The Weekly Take from CBRE CBRE

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.

Julia Coronado, keen-eyed observer of the economic landscape, shares wide-ranging insights on the economy, monetary policy, commercial real estate and more.

“The macro economy is a lot more resilient to the headlines than what you read every day."
-Julia Coronado
President and Founder, Macro Policy Perspectives &
University of Texas Finance Professor

Insights from the episode:
 
1. Inflation should continue to cool in most countries around the world.

2. The neutral interest rate is expected to be higher than the last cycle due to a healthier household balance sheets, supportive fiscal policy and improved productivity.

3. Challenged multifamily developers should see some relief in the next few years, as interest rates drop, demand for housing increases and financing conditions improve.

GUEST BIO:

Julia Coronado
President and Founder, Macro Policy Perspectives
Julia Coronado founded MPP because she believes independent research can provide the most objective and relevant analysis to inform decision making in an uncertain world. Julia is a Clinical Associate Professor of Finance at the McCombs School of Business at the University of Texas at Austin. She has more than a decade of experience as a financial market economist including serving as Chief Economist for Graham Capital Management and BNP Paribas, and as a Senior Economist at Barclays Capital. After receiving her Ph.D. in Economics from the University of Texas at Austin, Julia worked for the Federal Reserve Board of Governors in Washington D.C. for eight years where she regularly briefed the Board and contributed to the FOMC forecasts. She is a regular commentator in financial media, including CNBC, Bloomberg, Marketplace, and the Wall Street Journal. 

How do you get the most out of a global real estate portfolio? Siemens Real Estate CEO Stephanie Dorsey offers insights on everything from the cost of capital, the flight to green, site selection criteria and return-to-office strategies that benefit everyone.

Insights to Share:
 
·      Siemens is on the leading edge when it comes to attracting talent, sustainability and technology manufacturing.
·      Power is becoming an increasingly important consideration in companies’ site location strategies.
·      Sustainability is quickly becoming a must-have for occupiers and some, like Siemens, will not lease space from landlords that don’t support their carbon-reduction goals.

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.