The Weekly Take from CBRE CBRE

Mexico’s industrial real estate market is benefiting from the need for more resilient supply chains. PGIM’s Enrique Lavín, DHL’s Guillermo Espinosa Armendáriz and CBRE’s Yadira Torres-Romero explain the advantages and challenges of nearshoring.

Insights to Share:
 
Nearshoring is spurring industrial activity beyond Mexico’s border cities as companies seek inland nearshoring opportunities.The lower cost and availability of labor explains why companies have relocated or expanded manufacturing operations in Mexico.The cost of capital, even for transactions denominated in U.S. dollars, is lower than in the U.S.

Fried Frank’s Jon Mechanic and Michael Werner—attorneys steeped in the in’s and out’s of New York City dealmaking—share thoughts on the office market, affordable housing, recent legislative changes and much more.

Insights to Share:
 
Despite the headlines, there is budding optimism in some New York commercial real estate sectors, particularly Class A office.Legislative efforts to promote affordable housing and sustainability are both incredibly important and challenging.New York City provides a nexus of talent, amenities and capital that is hard to replicate.

What’s attracting young people, businesses and investment capital to Nashville? Highwoods’ Alex Chambers and CBRE’s Elizabeth Goodwin explain how the Music City has created a cool culture.

Insights to Share:
 
·      Nashville has attracted talent and businesses due to its affordability and high quality of life.
·      Nashville’s local government has fostered the city’s growth by  investing in entertainment and sports, prompting a surge in related industries, as well as tech and retail. 
·      With growth poised to continue, driven by the influx of new residents, Nashville offers an opportunity for private investors to buy Class B office properties.

With the U.S.’s fourth-strongest labor market and massive live-work-play appeal, Tampa, Florida is one of the country's hottest real estate markets according to a recent Wall Street Journal analysis,
 
Tampa investor/developer Darryl Shaw and CBRE’s Mike DiBlasi explain how the city has become a magnet for institutional capital, expanding employers and top talent and what other mid-size markets can learn from it.

Insights:
 
Developers who want to build in culturally important areas need strong partnerships with the local community leaders and municipal government.Tampa’s historic Casa Ybor development demonstrates what’s possible when a long-term vision is coupled with consistent population growth.Tampa is experiencing a surge of development across commercial real estate sectors as a result of public-private investment in their downtown waterfront.

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.

“What Do You Want to Do Before You Die?” asks celebrity author Ben Nemtin in his best-selling book of 100 bucket list items. Ben shares thoughts on finding your purpose, protecting your mental health and achieving your most ambitious goals.

Insights to Share:
 
·      Overcome fear. People who avoid taking risks because they are afraid to fail can often fall short of their goals. Empowering people to be their true selves is a critical component of a strong work culture.
·      Set ambitious goals. People who set ambitious goals for themselves are more likely to be successful in careers and life.
·      Take action. It is not enough to simply set goals; people need to act on them. Small steps forward create positive momentum.