The Weekly Take from CBRE

Greg Juceam, President and CEO of Extended Stay America, shares his expertise on the rising extended-stay hotel sector. He highlights the investment potential in secondary markets and the operational simplicity of these accommodations. Juceam discusses the benefits of ownership combined with franchising, supporting scalable growth. He also touches on the diverse demand from construction crews to digital nomads, predicting stable occupancy. Finally, he delves into strategic expansions and the impact of mega trends reshaping the industry.

Boryana Zamanoff, a Senior Wealth Strategist at BNY Mellon, expert in capital deployment, joins CBRE's Zaahir Syed, Managing Director and co-head of real estate for private funds, along with Compie Newman, Executive Director focused on family offices. They dive into accessing the vast but elusive capital from high-net-worth individuals and family offices. Topics include the importance of trusted relationships, evolving investment strategies in current market conditions, and the next generation's impact on investment preferences, emphasizing flexibility and sustainability.

Ryan Barber, Global Head of Property at Aon, Raphael Dawson from Walton Street Capital, and CBRE’s Chris Nassa discuss critical strategies in property and casualty insurance amidst recent calamities. They emphasize innovative risk modeling for informed decisions and advocate for captive insurance as a cost-effective strategy for large portfolios. The trio also highlights the significance of accurate data in shaping premiums and managing risks, while stressing the importance of having in-house experts to navigate evolving market trends.

Hala Moddelmog of the Woodruff Arts Center and CBRE’s Nicole Goldsmith discuss Atlanta's  economic and cultural development, highlighting the role of diverse talent, sports, the arts and entertainment and a welcoming business climate in its rise.Share these insights from this week’s episode: Corporate support, cultural institutions and educational resources fuel Atlanta's economic development.The growing preference for mixed-use environments and high-amenity office spaces has attracted global brands and talent.Major sporting events like the 2026 FIFA World Cup and strategic urban development projects will continue to shape Atlanta's global standing.Addressing infrastructure challenges, particularly in the transit system, are key to supporting future growth.One of the most educated cities in the U.S., Atlanta’s ability to retain its diverse, highly skilled workforce is critical for sustained success.

 What will 2025 hold for the global economy and real estate? Selma Hepp, CoreLogic Chief Economist, and Richard Barkham, CBRE Global Chief Economist, discuss where they see opportunities and challenges and a few things to keep an eye on.Share these insights from this week’s episode: Despite continued high interest rates, the economy is expected to perform well in the near term, driven by a resilient consumer.Housing sales are expected to remain subdued due to persistently high mortgage rates and ongoing affordability Issues.Real estate is at the beginning of a new cycle with retail and industrial particularly well positioned.Increased insurance costs and property taxes have exacerbated housing affordability challenges.

Belinda Román, 2023's most accurate economic forecaster and Associate Professor at St. Mary’s University, joins Dennis Schoenmaker, global co-head of forecasting at CBRE. They discuss the balance between data and qualitative insights in economic forecasting. Román predicts 3% GDP growth while Schoenmaker forecasts 2%. They explore the role of AI in enhancing commercial real estate predictions and the significance of labor dynamics amidst geopolitical changes. Their insights highlight the complexity and opportunities within the evolving economic landscape.

It's that time of year - when we reflect on milestone moments of our fifth season. 2024 had some major themes including artificial intelligence's impact on commercial real estate, office conversions, evolving market conditions—and re-examine them all, as well as take our beginning-of-the-year economic forecasts to task to see how it turned out. 

Dallas is a dynamic, fast-evolving city whose diversified economy and business friendly policies make it an attractive place for investors and companies. Longtime Dallas developers Lucy Billingsley and Lucy Burns offer insights into the city’s future.Share these insights from this week’s episode: Dallas offers plentiful industrial and multifamily real estate opportunities thanks to its rapid growth and economic diversification.Investors and businesses benefit from Dallas' pro-business policies and relatively low tax burdens.Demand for convenience and amenities is driving the trend toward master-planned communities that offer live-work-play environments.Dallas’s growth hinges on continuing infrastructure investment, including transportation and public services to support its expanding population.

Commercial real estate offers many different career paths. Learning how to overcome challenges and finding the right mentors are key to success in all of them. Trailblazing executives including Laura Clark (Rexford Industrial), Barbara Perrier (CBRE) and Elisabeth Troni (CBRE Investment Management) shared personal anecdotes and sage advice during CBRE’s recent Power of WE conference.Share these insights on pillars of a successful CRE career: Lead with integrity:Making decisions that may be contrary to your immediate financial gain builds trust and loyal, long-term clients.Seek out mentors and feedback:Mentorship is crucial for career development and informal feedback fosters skill enhancement.Challenge the status quo: Questioning traditional norms can lead to progress and achievement. Say yes to new challenges and opportunities.Balance flexibility with visibility in the workplace:Flexible work arrangements can be beneficial, but being present in your professional environment is also key to advancement.Favor unity over separation of your work-life:Completely separating professional and personal time is hard, whereas embracing work-life unity means emphasizes purposeful engagement while in both spheres.

Mary Ann Tighe, CEO of CBRE's New York Tri-State Region, discusses Manhattan's ongoing transformation. Drawing on decades of commercial real estate deal-making experience, Mary Ann discusses the resurgent office leasing market, office-to-residential conversions and long-term opportunities.Anticipated Market Transformation: Investors should prepare for a major shift in New York’s office market, reminiscent of the historic changes that occurred in the 1920s.Long-Term Leases: Despite the rise of remote work, many New York City businesses want to sign long-term leases due to the high costs and complexities of space renovation.Investment Opportunities: New York has significant opportunities to convert antiquated office buildings into residential or mixed-use properties.Government Incentives: Understanding and leveraging government tax incentives can be crucial in making redevelopment projects financially viable.Cultural Edge: New York's creative energy and foremost cultural and social amenities  remain a strong draw for people, businesses and capital. This enables the City's resilience and continuous evolution.