Secondary transactions—sometimes called indirect investing—are on the rise as a way to acquire real estate. Evercore’s Jarrett Vitulli and CBRE Investment Management’s Achal Gandhi discuss how these investment vehicles can boost returns at lower risk. 

• Secondary transactions are gaining traction as a way to acquire real estate. Often, these transactions offer  investors an opportunity to acquire real estate portfolios at a discount, enhancing returns without taking on property-level risk. 

• The secondary market for real estate is expanding, driven by the need for liquidity, strategic portfolio management and recapitalization opportunities. Notable opportunities are available in logistics, multifamily and healthcare real estate. 

• In today's market, secondary transactions can offer core stabilized assets at discounted rates. 

In this episode we explore how government policy affects the housing supply, foreign capital flows, office-to-residential conversion and more with Duane Desiderio of The Real Estate Roundtable and Darin Mellott, CBRE's Head of U.S. Capital Markets Research.

Asia Pacific presents attractive investment opportunities, particularly in the multifamily, hospitality and logistics sectors. KKR’s John Pattar and David Cheong and CBRE’s Greg Hyland discuss capital flows, occupier market fundamentals and the importance of ESG.

Insights to Share:

1. Demand for hospitality, multifamily and logistics is growing.

2. Office occupiers strongly prefer high-quality, well-managed buildings that follow ESG principles.

3. The work-from-home phenomenon did not really impact most countries, so office market fundamentals in most dense cities are strong.

CBRE Global Chief Economist Richard Barkham and Cycle Monitor’s Glenn Mueller share insights on what to expect across real estate sectors in the second half of 2024.

Insights to Share:

·     Real estate is a delayed mirror of the economy, says acclaimed forecaster Glenn Mueller.

·     Amid an anticipated long, slow recovery, specialized asset types like self storage and data centers are seeing increased demand.

·     Demand for real estate is tied closely to employment growth. 

·     Consumer spending has been resilient, but is showing signs of slowing, and corporate balance sheets remain strong. 

CBRE Global Chief Economist Richard Barkham and Cycle Monitor’s Glenn Mueller share insights on what to expect across real estate sectors in the second half of 2024.

Insights to Share:

·     Real estate is a delayed mirror of the economy, says acclaimed forecaster Glenn Mueller.

·     Amid an anticipated long, slow recovery, specialized asset types like self storage and data centers are seeing increased demand.

·     Demand for real estate is tied closely to employment growth. 

·     Consumer spending has been resilient, but is showing signs of slowing, and corporate balance sheets remain strong. 

CBRE’s Laura O’Brien, Chris Ludeman and Bill Concannon offer sage advice and discuss lessons learned as they wrap up storied commercial real estate careers—a must-listen for anyone interested in seasoned perspectives on our industry’s past, present and future.

Insights to Share:

1.     From Laura O’Brien: “Mentorship should actually be intentional. If you ask someone in this company to be your mentor, chances are they will say yes, but you have to make the first move.”

2.    From Chris Ludeman: “Take the work that we have been asked to do very seriously, but never take yourself too seriously.”

3.    From Bill Concannon: “Commercial real estate is a complex sale and a long cycle. So building trust requires time with people you know face to face.”

Over 12 million people a month check The Points Guy for tips on making the most of their travel experiences. Brian Kelly, TPG himself, teams up with CBRE’s Hotel Research lead Rachael Rothman to explore the latest trends in loyalty programs, what hotel brands can learn from airlines and credit cards, and how you can get into that airport lounge.

 Insights to Share:

• Loyalty programs are growing in importance to operators of hotels, airlines and credit cards, many of whom have partnered to increase brand awareness and reach.
• The proliferation of loyalty program participation is, in some cases, diluting the benefits, but savvy consumers can maximize points by having flexible travel dates and using websites such as point.me to compare redemption value at different airlines and hotels.
• One way to create brand loyalty is to provide flexibility and a customized experience. Instead of waiting until guests arrive, hospitality brands should reach out in advance and offer access to local guides, spas and restaurants.

In a wide-ranging discussion, RXR CEO Scott Rechler opines on everything from the future of cities to leveraging AI in decision-making to office-to-multifamily conversions.

Insights to Share:

·      Commercial real estate investors can find opportunity in a higher-cost environment.

·      The outlook for office is brightest in areas where talent wants to live, work and play.

·      RXR uses market intelligence combined with data to inform their strategies. Key data sources

include VTS, cell phone activity, AI and predictive analytics.

The Francis Scott Key Bridge’s collapse in late March closed down the Port of Baltimore, resulting in the tragic loss of six lives and threatening massive disruptions to U.S. supply chains. Maryland Port Administration’s Jonathan Daniels recounts the Herculean efforts to mitigate the disaster’s worst effects and restart port operations in 11 weeks. 

 Insights to Share: 

1. To practice effective crisis management, focus only on what’s important. 
2. The Port of Baltimore partially reopened in just 11 weeks, well ahead of the 11-12 month timeline some experts predicted. 
3. The network of East Coast ports has provided flexibility that mitigated the worst impacts on supply chains. 

In this bonus episode, a group of CBRE summer interns had some terrific questions to ask our guests.

We take a 360-degree look at real estate investing and the capital markets from the perspectives of a pair of influential executives, each with decades of experience in the debt capital markets business. Tom Rugg, Vice Chairman and Co-Head of U.S. Large Loans and Debt and structured finance at CBRE, and Bob Ricci, Senior Managing Director of Lone Star Funds, a player with nearly $90 billion of assets across nearly two dozen funds in its portfolio.