355. Waterfront Flex, Medical Office Boom, Multifamily Delinquencies, and More | The Deal Desk

Key Takeaways:

Waterfront Industrial & Blue Highways: Using waterfronts for industrial logistics is an emerging trend, with efforts in NYC to shift freight from road to boat transport, relieving congestion and creating new opportunities for flex-space developers.

Marijuana Industry & Small Towns: Cannabis companies are revitalizing struggling towns by providing jobs and increasing tax revenue, though they face regulatory and licensing hurdles.

Silicon Valley Real Estate: Real estate development in the region is at its lowest since 2013, with high leasing activity but elevated vacancy rates. Older office assets may provide conversion opportunities.

Medical Office Buildings (MOBs): MOBs are a stable and in-demand investment, with strong occupancy, resilient rents, and increasing demand driven by healthcare trends.

Multifamily Delinquencies: Multifamily property loan defaults have risen, with delinquencies at nearly 7%. Higher interest rates and flat rents present challenges for owners and investors.

Overall Market Opportunities: Watch for flex-space and last-mile logistics opportunities, be open to cannabis sector tenancies, pursue MOB investment and conversions of underutilized office space, and approach multifamily investments cautiously.