The Weekly Take from CBRE

Robinson Weeks Partners' David Welch and CBRE's Chris Riley discuss market opportunities and challenges in the industrial real estate sector. Chris will be leaving CBRE to join Robinson Weeks in a senior position effective June 1.Share these insights on industrial & logistics real estate: 1. E-commerce helped the industrial sector grow, but a spate of development has created challenges.2. Large-scale redevelopment projects, such as transforming former military bases, can yield substantial returns but require flexible planning, environmental cleanup and, often, partnership with the public sector.3. Modern industrial buildings are designed with increased clear heights and advanced lighting to meet present and future occupier needs.4. Highway and transportation access, utilities availability and environmental regulations are some of the critical factors in industrial site selection.5. Staying informed about local regulations, zoning restrictions and community sentiments is vital for securing project entitlements.

In this bonus episode, CBRE's new Global Head of Research, Dr. Henry Chin, discusses the current outlook for commercial real estate for both occupiers and investors. Key Takeaways on the Economic and Real Estate Outlook · Market Sentiment: Real estate fundamentals don't change overnight. Leasing activity is proceeding across asset classes though some occupiers are delaying decisions until they have more clarity on potential policy changes and their economic impact. · Economic Indicators: Monitoring not only job growth and inflation but also softer indicators like travel bookings and restaurant reservations provides a feel of the real economy. · Nimble Capital: High-net-worth individuals can move quickly to pounce on attractively priced opportunities.

Galvanize Climate Solutions' Joe Sumberg and CBRE Chief Sustainability Officer Rob Bernard share insights on achieving high returns through sustainable investment strategies. · Profitable Sustainability: Commercial real estate investment strategies that integrate today's sustainability and decarbonization technologies can enhance returns.· Economic Opportunities: There is high occupier demand for green buildings, presenting investment opportunities.· Technological Integration is the key: Using energy-efficiency systems and AI can enhance the operating performance and value of real estate assets.· Strategic Market Focus: Regulatory frameworks and government incentives can increase the appeal of sustainable investment strategies in certain markets.

Each new generation brings opportunities and challenges to the workplace. Recorded live at ICSC Detroit, leaders from two Michigan-based real estate families, the Schostaks and the Friedmans, discuss the hard but necessary conversations and choices required to maintain a multi-generational enterprise.Share these insights on succession planning in family-owned businesses: · Succession Planning: Establish clear governance and involve family members in decision-making to ensure smooth leadership transitions.· Leadership Transition: Transferring leadership to the next generation requires structured processes and clear roles.· Family and Business Balance: Balance family dynamics with business operations, making necessary sacrifices for success.· Adaptability: Evolve business models and diversify services to stay competitive.· Economic Resilience: Maintain liquidity and seize opportunities during economic downturns.

Stories are what make information memorable and communications more impactful. Author and business consultant Esther Choy discusses business storytelling, emphasizing how engaging narratives can be more persuasive and increase connections with audiences.Share these insights on how to use storytelling to improve the impact of communications 1. Remember the “IRS” model: The Intriguing Beginning, Riveting Middle, and Satisfying End framework helps professionals craft compelling narratives.2. Make emotional connections: Effective storytelling connects with audiences on an emotional level, enhancing understanding of information that influences decision-making.3. Be memorable: Storytelling makes your messages more memorable and meaningful.4. Express empathy and curiosity: A good business story, like any story, feels human and personal, while delivering an insight.

Wharton organizational psychologist and New York Times-bestselling author Adam Grant shares insights on making better business decisions, fostering innovation and how your personal "challenge network” can lead to superior products and delight your customers.Share these insights on how to be a successful leader: 1. Encourage Humor and Humility: They help maintain a flexible and open-minded approach, making it easier to rethink and adapt.2. Have Pre-Mortems: Discuss as many potential failures as possible before launching. That way you can prevent or know how to handle problems when they occur.3. Eschew Best Practices for Better Practices: “Best Practices” implies there's only one right way, while seeking “Better Practices” encourages people to innovate and try new things.4. Build a Challenge Network: Maintain a group of trusted critics who provide truly honest feedback to improve your decision-making.5. Reward Speaking Truth to Power: Encourage employees to ask questions, suggest improvements and challenge outdated ideas.

Manulife's Jessica Harrison and CBRE's Kevin Aussef join us from the CBRE Investor Symposium, where they highlight investment opportunities, particularly in alternative asset classes.Share these insights: - Market Momentum: Real estate capital markets are gaining momentum, as the gap between buyer and seller expectations narrows.- Strategic Investment: Sectors like affordable housing, cold storage, and industrial outdoor storage present attractive opportunities.- Market Reset and Repricing: Investors are setting their sights on higher returns, even for lower-risk assets.- New Approach: Manulife has transformed into a private equity real estate investor and launched new investment strategies to capitalize on market opportunities.- Tech Advances: AI enhances operational efficiencies and predictive analytics, improving underwriting and investment decisions.

We explore Chicago's vibrant real estate scene with CIBC's Karen Case and CBRE's Lisa Konieczka. They discuss market dynamics, Fulton Market's emergence and transformation, and ongoing capital markets challenges and opportunities.Share these insights about Chicago real estate: - The Big Split: Chicago's office market is bifurcated: creditworthy occupiers looking for high-quality space will have limited options while much of the rest of the market languishes amid a glut of space. - Important Amenities: Advanced technology, workout facilities and unique features in the best buildings will help attract tenants and draw people back to the office. - Capital Markets Challenges: High costs and limited access to capital have slowed new development significantly, exacerbating the shortage of premium-quality space. - Transportation Networks: Chicago's excellent transportation infrastructure supports its diverse economy and enhances its appeal as a business hub. - Strategic Transformation: Fulton Market has evolved into a vibrant live-work-play area, attracting major tenants and showcasing successful urban redevelopment.

Two self-storage experts—Merit Hill Capital's Liz Schlesinger and CBRE's Nick Walker—discuss the sector's strong long-term fundamentals and near-term challenges facing this resilient asset class, including a tepid housing market.Share these insights about the self-storage industry fundamentals: Operators understand the customer: Self-storage customers prioritize proximity and convenience over amenities.Data plays a huge role: Savvy investors use data to inform site selection and identify market trends such as the increasing demand for units in urban areas.The housing market impacts demand: Investors should be aware of the potential risks and opportunities associated with housing market fluctuations.Operational expertise required: Self-storage relies heavily on operational expertise to maximize returns.

Ray Washburne is an accomplished investor with an eclectic portfolio that spans shopping centers, restaurants, energy and more. Washburne offers a unique perspective on market trends, Investment opportunities and the the evolution of cities.RetailUnique Identity Wins: Local restaurants and regional brand dining experiences are essential to attracting visitors to a city or neighborhood.Bifurcation of Retail: High-end luxury retailers and those that offervalue to consumers are doing well. OfficeDemolition Over Conversion: Many older offices are being demolished due to high conversion costs and antiquated construction.Amenities Matter: Office buildings with unique amenities are commanding higher rents and driving tenant demand. Cities & The Economy· Urban Revitalization: Cities are experiencing a resurgence with new developments driving growth and investment.· Caution Persists: A large federal deficit, high consumer credit card debt, and sticky inflation are making it essential for investors to be prepared for extended volatility.

Swire Properties' Henry Bott and CBRE's Troy Ballard examine Miami's growth, appeal to global investors and the Residences at Mandarin Oriental, Swire's luxury condominium project on Brickell Key Island.Share these insights about opportunities in Miami: Miami is thriving: The city is growing rapidly, with strong demand for housing driven by an increasing population.Luxury housing is in demand: The Residences at Mandarin Oriental is a prime example of the demand for high-end housing in Miami.International investors: Miami's multi-faceted appeal is attracting buyers from around the world.Demographics are changing: Brickell, for instance, has attracted a younger population base.Adaptive re-use opportunities: The office market in Miami has softened, but conversion and redevelopment projects are underway.

Stoneshield Capital's Juan Pepa and CBRE's Adolfo Ramirez-Escudero discuss Spain's economic renaissance, which has engendered bountiful investment opportunities.Share these insights about investment opportunities in Spain: Spain has great fundamentals: Gone are the dog days following the Global Financial Crisis. Spain's high economic growth rate has made it an attractive investment destination.Focus on alternative real estate sectors: Some of Spain's strongest sectors are student housing, life sciences and seniors housing.Renewable energy is in demand: Interest in energy and sustainable infrastructure, particularly around data centers and the industrial sectors, is high.Big pharma has a big presence: A consolidation of big pharma companies makes the region attractive for life sciences investment.It's a business-friendly environment: Incentive programs and a supportive regulatory environment has drawn inbound capital.

This week we shine a spotlight on San Francisco, a market that is showing increasing signs of shaking off the post-pandemic doldrums. Listen to a wide-ranging discussion as The Bay Area Council's Jim Wunderman and CBRE's Joe Wallace explore the growing impact of AI on local economy and real estate market, opportunities across sectors, public-private collaborations and the city's budding revival.Share these insights from this week's episode: Tech and AI Potential: The growth of AI is contributing to an economic revival in San Francisco.Office-Space Dynamics: Office leasing improved notably in San Francisco in Q4 2024, driven by its strong tech tenant base.Housing Development: Increasing the availability of affordable housing is vital for maintaining the city's workforce and economic growth.Infrastructure Improvements: Enhancing transportation—including the city's historic trolley—and other infrastructure systems will support the region's growth.Cultural and Tourism Appeal: San Francisco's unique culture, diversity and lifestyle continue to attract talent and investment.

Jamie Hodari, CBRE's CEO of Building Operations & Experience, spotlights where he sees the biggest opportunity across commercial real estate: workplace experience. He discusses how a company's space can attract tenants and enhance the employee experience, enriching people's lives and increasing business effectiveness.Share these insights from this week's episode: Everything is operational real estate: Real estate companies are evolving from asset focused businesses to operating platforms, requiring high-quality management relentlessly focused on workplace experience.AI and data utilization are no longer nice-to-haves: Using AI to manage and interpret data is crucial for optimizing building operations.Markets are adapting to accommodate hybrid work models with flexible office usage: Urban markets especially put significant emphasis on making downtown areas vibrant.Finance institutions are catching up: The finance industry must recognize and adapt to the operational nature of modern real estate.Flight-to-quality is expanding: The focus for landlords and occupiers will increasingly be on creating spaces that people find enriching and valuable, not just functional.

With a twist on the conventional lodging business model, Extended Stay America (ESA) has seen impressive growth in recent years. ESA CEO Greg Juceam discusses managing its real estate portfolio and provides insights on the business of long-term accommodations.Share these insights from this week's episode: Investment Potential: The extended-stay lodging segment offers a resilient and growing opportunity, particularly in secondary and tertiary markets.Operational Simplicity: Extended-stay hotels can benefit from streamlined operations and less labor requirements.Scalability: ESA's model combines ownership and franchising, enabling multiple avenues for growth and scalability.Diversified Demand: The diverse range of guest demand drivers -- from construction crews to long-term healthcare treatments to digital nomads -- tends to support stable occupancy rates.Strategic Expansion: ESA's focus on new builds and strategic acquisitions positions it well for future growth, even in challenging capital markets.

High-net-worth individuals and family offices can be a lucrative, though difficult-to-access source of real estate investment capital. BNY Mellon's Boryana Zamanoff and CBRE's Zaahir Syed and Compie Newman discuss how to tap into funding from family offices and the strategies these investors are employing under current real estate market conditions. Significant Pool of Capital: Family offices and high-net-worth individuals collectively represent hundreds of billions of dollars seeking real estate investment opportunities.Access and Relationships: Family offices often do not entertain unsolicited approaches. It's crucial to build trusted relationships with their advisors who act as gatekeepers.Investment Preferences and Structure: Family offices often prefer direct investments and opportunities where they can have more control and flexibility.Market Conditions and Opportunities: High interest rates and current market conditions have prompted family offices to invest cautiously with a focus on data centers, logistics and housing.Evolving Preferences: The preferences of the next generation are critical considerations. Younger family members often prioritize impact investing and newer asset classes.

Industry experts address the critical topic of property and casualty insurance, a topic that is actutely relevant amid the devastating fires in Los Angeles. AON's Ryan Barber, Walton Street Capital's Raphael Dawson and CBRE's Chris Nassa discuss approaches that can help commercial real estate owners manage risks and stem rising costs.Share these insights from this week's episode: Innovative Modeling: Property owners should adopt a sophisticated approach to risk management, using advanced tools and models to inform their insurance decisions.Captive Insurance: Owners with large portfolios should consider captive insurance and other programs to manage costs and realize profits.Data Accuracy: Providing detailed and accurate information about properties can significantly impact insurance modeling and premiums.Stay Informed: Companies should designate an in-house expert dedicated to staying informed about insurance market trends and innovations crucial for effective risk management.

Hala Moddelmog of the Woodruff Arts Center and CBRE's Nicole Goldsmith discuss Atlanta's economic and cultural development, highlighting the role of diverse talent, sports, the arts and entertainment and a welcoming business climate in its rise.Share these insights from this week's episode: Corporate support, cultural institutions and educational resources fuel Atlanta's economic development.The growing preference for mixed-use environments and high-amenity office spaces has attracted global brands and talent.Major sporting events like the 2026 FIFA World Cup and strategic urban development projects will continue to shape Atlanta's global standing.Addressing infrastructure challenges, particularly in the transit system, are key to supporting future growth.One of the most educated cities in the U.S., Atlanta's ability to retain its diverse, highly skilled workforce is critical for sustained success.

What will 2025 hold for the global economy and real estate? Selma Hepp, CoreLogic Chief Economist, and Richard Barkham, CBRE Global Chief Economist, discuss where they see opportunities and challenges and a few things to keep an eye on.Share these insights from this week's episode: Despite continued high interest rates, the economy is expected to perform well in the near term, driven by a resilient consumer.Housing sales are expected to remain subdued due to persistently high mortgage rates and ongoing affordability Issues.Real estate is at the beginning of a new cycle with retail and industrial particularly well positioned.Increased insurance costs and property taxes have exacerbated housing affordability challenges.

Back in June, Belinda Román, 2023's most accurate forecaster, according to The Wall Street Journal, and CBRE Econometric Advisors' Dennis Schoenmaker opine on the art, science and technology involved in predicting the ebbs and flows of the global economy.Insights to Share: Belinda Román, Associate Professor of Economics at St. Mary's University, expects GDP growth of 3% this year.CBRE EA's Dennis Schoenmaker expects GDP to hover around 2%.Even with slower economic growth, there will be opportunities in commercial real estate.Regional, national and global forecasting requires a deep understanding of the available data.In commercial real estate, where information has historically been opaque, future forecasting can be enhanced by AI.

It's that time of year - when we reflect on milestone moments of our fifth season. 2024 had some major themes including artificial intelligence's impact on commercial real estate, office conversions, evolving market conditions—and re-examine them all, as well as take our beginning-of-the-year economic forecasts to task to see how it turned out.

Dallas is a dynamic, fast-evolving city whose diversified economy and business friendly policies make it an attractive place for investors and companies. Longtime Dallas developers Lucy Billingsley and Lucy Burns offer insights into the city's future.Share these insights from this week's episode: Dallas offers plentiful industrial and multifamily real estate opportunities thanks to its rapid growth and economic diversification.Investors and businesses benefit from Dallas' pro-business policies and relatively low tax burdens.Demand for convenience and amenities is driving the trend toward master-planned communities that offer live-work-play environments.Dallas's growth hinges on continuing infrastructure investment, including transportation and public services to support its expanding population.

Commercial real estate offers many different career paths. Learning how to overcome challenges and finding the right mentors are key to success in all of them. Trailblazing executives including Laura Clark (Rexford Industrial), Barbara Perrier (CBRE) and Elisabeth Troni (CBRE Investment Management) shared personal anecdotes and sage advice during CBRE's recent Power of WE conference.Share these insights on pillars of a successful CRE career: Lead with integrity:Making decisions that may be contrary to your immediate financial gain builds trust and loyal, long-term clients.Seek out mentors and feedback:Mentorship is crucial for career development and informal feedback fosters skill enhancement.Challenge the status quo: Questioning traditional norms can lead to progress and achievement. Say yes to new challenges and opportunities.Balance flexibility with visibility in the workplace:Flexible work arrangements can be beneficial, but being present in your professional environment is also key to advancement.Favor unity over separation of your work-life:Completely separating professional and personal time is hard, whereas embracing work-life unity means emphasizes purposeful engagement while in both spheres.

Mary Ann Tighe, CEO of CBRE's New York Tri-State Region, discusses Manhattan's ongoing transformation. Drawing on decades of commercial real estate deal-making experience, Mary Ann discusses the resurgent office leasing market, office-to-residential conversions and long-term opportunities.Anticipated Market Transformation: Investors should prepare for a major shift in New York's office market, reminiscent of the historic changes that occurred in the 1920s.Long-Term Leases: Despite the rise of remote work, many New York City businesses want to sign long-term leases due to the high costs and complexities of space renovation.Investment Opportunities: New York has significant opportunities to convert antiquated office buildings into residential or mixed-use properties.Government Incentives: Understanding and leveraging government tax incentives can be crucial in making redevelopment projects financially viable.Cultural Edge: New York's creative energy and foremost cultural and social amenities remain a strong draw for people, businesses and capital. This enables the City's resilience and continuous evolution.

Over 12 million people a month check The Points Guy for tips on making the most of their travel experiences. Brian Kelly, TPG himself, teams up with CBRE's Hotel Research lead Rachael Rothman to explore the latest trends in loyalty programs, what hotel brands can learn from airlines and credit cards, and how you can get into that airport lounge. Insights to Share: Loyalty programs are growing in importance to operators of hotels, airlines and credit cards, many of whom have partnered to increase brand awareness and reach.The proliferation of loyalty program participation is, in some cases, diluting the benefits, but savvy consumers can maximize points by having flexible travel dates and using websites such as point.me to compare redemption value at different airlines and hotels.One way to create brand loyalty is to provide flexibility and a customized experience. Instead of waiting until guests arrive, hospitality brands should reach out in advance and offer access to local guides, spas and restaurants.

Two tech talent experts—New Enterprise Associates' Darcy Casarella and CBRE's Colin Yasukochi—discuss where to find highly skilled tech workers, the role of venture capital in shaping tech hubs and AI's influence on office space demand.Share these insights from this week's episode: 1. Strategic Location Strategy: Emerging tech markets in the Midwest and Southeast can offer significant cost advantages with their growing tech talent pools.2. AI and Talent Focus: Prioritizing AI capabilities to drive innovation and growth will mean finding and upskilling talent quickly across both tech and non-tech companies.3. Concentrated Venture Funding: Venture firms are creating a network effect by investing in new businesses in traditional tech hubs like San Francisco and Manhattan. Understanding the flow of venture capital can help predict the cities in which real estate demand will grow.

Regional economic development leader Victor Hoskins and CBRE's Cathy Delcoco discuss Northern Virginia's opportunities and challenges as well as its thriving real estate market.Share these insights from this week's episode: · Northern Virginia is benefiting from substantial job growth, especially in the technology sector, including AI-related roles. Tech job growth supports demand for office space and housing. · High-quality, amenity-rich office space is seeing strong demand. Tenants are willing to pay a premium for Class A trophy buildings with amenities, despite downsizing due to hybrid work. · Older office buildings are being redeveloped into residential units or data centers. This represents an attractive buying opportunity for nimble investors.

Jordan Schnitzer shares the strategies that propelled his family's business from scrap metals to West Coast real estate powerhouse. Plus insights on building a thriving decentralized business and the benefits of balancing data-informed and gut instinct investment decisions.Insights to Share: 1. Look at competition as well as returns. Schnitzer Properies' prefers flex-industrial properties over big-box warehouses because there is steady demand and less competition.Do more, but be mindful of how much you can do. Jordan Schnitzer refers to his approach as “aggressive moderation.” Over-extending yourself can sacrifice long-term stability.Trust your leaders to use their local expertise. Schnitzer Properies embraces a decentralized business model with local teams empowered to make decisions and grow the business.Embrace data, but don't ignore your experience. Utilize a data-driven approach combined with gut instincts to make informed and timely investment decisions.

Clarion Partners' Drew Fung and CBRE's James Millon discuss the improvement in market sentiment and a pickup in investment activity amid a brightening interest rate outlook.Share these insights from this week's episode: The Federal Reserve's initial rate cut improved market psychology and increased liquidity in the marketplace.While banks remain a critical capital source, private debt funds have stepped up their lending at a time when many banks have pulled back.3. Harnessing data and predictive analytics is essential for navigating market complexities and optimizing returns.4. Investors are primarily focused on multifamily, industrial and alternative asset classes, with data centers emerging as a particularly attractive investment opportunity.5. The next 18 months are expected to see a gradual normalization of transaction volumes, with opportunities in both traditional and alternative real estate sectors.

Rob Bernard, CBRE Chief Sustainability Officer, and Miro Sutton, an energy specialist new to the CBRE team, discuss the critical role that renewable energy can play in meeting carbon emission-reduction goals and simplify the complexity around implementing sustainability in commercial real estate.Share these insights on sustainability and renewable energy: - Companies should integrate renewable energy and sustainability strategies into their core business plans to remain competitive and resilient.- The renewable energy market is evolving, with regulatory frameworks playing a significant role. Governments can make it easier to achieve environmental goals by writing clear and understandable regulations.- Collaboration among technology, business and regulatory bodies can help to drive innovation and advance sustainability initiatives.- Broader adoption of renewable energy can mean economic and environmental benefits for many companies.- A holistic approach to sustainability, encompassing everything from energy procurement to building materials, is necessary for long-term success.

Community opposition can thwart the most desirable—and needed—development projects. Connecticut developer Jerry Davis and CBRE's Jessica Lall offer tips and strategies for marshalling community support for worthwhile projects and overcoming the instinct to “just say no” to new development.1. Engaging the community early and maintaining open lines of communication are crucial for real estate developers to overcome community objections. By involving local stakeholders in the planning process and addressing their concerns, developers can build trust, gain allies and smooth the path for project approval.2. Local governments that adapt regulations to allow for a variety of housing types can ease the "missing middle" problem—affordable housing that falls between single-family homes and large multifamily properties.3. The affordable housing shortage can provide an impetus for regulatory changes and innovative solutions.4. Successful pilot projects can demonstrate how local communities can benefit from new development.5. Collaboration between government and the private sector can advance worthwhile projects that can be derailed by well-intention community opposition.

Office conversions are nothing new in Cleveland where older assets have long been transformed into higher and better uses. Three seasoned professionals shed light on the financial and logistical complexities of conversions, and the importance of public-private partnerships.Share these Insights on Cleveland Office Conversions: - Cleveland has a long history of converting older office spaces into different uses, long before it became fashionable.- The city has a promising future with a growing downtown resident population. Office conversion projects and broader urban re- development plans will support this trend.- Cleveland's focus on enhancing its natural assets, like the lakefront, is another factor supporting the city's revitalization.

Austin has been transformed over the past 20 years. A traditional government and college town has become a top tech hub and a model for developing metros. Heritage Title Company of Austin's Gary Farmer and CBRE's Bradley Bailey discuss the city's ambitions, growth prospects and challenges.Share these highlights from our conversation about Austin:Austin's economy has diversified significantly in the past 20 years, particularly with the growth of the tech, life sciences and automotive sectors.Infrastructure improvements, such as airport expansions and major roadway projects, are crucial for sustaining growth.Investing in social infrastructure to support students, seniors and everyone in between has been a major focus for Austin.The city's young, educated workforce is a major draw for companies, contributing to the rapid growth of Austin's tech sector.

Zoe Hughes of the National Association of Real Estate Investment Managers and David Chang of CoreNet Global highlight the benefits of a symbiotic relationship between real estate investors and occupiers.Insights to Share: Investors and occupiers increasingly have similar priorities, especially with respect to operational efficiency and sustainability.Data-sharing between occupiers and investors can enhance asset performance.Consistent, open communication is essential for adapting to market changes and meeting the evolving needs of occupiers and investors.

Principal Asset Management's Rod Vogel, a private equity investor, and Chris Duey, a debt specialist, share different perspectives on the current real estate market and identify sectors where they find common ground.Debt and equity investors often see the market differently.Rod Vogel, a private equity investor, remains bullish about the long-term.Chris Duey, a debt specialist, believes a new credit cycle may be emerging as property values adjust to the current interest rate environment.The investors share enthusiasm for data centers, Sun Belt multifamily and selective office investments.

Entrepreneurs Atticus LeBlanc of PadSplit and Christine Wendell of Pronto Housing discuss innovative ways to help address the acute affordable housing shortage. They discuss how new business models, paired with technology, can make housing more accessible and cost-effective for residents and more profitable for property owners.Utilizing new business models, coupled with technology, can make affordable housing more accessible and cost-effective.Optimizing the use of current housing stock through co-living can help to alleviate supply shortages and improve affordability.Using technology to streamline the compliance processes can get qualified residents into affordable housing faster.

CBRE's Laura O'Brien, Chris Ludeman and Bill Concannon offer sage advice and discuss lessons learned as they wrap up storied commercial real estate careers—a must-listen for anyone interested in seasoned perspectives on our industry's past, present and future.Insights to Share: 1. From Laura O'Brien: “Mentorship should actually be intentional. If you ask someone in this company to be your mentor, chances are they will say yes, but you have to make the first move.”2. From Chris Ludeman: “Take the work that we have been asked to do very seriously, but never take yourself too seriously.”3. From Bill Concannon: “Commercial real estate is a complex sale and a long cycle. So building trust requires time with people you know face to face.”

Secondary transactions—sometimes called indirect investing—are on the rise as a way to acquire real estate. Evercore's Jarrett Vitulli and CBRE Investment Management's Achal Gandhi discuss how these investment vehicles can boost returns at lower risk. Secondary transactions are gaining traction as a way to acquire real estate. Often, these transactions offer investors an opportunity to acquire real estate portfolios at a discount, enhancing returns without taking on property-level risk. The secondary market for real estate is expanding, driven by the need for liquidity, strategic portfolio management and recapitalization opportunities. Notable opportunities are available in logistics, multifamily and healthcare real estate. In today's market, secondary transactions can offer core stabilized assets at discounted rates.

In this episode we explore how government policy affects the housing supply, foreign capital flows, office-to-residential conversion and more with Duane Desiderio of The Real Estate Roundtable and Darin Mellott, CBRE's Head of U.S. Capital Markets Research.

Asia Pacific presents attractive investment opportunities, particularly in the multifamily, hospitality and logistics sectors. KKR's John Pattar and David Cheong and CBRE's Greg Hyland discuss capital flows, occupier market fundamentals and the importance of ESG.Insights to Share: 1. Demand for hospitality, multifamily and logistics is growing.2. Office occupiers strongly prefer high-quality, well-managed buildings that follow ESG principles.3. The work-from-home phenomenon did not really impact most countries, so office market fundamentals in most dense cities are strong.

CBRE Global Chief Economist Richard Barkham and Cycle Monitor's Glenn Mueller share insights on what to expect across real estate sectors in the second half of 2024.Insights to Share:· Real estate is a delayed mirror of the economy, says acclaimed forecaster Glenn Mueller.· Amid an anticipated long, slow recovery, specialized asset types like self storage and data centers are seeing increased demand.· Demand for real estate is tied closely to employment growth. · Consumer spending has been resilient, but is showing signs of slowing, and corporate balance sheets remain strong.

CBRE's Laura O'Brien, Chris Ludeman and Bill Concannon offer sage advice and discuss lessons learned as they wrap up storied commercial real estate careers—a must-listen for anyone interested in seasoned perspectives on our industry's past, present and future.Insights to Share: 1. From Laura O'Brien: “Mentorship should actually be intentional. If you ask someone in this company to be your mentor, chances are they will say yes, but you have to make the first move.”2. From Chris Ludeman: “Take the work that we have been asked to do very seriously, but never take yourself too seriously.”3. From Bill Concannon: “Commercial real estate is a complex sale and a long cycle. So building trust requires time with people you know face to face.”

Over 12 million people a month check The Points Guy for tips on making the most of their travel experiences. Brian Kelly, TPG himself, teams up with CBRE's Hotel Research lead Rachael Rothman to explore the latest trends in loyalty programs, what hotel brands can learn from airlines and credit cards, and how you can get into that airport lounge. Insights to Share: Loyalty programs are growing in importance to operators of hotels, airlines and credit cards, many of whom have partnered to increase brand awareness and reach.The proliferation of loyalty program participation is, in some cases, diluting the benefits, but savvy consumers can maximize points by having flexible travel dates and using websites such as point.me to compare redemption value at different airlines and hotels.One way to create brand loyalty is to provide flexibility and a customized experience. Instead of waiting until guests arrive, hospitality brands should reach out in advance and offer access to local guides, spas and restaurants.

In a wide-ranging discussion, RXR CEO Scott Rechler opines on everything from the future of cities to leveraging AI in decision-making to office-to-multifamily conversions.Insights to Share: · Commercial real estate investors can find opportunity in a higher-cost environment.· The outlook for office is brightest in areas where talent wants to live, work and play.· RXR uses market intelligence combined with data to inform their strategies. Key data sources include VTS, cell phone activity, AI and predictive analytics.

The Francis Scott Key Bridge's collapse in late March closed down the Port of Baltimore, resulting in the tragic loss of six lives and threatening massive disruptions to U.S. supply chains. Maryland Port Administration's Jonathan Daniels recounts the Herculean efforts to mitigate the disaster's worst effects and restart port operations in 11 weeks. Insights to Share: To practice effective crisis management, focus only on what's important. The Port of Baltimore partially reopened in just 11 weeks, well ahead of the 11-12 month timeline some experts predicted. The network of East Coast ports has provided flexibility that mitigated the worst impacts on supply chains.

In this bonus episode, a group of CBRE summer interns had some terrific questions to ask our guests.We take a 360-degree look at real estate investing and the capital markets from the perspectives of a pair of influential executives, each with decades of experience in the debt capital markets business. Tom Rugg, Vice Chairman and Co-Head of U.S. Large Loans and Debt and structured finance at CBRE, and Bob Ricci, Senior Managing Director of Lone Star Funds, a player with nearly $90 billion of assets across nearly two dozen funds in its portfolio.

The real estate capital markets can be complex in the best of times and vexing in the worst of times. Lone Star Funds' Bob Ricci and CBRE's Tom Rugg share some insights on succeeding in a sluggish time, finding opportunity amid headwinds and where those headwinds have started to ease.Insights to Share:As challenges in the capital markets persist, properties that were financed with heavy leverage may present opportunities.Higher interest rates will make rolling over debt a pervasive issue for several years.Distress is unlikely to reach the levels of the post-Great Financial Crisis years.

San Francisco has been facing extraordinarily high office vacancy rates since the pandemic. But more recently, the rise of artificial intelligence (AI) has stimulated demand for space and an influx of capital. Real estate investor Glenn Gilmore and CBRE's Mike Taquino discuss the city's history of resilience, culture of innovation and greatest opportunities.Insights to Share: Venture capital firms, particularly those focused on AI, are increasingly establishing offices in San Francisco, which is driving demand for office space. San Francisco's well-known headwinds have caused investors to shy away from what could be generational buying opportunities. AI is driving significant changes in San Francisco's real estate market, in terms of the types of offices needed and the locations most in demand. AI is also encouraging shorter lease terms, reflecting the fast-moving nature of tech companies. San Francisco's tenants are showing a preference for high-end and creative office space, as well as a preference for sustainability and adaptive reuse.

Belinda Román, 2023's most accurate forecaster, according to The Wall Street Journal, and CBRE Econometric Advisors' Dennis Schoenmaker opine on the art, science and technology involved in predicting the ebbs and flows of the global economy.Insights to Share: Belinda Román, Associate Professor of Economics at St. Mary's University, expects GDP growth of 3% this year.CBRE EA's Dennis Schoenmaker expects GDP to hover around 2%.Even with slower economic growth, there will be opportunities in commercial real estate.Regional, national and global forecasting requires a deep understanding of the available data.In commercial real estate, where information has historically been opaque, future forecasting can be enhanced by AI.

Industrial remains a highly desirable asset class despite a cooling of demand and softened market fundamentals. Prologis' Melinda McLaughlin and CBRE's Chris Riley offer insights on the long-term prospects for the sector.Insights to Share: While the last 24 months have seen a slowdown of transaction activity in industrial markets, the long-term prospects remain solid.Conversions to industrial are typically viable where land comprises most of the total development costs, which usually are close to densely populated urban centers.Manufacturing and warehouse facilities have increased automation, adding technology that enables machinery to adapt to changes in the business.

CBRE Capital Markets specialists offer insights on debt availability, capital flows, sector fundamentals and deal pricing, while our Chief Economist comments on the economic outlook.Insights to Share: Uncertainty about the direction of interest rates continues to hamper commercial real estate investment activity.Industrial and multifamily are facing softening fundamentals, but remain historically solid.Office continues to be split between the best assets and most of the rest and retail is growing in importance to institutional investors.Maintaining strong relationships with lenders is always critical, but especially so now.