The TreppWire Podcast: A Commercial Real Estate Show 277. Beyond the Cubicle: What Does the Office Data Really Show? LIVE at California MBA WSCREF
Sep 17, 2024
Chad Carpenter, CEO of Reven Office REIT, discusses the evolving office market, revealing insights from the frontline of commercial real estate. He highlights the challenges of high distress rates and delinquency while contrasting urban and suburban dynamics post-COVID. Chad shares strategies for navigating the capital void in office debt and discusses the vital role of loan maturities. Listeners gain valuable perspectives on market resilience and the impact of remote work on investment strategies.
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Ethan Penner's Conference Story
- Lonnie Henry recounts Ethan Penner's story of flying Elton John for a concert at a conference.
- Penner even flew Elton's personal piano to the conference for the performance.
Varied Office Distress
- Office distress is real in certain markets, like Portland, Oregon, with over 40% delinquency.
- However, other markets like Dallas and Miami are performing relatively well, highlighting the local nature of real estate.
Ominous Office Outlook
- Chad Carpenter expresses concern over the current office delinquency rate of 8% and watchlist above 25%.
- He predicts a worsening downturn, exceeding the GFC, due to pandemic effects and rising interest rates.