

The pandemic increased the rate of store closings in many big cities as fewer tourists and residents ventured outside to shop for luxuries and other discretionary goods, according to CoStar Market Analytics.

Manhattan is still facing challenges as the recent spread of the omicron variant delays office reopenings and holds back the return of tourists. Nevertheless, retail tenants signed a number of notable deals in 2021 to take advantage of lower rents, according to CoStar. In August, Bed Bath & Beyond renewed its 82,000-square-foot lease at 620 Avenue of the Americas in the Chelsea District.