Fifth Wall’s Brendan Wallace and CBRE’s Connor Hall explore innovation in commercial real estate, from flexible workspaces to AI-driven investment strategies.

Share these insights on proptech investing:

·     Investing in PropTech, like all venture capital investments – is high risk and high reward. Investors typically underwrite 40%+ internal rates of return (IRRs), betting that a few transformative companies succeed and compensate for those that fail.

·     Investing in PropTech provides early access to innovations that enhance asset performance, reduce costs and create competitive differentiation.

·     Artificial intelligence is expected to improve underwriting, asset selection and risk modeling for real estate investors. Those that adopt AI-driven tools early may gain a significant edge.

·     The initial public offering (IPO) market has slowed, but standout exits like ServiceTitan show that public capital is still available for top-tier companies. Investors in private companies should be prepared for longer holding periods prior to exits.

·     The most investable PropTech companies are those that solve challenges for  real estate in operations, capital markets, risk management and elsewhere. Deep industry knowledge is key to identifying winners.

Leading construction and finance experts gathered at Turner & Townsend’s New York office to discuss the impact of tariffs, interest rates, new technology, labor availability and more on commercial construction.

1.    Uncertainty: The construction industry faces significant uncertainty due to volatile interest rates, higher tariffs and costs for materials and labor.

2.    Contract Scrutiny: Detailed contract reviews, especially force majeure clauses, are crucial to manage risks.

3.    Risk Mitigation: Strategies such as early material procurement, storing materials and increased contingencies in contractor agreements are essential to safeguard projects.

4.    Labor Challenges: Rising costs and shrinking labor availability are critical factors affecting construction projects.

5.    Affordable Housing: Despite market volatility, affordable housing projects continue due to the critical need for them and creative financing solutions.

Robinson Weeks Partners’ David Welch and CBRE’s Chris Riley discuss market opportunities and challenges in the industrial real estate sector. Chris will be leaving CBRE to join Robinson Weeks in a senior position effective June 1.

Share these insights on industrial & logistics real estate:

1.     E-commerce helped the industrial sector grow, but a spate of development has created challenges.

2.    Large-scale redevelopment projects, such as transforming former military bases, can yield substantial returns but require flexible planning, environmental cleanup and, often, partnership with the public sector.

3.    Modern industrial buildings are designed with increased clear heights and advanced lighting to meet present and future occupier needs.

4.    Highway and transportation access, utilities availability and environmental regulations are some of the critical factors in industrial site selection.

5.    Staying informed about local regulations, zoning restrictions and community sentiments is vital for securing project entitlements.

In this bonus episode, CBRE's new Global Head of Research, Dr. Henry Chin, discusses the current outlook for commercial real estate for both occupiers and investors.

Key Takeaways on the Economic and Real Estate Outlook

·     Market Sentiment: Real estate fundamentals don’t change overnight. Leasing activity is proceeding across asset classes though some occupiers are delaying decisions until they have more clarity on potential policy changes and their economic impact.

·      Economic Indicators: Monitoring not only job growth and inflation but also softer indicators like travel bookings and restaurant reservations provides a feel of the real economy.

·      Nimble Capital: High-net-worth individuals can move quickly to pounce on attractively priced opportunities.

Galvanize Climate Solutions’ Joe Sumberg and CBRE Chief Sustainability Officer Rob Bernard share insights on achieving high returns through sustainable investment strategies.

·     Profitable Sustainability: Commercial real estate investment strategies that integrate today’s sustainability and decarbonization technologies can enhance returns.

·     Economic Opportunities: There is high occupier demand for green buildings, presenting investment opportunities.

·     Technological Integration is the key: Using energy-efficiency systems and AI can enhance the operating performance and value of real estate assets.

·     Strategic Market Focus: Regulatory frameworks and government incentives can increase the appeal of sustainable investment strategies in certain markets.

Each new generation brings opportunities and challenges to the workplace. Recorded live at ICSC Detroit, leaders from two Michigan-based real estate families, the Schostaks and the Friedmans, discuss the hard but necessary conversations and choices required to maintain a multi-generational enterprise.

Share these insights on succession planning in family-owned businesses:

·      Succession Planning: Establish clear governance and involve family members in decision-making to ensure smooth leadership transitions.

·      Leadership Transition: Transferring leadership to the next generation requires structured processes and clear roles.

·      Family and Business Balance: Balance family dynamics with business operations, making necessary sacrifices for success.

·      Adaptability: Evolve business models and diversify services to stay competitive.

·      Economic Resilience: Maintain liquidity and seize opportunities during economic downturns.

Stories are what make information memorable and communications more impactful. Author and business consultant Esther Choy discusses business storytelling, emphasizing how engaging narratives can be more persuasive and increase connections with audiences.

Share these insights on how to use storytelling to improve the impact of communications

1.    Remember the “IRS” model: The Intriguing Beginning, Riveting Middle, and Satisfying End framework helps professionals craft compelling narratives.

2.    Make emotional connections: Effective storytelling connects with audiences on an emotional level, enhancing understanding of information that influences decision-making.

3.    Be memorable: Storytelling makes your messages more memorable and meaningful.

4.    Express empathy and curiosity: A good business story, like any story, feels human and personal, while delivering an insight.

Wharton organizational psychologist and New York Times-bestselling author Adam Grant shares insights on making better business decisions, fostering innovation and how your personal "challenge network” can lead to superior products and delight your customers.

Share these insights on how to be a successful leader:

1.    Encourage Humor and Humility: They help maintain a flexible and open-minded approach, making it easier to rethink and adapt.

2.    Have Pre-Mortems: Discuss as many potential failures as possible before launching. That way you can prevent or know how to handle problems when they occur.

3.    Eschew Best Practices for Better Practices: “Best Practices” implies there’s only one right way, while seeking “Better Practices” encourages people to innovate and try new things.

4.    Build a Challenge Network: Maintain a group of trusted critics who provide truly honest feedback to improve your decision-making.

5.    Reward Speaking Truth to Power: Encourage employees to ask questions, suggest improvements and challenge outdated ideas.

Manulife’s Jessica Harrison and CBRE’s Kevin Aussef join us from the CBRE Investor Symposium, where they highlight investment opportunities, particularly in alternative asset classes.

Share these insights:

-     Market Momentum: Real estate capital markets are gaining momentum, as the gap between buyer and seller expectations narrows.

-     Strategic Investment: Sectors like affordable housing, cold storage, and industrial outdoor storage present attractive opportunities.

-     Market Reset and Repricing: Investors are setting their sights on higher returns, even for lower-risk assets.

-     New Approach: Manulife has transformed into a private equity real estate investor and launched new investment strategies to capitalize on market opportunities.

-     Tech Advances: AI enhances operational efficiencies and predictive analytics, improving underwriting and investment decisions.

We explore Chicago's vibrant real estate scene with CIBC’s Karen Case and CBRE’s Lisa Konieczka. They discuss market dynamics, Fulton Market's emergence and transformation, and ongoing capital markets challenges and opportunities.

Share these insights about Chicago real estate:

-     The Big Split: Chicago's office market is bifurcated: creditworthy occupiers looking for high-quality space will have limited options while much of the rest of the market languishes amid a glut of space.

-     Important Amenities: Advanced technology, workout facilities and unique features in the best buildings will help  attract tenants and draw people back to the office.

-     Capital Markets Challenges: High costs and limited access to capital have slowed new development significantly, exacerbating the shortage of premium-quality space.

-     Transportation Networks: Chicago's excellent transportation infrastructure supports its diverse economy and enhances its appeal as a business hub.

-     Strategic Transformation: Fulton Market has evolved into a vibrant live-work-play area, attracting major tenants and showcasing successful urban redevelopment.