The Weekly Take from CBRE All Star: Ray Washburne on cities, retail, restaurants, energy and more
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Mar 10, 2025 
Ray Washburne, an accomplished investor, shares his insights into the shifting trends in cities and retail. He discusses the critical role local restaurants play in shaping urban identity and how consumer behavior is bifurcating between luxury and value segments. Ray also highlights the growing demand for modern office amenities, while many older buildings face demolition due to high conversion costs. Urban revitalization is on the rise, yet he warns of economic caution with sticky inflation and consumer debt impacting future investments.
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Retail Bifurcation
- Charlie Munger predicted the retail market bifurcation years ago, foreseeing the rise of high-end luxury and value retailers like Costco.
- The middle market would struggle, as consumers seek either luxury experiences or value-driven options.
Office Parallels to Malls
- The office market faces challenges similar to struggling malls, particularly regarding high tenant improvement (TI) costs and antiquated infrastructure.
- These factors disproportionately affect lower-rent buildings, making them financially unviable.
Urban Planning
- City development should prioritize urban planning over architectural accolades to ensure functionality and walkability.
- Integrate housing, restaurants, and sidewalk activity for a vibrant urban experience.