Topics discussed in the podcast include risks and opportunities in cybercrime, macroeconomic conditions, and ESG reporting. The transformative energy and opportunities in rapidly growing cities like Bangalore and Mexico City. The importance of diversification and equity in urban design, creating inclusive spaces and the impact of climate change. Shifting real estate market dynamics, reduced office demand, repurposing office buildings, and a young CEO's track record. Cyber preparedness for finance leaders, growth and opportunities in the hospitality sector. Assessing risks to economic optimism and introducing Babel language learning platform. The role of AI in language learning, the growing American market for Greek tourism, and the impact of climate change on vineyards and sustainability.
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Quick takeaways
The real estate market is experiencing division, with strong performance in industrial, residential rental, and data center sectors, but challenges in the office sector due to flexible work arranagements.
Brookfield is raising funds to buy distressed commercial real estate assets, targeting sustainable redevelopment projects in the top third of office buildings, despite defaulting on over $3 billion of US commercial mortgages.
Alternative real estate assets like student housing, senior housing, medical life science, and self-storage present positive outlooks due to demographic trends and supply shortages, offering resilience and potential growth opportunities.
Greece's Minister of Tourism is promoting tourism year-round, emphasizing sustainable practices and a diverse range of attractions beyond the traditional summer months including outdoor exploration, gastronomy, cultural experiences, and ski resorts.
Deep dives
Bifurcated real estate market with haves and have-nots
The real estate market is highly divided, with some sectors performing well and others struggling. Industrial, residential rental, and data center sectors are performing strongly, but the office sector is facing challenges due to flexible work arrangements. There are opportunities in alternative real estate assets like senior housing, self-storage, and student housing. The market is expected to remain bifurcated for the foreseeable future.
Brookfield's approach to distressed commercial real estate
Brookfield, despite defaulting on over $3 billion of US commercial mortgages, is raising funds to buy distressed commercial real estate assets at discounted prices. The company is targeting the top third of office buildings and has a focus on sustainability and redevelopment projects. While there is distress in the office space, it is not expected to cause a broader real estate crisis.
Outlook for 2024 in alternative real estate assets
The outlook for alternative real estate assets is positive, particularly in student housing, senior housing, medical life science, and self-storage. Demographic trends and supply shortages create favorable conditions for these sectors. Alternative assets performed well during the global financial crisis and the pandemic, providing resilience and potential growth opportunities.
Impact of the pandemic on alternative real estate assets
Alternative real estate assets, such as student housing, self-storage, and senior housing, fared well during the pandemic. The storage sector experienced increased demand as people looked for temporary storage solutions during life events. Student housing remained in demand as students preferred to stay in off-campus apartments. These assets displayed consistent cash flow and potential for re-pricing in inflationary environments.
Expanding Tourism in Greece
The Minister of Tourism in Greece, Olga Kepaloyani, is in the United States to promote tourism and encourage more Americans to visit Greece. In 2023, tourists spending by US travelers increased by 62.4% compared to the previous year. The minister wants to extend the tourism season in Greece and promote the country as a year-round destination. She highlights the moderate year-round weather and various activities such as outdoor exploration, gastronomy, and cultural experiences. The focus is on striking a balance between tourism revenue and preserving the natural and cultural environment of Greece.
Addressing Challenges and Maintaining Sustainability
Minister Kepaloyani acknowledges the challenges of balancing tourism growth with the preservation and sustainability of local communities, natural resources, and cultural landmarks. She emphasizes the importance of sustainable practices and protection of the marine environment, notably in coastal areas and for the blue economy. The government aims to establish a framework for responsible cruise ship tourism and is reviewing regulations to ensure a balanced approach. The minister also highlights Greece's commitment to becoming a sustainable tourism destination, with plans to have all hotels sustainable by 2030.
Promoting Year-round Experiences and Activities
In an effort to expand the tourism season beyond the traditional summer months, Minister Kepaloyani promotes year-round experiences in Greece. She mentions activities such as trekking, rafting, and exploring the countryside and mountainous regions. Gastronomy, including renowned Michelin-star restaurants, is highlighted, while also mentioning the affordability and quality of Greek cuisine compared to the US. The minister notes the presence of ski resorts in Greece and upgrades being made to ski facilities. The goal is to offer a diverse range of attractions and experiences for visitors throughout the entire year.
Featuring some of our favorite conversations of the week from our daily radio show "Bloomberg Businessweek." Hosted by Carol Massar and Tim Stenovec
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