The Weekly Take from CBRE

U.S. Air Force veteran and consultant DeDe Halfhill discusses effective leadership qualities, debunks management myths and shares tactics for team-building and improving productivity.Insights to Share from DeDe Halfhill: ·      Creating a culture of open feedback is incredibly important for those in leaderships roles but often hard to achieve given the power differential with subordinates.·      Empathy is critical to good leadership.·      The effective integration of diversity is a critical skill for future leaders.

Focus on managing assets and debt effectively instead of waiting for interest rate drops. Innovation is key in a high-rate environment. Understanding market needs requires both human and artificial intelligence. Explore the concept of DeFize and its role in substituting collateral. Shift focus from individual assets to the organization managing them. Gather information from different business lines for effective decision-making. Importance of behavioral economics and data in real estate industry. Use structured data and a human element in data analysis.

In a bonus episode from our 2024 Outlook, Chief Economists Jim Costello (MSCI Real Assets) and Richard Barkham (CBRE) respond to live audience questions about the 2024 commercial real estate outlook.

Our annual must-listen episode. Chief Economists Jim Costello (MSCI Real Assets) and Richard Barkham (CBRE) share their predictions for the global economy, interest rates, capital markets and investment opportunities across commercial real estate sectors.THIS WEEK'S GUESTSRichard BarkhamGlobal Chief Economist, Head of Global Research & Head of Americas Research, CBRERichard Barkham leads a global team of nearly 600 research experts who help CBRE’s clients understand the forces shaping the commercial real estate industry. One of the world’s leading real estate economists, Richard combines the theoretical framework of an academic with hands-on experience in development to deliver actionable insights for real estate investors and occupiers. A frequent source for both clients and journalists navigating moments of economic volatility, he is particularly interested in the role government stimulus plays in long-term economic recoveries.Jim Costello Executive Director MSCI Research Jim is chief economist on the MSCI Real Assets team and is based in New York. He is the principal author of the US Capital Trends report series and a frequent speaker at commercial real estate conferences. At Real Capital Analytics, which MSCI acquired in 2021, Jim was a leader for analysis across the commercial property universe. Jim also spent two decades at Torto Wheaton Research (now known as CBRE Econometric Advisors) working on issues of real estate risk and forecasting. He recently finished serving a term on the Commercial Board of Governors of the Mortgage Bankers Association and is currently a member of The Counselors of Real Estate.

As you make big plans for 2024, here's one of our most popular episodes from the past year featuring author and professor Bent Flyvbjerg talking about how he and his team studied more than 16,000 projects—from skyscrapers to Oscar-winning films—to learn the secrets of their success, and the common thread in their failures.THIS EPISODE'S GUEST:Bent FlyvbjergProfessor, Oxford University and IT University of CopenhagenBent Flyvbjerg is the first BT Professor at Oxford University and the VKR Professor at the IT University of Copenhagen, an economic geographer, and “the world’s leading megaproject expert,” according to global accounting network KPMG. He has consulted on over one hundred projects costing $1 billion or more and has been knighted by the Queen of Denmark.

2023 was a challenging year for commercial real estate, driven by sharply rising interest rates, economic uncertainty and continued slow progress on return-to-office plans. Join us as we look back at everything from market conditions to labor issues to office amenities to emerging technologies and more.Insights to Share: ·     The commercial real estate market in 2023 was challenged by sharply rising interest rates, but fundamentals largely held up, aside from the office sector.·     Technological advancements, particularly artificial intelligence (AI), played an increased role, especially in Data Centers but elsewhere as well.·     U.S. seaports made strides in solving pandemic-era bottlenecks and other challenges.

Mixed-use real estate can be thought of as several discrete projects—executed in parallel—within a block-by-block area, to create a whole that’s greater than the sum of its parts. Three seasoned CRE professionals, Katie Grissom of Nuveen, Sondra Wenger of CBRE Investment Management and Colin Yasukochi of CBRE, discuss the metrics that matter most when measuring synergies across residential, retail, hospitality, office, medical and entertainment.Insights to Share: Mixed-use real estate is key to creating vibrant neighborhoods.Strong, vital neighborhoods are a critical amenity that helps office tenants attract the most productive talent.Investing in mixed-use environments is a key way to help differentiate investment strategies.

Kimco Realty’s (NYSE: KIM) President and Chief Investment Officer Ross Cooper says that retail and mixed-use property owners and tenants have become partners. In a wide ranging discussion he talks about the challenges facing real estate investors today, the evolution of the shopping experience and the possibilities for mixed-use properties.SOME KEY INSIGHTS:1. Taking on equity partners through joint ventures can offset high capital costs and support diversification efforts.2. For e-commerce companies, a physical retail presence can often complement digital platforms.3. Now is the time to explore investment opportunities outside conventional real estate, such as infrastructure projects or green bonds targeted at energy-efficient construction. 

Serial entrepreneur Marc Lore revolutionizes the food delivery business with his latest venture, Wonder. Lore discusses the booming food delivery market, the unique features of Wonder's restaurant brand, and their ability to deliver a variety of 'fine-fast' food quickly.

Rob Lilwall was a high school teacher who, in need of a new direction, decided to walk across Siberia. This was the start of an avocation that he parlayed into a profession. Rob’s story is about conquering fears, overcoming setbacks, building inner resilience and reaching for higher goals, whether it’s climbing mountain or closing real estate deals.“One of the great things about an expedition, which just simplifies life so much, is you have one very, very clear goal.” ABOUT THIS WEEK'S GUESTRob Lilwall, AdventurerRob started his career as a high school geography teacher in England, but has transitioned into a career of adventuring and motivational speaking. His expeditions include a three-year expedition cycling from Siberia to London, a solo walk across the Taklamakan Desert and cycling across the U.S. Across his adventures, he has learned that our abilities are not fixed, and that we can grow in many ways, including to become more positive, courageous and resilient, especially when put in positions outside of our respective comfort zones.