The Corporate Real Estate Insider

(0:00) Opening(0:40) Institutional buyers investing in distressed markets(7:09) Building class A+ office space(9:48) Increased construction costs and renewal dynamics(21:33) 10-year Treasury and interest rates(25:09) The federal government cancels 250 leases(41:15) Co-working and investment management companies(59.50) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:23) The performance of the office market across different quality levels(21:02) How companies think about investing in office space(33:43) Alexandria's earnings report(49:41) Industrial real estate update(56:11) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(3:19) Urban vs. Suburban and which will outperform(14:14) What hybrid work means now(16:58) Venture capital, hardware technology, life science, energy(43:40) Increased demand due to a tech recovery(45:05) An increase in loans and the default rate(46:27) Ecommerce, 3PLs, trading partners(55:53) Multistory warehouses(59:29) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:15) Extended commercial loans and real estate assets(16:24) Treasury yield curve(22:18) Venture capital investments fall(26:57) Office demand in New York, Boston, and Seattle(41:05) Electric air taxi network in the Bay Area(49:45) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:17) SpaceX's enormous impact on hardware technology focused real estate assets(11:08) xAI's gigafactory in Memphis(37:35) Languishing life science real estate supply(43:42) Loan exposure(58:56) Price decreases due to reduced parking requirements and automation(1:05:35) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:26) A demographic shift in the workforce(18:13) Meet-me buildings and data centers(30:20) Increasing opacity in commercial real estate(47:19) The office market cycle(1:01:22) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:20) The decrease in industrial construction and development(8:45) How industrial real estate market performed in the Great Recession(13:25) Asset prices and variants in yields across developers(27:15) Price to FFO and REIT ratios(28:51) Dual agency in residential vs commercial real estate(44:21) The over built life science market(57:10) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(1:22) CBDs underperforming suburban markets(7:43) Increase in net effective rents for class A buildings(11:53) Homelessness and occupancy in downtowns(23:50) Jobs and labor market(39:20) Increased power requirements in manufacturing markets(58:31) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:25) Eric Schmitt's (former Google CEO) views on working from home(5:24) New Starbuck's CEO work from home schedule(25:16) Boston office sells for less than one-fifth of what they paid(31:22) The new business model of coworking companies(58:24) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:38) Boston Properties' earnings release(2:26) Flight to quality and premium office space(32:43) GSA has disposed of over 8 million square feet in the last four years(41:11) Construction investment in manufacturing in the US(52:37) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(1:25) The real estate story behind Brian's new office/studio location(7:40) Mid-year update on the industrial real estate market(14:09) What the remainder of 2024 and 2025 will look like for the industrial real estate market(21:10) Slowdowns in industrial development and its impact on future pricing(38:33) Navigating the current market with various expiration dates in a portfolio(46:44) Changes in office space needs and demand on urban life(58:05) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:33) How does workplace effectiveness relate to the director of real estate role?(10:21) How does Genentech make real estate decisions and what is the process?(22:04) How has the director of real estate role changed?(36:19) Genentech's strategy to future-proof their sites(44:47) Sara's take on remote work(51:48) Mentorship in CRE(57:53) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:21) Law firm trends in 2024(22:41) Law firm space considerations in the future(33:57) Offices moving to suburban locations and the hub and spoke model(43:01) Risks to consider during long term leases (52:46) Brookfield's mini city mall renovation strategy(1:01:46) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:23) Thoughts on the macro economy(13:18) The federal reserve and other stimulus(23:24) AI companies(38:15) Telephonophobia in the workplace(51:32) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:14) The average American worker is lonely(14:30) NBBJ's The Delight Factor(23:20) Coworking spaces in the suburbs(46:12) Industrial pricing(58:22) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:11) Is there a premium office space shortage?(10:02) Nearly 90 million square feet of office space removed in Q1 of 2024(16:57) Trickle-down demand and occupancy rates(36:30) Occupancy decisions based on return to work “progress”(44:16) BREIT article(52:27) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:20) Recent example of a renewing tenant being taken advantage of by a landlord on a renewal(16:30) Bedrock's massive investment into development in urban Detroit and how they're trying to reverse the doom loop(29:07) Urban planning and housing thoughts(39:04) The “Death of Fun at Work” article(59.05) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:32) The doom loop in downtown St. Louis and many other US cities(20:50) Opportunities and risks when doing sublease deals(37:37) Industrial rents and demand are slipping in the Inland Empire and other core industrial markets(44:30) Defensive expansion by companies going away(50:35) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:18) Property tax pass through charges and unique operating expenses(23:33) Single tenant Amazon office building in Arizona uncertainty(41:10) Update on the industrial market softening(45:34) Legal industry's performance in the office sector(53:26) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:06) National Association of Realtors reach a major settlement(23:30) Tracking foot traffic and the return to office rates with cell phone data and what it says(32:34) Utilization rates across real estate(39:33) $929B of CRE loans are due to mature in 2024(53:24) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:42) Marketing and positioning of large subleases(24:14) Expert advice on how to improve gatherings of all types(33:05) The strong performance of data centers and what to expect in the future(47:13) Obsolete high-rise buildings(52:57) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:09) Introducing Sara Escobar(1:56) Sara's corporate real estate and workplace experience at Hulu, Honey, Paypal, Netflix, and Riot Games(5:40) The importance of listening and data(11:46) What is workplace strategy?(15:08) Maintaining engagement, satisfaction, and connection(20:50) How to utilize data to make the right real estate transactions(27:02) The importance of being in the office(32:24) Profound changes in today's workplace(35:42) How the role of real estate and workplace professionals might change in 5-10 years(40:19) Asynchronous collaboration (45:19) New complexities for corporate real estate leaders(59:53) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.Don't forget to check out Sara Escobar's new book WORK then PLACE: The guide to define the Future-of-Work, available now on pre-order, for more insight!

(0:00) Opening(0:27) Raleigh-Durham's growth as a GMP manufacturing hub and why this is happening(15:36) SOC codes and labor analysis in general(20:01) Is there a reckoning coming for Class A towers?(33:13) The importance of employee commute time(54:01) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:24) Distressed real estate funds forming(17:42) How owners inflate reported building values(23:31) Owner user purchasing and GAPP impact(41:00) WeWork issuing cancellation notices to certain occupiers of their spaces(43:13) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:34) Predictions for the office market in 2024(34:13) Predictions for the industrial market in 2024(49:29) Emerging trends for CRE in 2024(58:31) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(00:19) Tricks landlords are playing with operating expenses and capital expenditures in this environment(15:50) Navigating sublease extensions(30:19) Why the federal government is struggling to get employees to return to the office(40:38) Office availability rates across different parts of the US(51:50) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:32) Brookfield very publicly fires broker from major leasing assignments(11:10) Many large CRE firms dealing with financial challenges(13:42) Gensler's report on downtown-based employees(20:43) What companies should prioritize in their physical spaces(31:25) Different approaches to getting employees back into the office(41:20) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:15) Life science market thoughts(8:13) Flight to quality and the “quality premium spread” concept(23:18) The challenge with Downtown Minneapolis and others alike(33:32) Thoughts on the current market and long term recovery(50:55) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:13) Goldman Sachs prepares to construct an 800k square foot office campus in Dallas(2:25) Highest vacancy rate cities in the US are in Texas(10:11) An 83k square foot office building in San Francisco sells for half of its last purchase price(27:29) WeWork has exited almost 600 leases, equating to $12.7 billion in future lease payments(38:54) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:20) Vacancy rates are soaring in Sunbelt cities (11:01) Distressed buying/selling of office buildings underway (31:09) Restoration lease clauses (34:30) New industrial construction is falling. What will the impact be?(37:35) Insurance cost and exposure increasing(43:25) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:21) WeWork attempting to exit majority of their leases(16:42) There is a buyer/seller on every deal – who is right?(31:32) Real estate doom loop impact on banks(49:30) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:57) Smucker's implements “core weeks” as a new hybrid work strategy (9:53) Economic incentives and their impact on site selection (22:07) The state of the office market (33:23) Update on Texas markets(42:35) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:27) Zoom's employee mandate to return to the office(9:35) The impact of a potential Wework bankruptcy(25:53) Amazon cracks down on WFH flexibility(30:18) The impact of climate disasters on property insurance(39:45) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:23) Negative rent growth in apartments(4:53) The amount of office space in the US is decreasing(14:25) $1 trillion “wall of worry”(28:35) Challenges within corporate real estate departments(35:49) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:16) Introducing Maggie Hatfield-Hartley, VP of Real Estate Services at Haliburton(1:34) Haliburton's real estate portfolio(5:04) Haliburton's process and strategy(20:29) How Haliburton structures its real estate transactions(27:15) Why knowing your numbers is important(35:54) Maggie's most challenging real estate project(43:03) Tips for new real estate directors(47:26) Leveraging brokers and other vendors as partners(52:30) Office space and remote work(58:41) The most challenging part of Maggie's job(1:00:06)What makes a great director of real estate(1:00:46) Some final advice and thoughts from Maggie(1:08:58) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:17) Tax incentives to reset class B and C office buildings(10:28) Is student housing a new “bright spot” in the market?(17:53) The overall economy and what it means for corporate tenants(28:01) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:26) Blackstone sells $3.1 billion worth of industrial real estate to Prologis(12:36) The impact of Blackstone's sale to current tenants in buildings being sold(21:05) Vornado bets $1 billion that more commuters will return to the office in NYC if the commute was easier(29:49) SL Green sells a 50% stake of 245 Park Avenue(39:09) Lender involved short sales(41:15) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(0:44) Gallup's State of the Global Workplace report(2:29) Active quitting is at 18%(5:47) Rents are on the rise in urban fringe neighborhoods(13:45) Silicon Valley companies are now dumping office space(18:48) Major retailers are pulling out of San Francisco(21:08) Product types that are performing well(24:36) Content-creating companies and production space(30:50) Life science building occupancy(47:47) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Opening(1:10) US avoids monetary default(2:10) The ticking time bombs in America's Downtown areas(4:55) CRE debt in Downtown Los Angeles(11:45) Infrastructure investment for 2028 Olympics and its impact(18:15) Kastle Building Systems report on return to work(23:07) Jobs report(27:37) Varying perspectives from developers on the future of the market(33:00) Amazon's walkout – return to the office(39:45) Building sales climate(54:08) Bias in CRE news coverage(1:00:23) ClosingTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Open(0:30) Sam Zell and the history of Blackstone's Equity Office acquisition(11:25) Commercial real estate debt(19:01) Unemployment and return to work(24:10) Elon Musk's take that working from home is morally wrong(31:15) Boston life sciences market(34:33) Building conversions and subleases(41:06) Life science leasing activity(45:01) Life science funding(1:00:33) CloseTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:00) Open(1:03) How large companies are viewing their owned real estate(5:10) The life science market's challenges(13:45) The correlation between office leasing and hotel occupancy(17:30) Who's buying buildings and what are their motivations?(39:17) New real estate concessions companies are obtaining and news(1:02:21) Closing To learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:23) The challenging environment for REITS(11:25) Life Science space demand(18:37) Clean tech growth and office incubation(22:30) How to address unique zoning challenges and risks (32:47) What companies should do when a listing broker misbehaves(43:50) How to handle your landlord wanting to redevelop your building(56:45) How to handle complicated sublease scenarios (landlord recapture, approvals, and more)To learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(1:03) Evaluating the health of landlords with near term loan expiration dates(6:41) AI's potential impact on the commercial real estate world (17:20) Trauma informed design (19:12) What do if your landlord is going to or has defaulted on their debt (27:46) What to do if you are caught in limbo between signing a lease and a commencement date due to a landlord default (40:00) What do you do if your building is destroyed and your landlord wants to rebuild leveraging an unfavorable tenant damage and destruction clause(48:36) What do you do if your landlord will only discuss a renewal if you agree to waive your renewal option firstTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:24) Falling credit availability impact on the economy(3:50) Bank rescues(14:20) The impact of this on rents(16:30) Future of cities(34:54) Confusing and misunderstood parts of CRE(37:53) BOMA measuring standards(46:02) Unknown costs hidden in leases(48:45) Management fees(51:14) Operating expensesTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:41) Retail companies using data to relocate store fronts(7:52) Return to office rates – US vs the world(20:31) Desk sharing and office utilization(29:50) Obsolete office space(35:53) The use of data analytics in making real estate decisions(40:48) What should your goal be in leveraging real estate data?(42:14) How sensor data can benefit occupiers(46:52) Location and commute data(49:51) Costar's monopoly on availability data(57:45) A potential VTS future(1:02:42) Anonymized lease comps(1:03:38) Closing thoughts To learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(0:55) News updates(23:08) How has the role of the real estate departments changed over the last 5 years?(29:55) Strategic planning around resiliency of real estate portfolios(34:10) How technology is and will change logistics and manufacturing real estate decisions(46:09) Role of coworking in a modern real estate portfolio(58:36) Lease administration(1:01:15) Prop tech and data(1:02:30) Final thoughts on optimizing a real estate departmentTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(1:47) Real estate news updates(14:00) Restructuring existing leases(18:20) Dealing with termination fees(19:51) Jarvis' lease box savings model(22:00) Beneficial occupancy(27:00) Commencement date and GAAP rent(29:31) “Landlord work” and timing of new builds(34:38) Signing leases with single purpose entities(37:30) Expansion rights and options(45:42) Parking negotiations(49:02) Rapid fire smart terms to negotiate(52:05) The importance of roof rights in a future with more solar(58:14) Equity leases(1:05:25) Unique negotiations we've completed To learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.

(1:11) Distressed Real Estate Assets(5:50) Risks to tenants from their landlord defaulting(7:00) Lease protections for landlord defaults(12:25) Could this be a repeat from ‘08/'09 in terms of defaults?(14:45) Will GSA employees be back in the office soon?(18:06) Tik Tok – come back to an office or face disciplinary action(19:30) Thoughts on inflation(24:17) The mistake of leasing more space than necessary for growth(32:13) Not understanding TI costs(35:55) Negotiating enhanced base building deliveries(37:35) What the best directors of real estate do(39:30) Misalignment on hiring goals with real estate(44:30) Reviewing real estate portfolios for opportunities(47:37) Directors of Real Estate as teammates(51:45) Brokers then vs now(54:10) The importance of good real estate strategy(55:45) The new era role of a broker(58:30) How real directors of real estate stay involved during lease review(59:40) Final thoughtsTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly

Co-Hosts Tucker, John, Owen, and Brian are back for Episode 2 of The Corporate Real Estate Insider podcast where they discuss the industrial real estate market, how and why rents increased so dramatically during the pandemic, the impact of the recession on rents and corporate real estate strategy, advanced manufacturing growth in the US, and actionable advice for companies negotiating leases or purchases for industrial real estate in highly competitive rental markets.(1:28) What's happening in the industrial market(6:26) The impact of transportation, distribution & labor costs(10:06) Why did rents surge during COVID(20:15) What will happen to rents in 2023(27:40) The impact of Amazon's industrial pull back(29:10) How much can rent increase before companies just can't afford them?(32:53) The future role of robotics in warehouses(34:20) Market cycles and supply/demand(41:21) Consolidation of ownership(44:03) How is technology driving demand(49:35) Aerospace and Defense Companies' impact on industrial real estate(51:45) How are we advising our clients with the current marketTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly

Welcome to Episode One of the Corporate Real Estate Insider podcast. Tucker, John, Owen, and Brian discuss the current state of the office market, work from home trends and predictions, why companies are bringing their people back and how they're doing so most effectively, and how to navigate office space in this post COVID world.(1:35) Current state of the office market(5:00) How prevalent is work from home and how is it going?(15:20) Why do companies want their people back?(22:45) How many days back in the office?(31:15) Is the convenience of work from home worth the cost to employees?(37:20) Large HQ's vs several smaller offices(39:30) Economic landscape and return to the office(43:30) If you want to convince people to come back, how and why?(51:00) Doing the hard thing is often most rewarding for companies(58:00) Future state of the office market(1:13:00) Landlords and the market(1:16:00) BREITTo learn more about the podcast, please visit www.thecreinsider.com or email podcast@thecreinsider.com to get in touch with us directly.