The Weekly Take from CBRE CBRE

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.

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.