Doug Owen, SIOR

The value of distressed assets in the #CRE marketplace continued to grow in the U.S. into Q3'24. Still, the ramp up is not as rapid as that seen following the GFC as there are different forces at play in the current market. Read more about the source of distress and a chart on comparisons to the GFC by my colleague Alexis Maltin here: http://ms.spr.ly/6049WR4GN MSCI Real Assets

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The latest NAIOP Office Space Demand Forecast projects that net demand for office space will shrink by 11.8 million square feet over the last three quarters of 2024 and will contract an additional 4.5 million square feet in 2025. Tenants have had several quarters to adapt to hybrid schedules and adjust their use of space accordingly. The forecast's authors expect that economic factors will increasingly drive leasing decisions going forward. However, persistent inflation, high interest rates and the continued possibility of a recession suggest the office market is not likely to rebound this year. #office #cre https://lnkd.in/eBzNVQHf

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Insights from a recent Q&A interview focusing on sourcing and tracking ESG data for occupiers. Here are a few key questions addressed: - Defining "green leases" and the differentiating components from conventional leases. - Typical sustainability clauses in green leases. - Collecting data to report environmental benefits, along with specific frameworks. - Engaging landlords in sustainability aspects and strategies for compliance. - Leveraging lease administration systems for tracking compliance. - Keeping up-to-date with evolving green lease practices.

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Learn how architectural designers are reimagining home layouts to maximize usable space and minimize wasted square footage. https://bit.ly/3Y1QIbm

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Multi-tenant light industrial properties have proven to be remarkably resilient amid significant economic challenges. Fueled by robust fundamentals, high tenant demand, and minimal new development, these properties have demonstrated consistent and enthusiastic rent growth. This trend presents exciting investment prospects for numerous private real estate investors. See this interesting white paper by BKM Capital Partners about the economic viability of light industrial. https://lnkd.in/ggUTn5v7

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Despite high hopes for a rebound, the first quarter of this year saw a continued decline in CRE transaction volume. What's more striking is that this decline is evident even when measured in terms of space, rather than dollars, transacted. Senior CRE Economist @XanderSnyder examines this decline in volume and what may spark a recovery. #cre #realestateinvesting

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CBRE's 2024 U.S. Life Sciences Talent Trend report highlights The Columbus Region as a top R&D market. Notably, Ohio stands out with three or more life sciences labor clusters nationwide, showcasing a strong ecosystem. Eddie Pauline, Ohio Life Sciences attributes this success to strategic investments in talent and the overall life sciences landscape. Dive deeper into the insights in Carrie Ghose's article on Columbus Business First & explore the full report here: https://lnkd.in/gVaZS85v

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Workplace design has evolved to support hybrid work. Read JLL's article to learn how to make budget friendly investments to enhance a hybrid workplace. https://lnkd.in/g6SjpNt7

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The workplace landscape is shifting dramatically, with 83% of global CEOs anticipating a full 5-day in-office work week within the next three years. Lauren Hasson and I believe that if you haven't yet articulated how, when, and where works happens, now is the time - and we recently shared our keys to success with GlobeSt.com. Discover key strategies, from effective communication to balancing productivity needs, to help your organization thrive in this changing landscape. #FutureOfWork #WorkplaceStrategy https://lnkd.in/egnwNdNa

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Are you ready for Holiday? Let us make it easier with some insights on what to expect for 2024. The results of the Holiday Survey are in!

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More data reinforcing the importance of viewing employees as consumers of office space and how that is shaping the market. Looking at post-2010 trophy office availability compared to the overall rate in key markets tells the story of employees who expect a better experience when working on-site because they have a choice. At Avison Young, we explored the topic of "Worker as Consumer" in detail as one of our 2024 Drivers of Change. https://lnkd.in/ggnSeYgD Even in non-trophy buildings, there is so much we can do to make the employee experience vibrant, productive and memorable. It takes a data-driven workplace strategy, listening to your "office consumers", and a great team of advisors like Avison Young who know your local market, understand the business case for workplace, and have delivery expertise. #poweredbypeople #workplacestrategy #workplacedesign

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Dive into the Future of Housing with Greystar! Andrew Ord shared insights on our innovative build-to-rent projects with Mary Salmonsen of Multifamily Dive discussing target markets, programming philosophy, and the evolving build-to-rent space. Check it out below. #RealEstate #BuildToRent #Greystar #Innovation #FutureOfHousing #InterviewInsights

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PwC is out with its "Emerging Trends in Real Estate" in conjunction with Urban Land Institute reviewed by CoStar Group. It's an upbeat picture of which markets are recovering the best and the outlook based on survey data. But the office market remains a mystery in this study. ✴ "Even with many companies' escalating their in-person mandates, 5 million more employees are working from home at least one day a week compared to this time last year, according to the U.S. BLS. ✴ "Demand is weak, the vacancy rate has not stopped rising, expenses are high, and the return to office has plateaued." Demand for legacy office space remains in limbo or falling. While valuations have fallen at least 50%, some to 80% or more, below previous high valuations, the bottom is still not visible except for some properties proposing adaptive reuse. When redeveloped, these conversions to apartments (primarily) will have a reliable income stream to finance. No office redevelopment has this otherwise. Hence, very few lenders will step up today for an office redevelopment as office space

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On top of being a wonderful friend, spouse and parent to our kids, there have been and continue to be many professional perks and career benefits to being married to this wonderful woman and someone in similar industry. 1) I have a built-in market leader and commercial office trends consultant on demand (Check out her latest monthly column below) 2) I have 2x the professional/friend network 3) My most trusted advisor is equally purpose driven and puts wind in my sails, yet has vested interest in finding the holes in my plans. 4) She can talk shop and understand when I drone on about XY&Z. 5) My travel companion whether traveling together around town or across the globe, equally loves to discuss and critique every development, public space, city, hotel lobby and restaurant with an eye to the details. She's always down discuss the merits and failings of places from design & function to layouts, transit & culture (we have a tradition on dates of making a point to visit the restroom and come back with our critique of the level of attention & details in these often deprioritized places). As life has evolved through the years from eager young professionals, to working parents, to leadership roles, mentorship or whatever, we've had to be intentional and draw careful boundaries around work vs. other roles and prioritize things appropriately. However, I'm fortunate to have an equal and capable partner who wants to blaze a trail and is just as determined to have meaningful impact in work and personal life. #workspouse

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Was fun to speak with Marc Selvitelli, CAE on NAIOP's podcast recently. Our conversation was wide-ranging, as we discussed current challenges and opportunities in the office market. I continue to be convinced that we will look back at this time as a the beginning of something special--where cities, governments, businesses, and real estate investors came together to create better mixes of real estate and substantially better work spaces for office workers. We can reimaging the office and reimagine cities: https://lnkd.in/ed5qGc8i

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Please see the link below, like, share and follow

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The movement to make offices more sustainable is well underway – and the limited availability of high-quality, green buildings is making the market increasingly competitive. Whether you’re looking to relocate, renew your current lease, or redesign your space, integrating sustainability into your company’s office strategy is crucial. 

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Yesterday’s Fed rate cut was bigger than expected, how does that influence the commercial real estate market? 🏦 Erin Lavelle shared insights with Commercial Property Executive, discussing how this rate cut influences debt markets and leverage in the space and why the next 6-12 months present compelling opportunities for dealmaking. Read the full article here: https://ow.ly/8LpR50TrhTX #interestrates #fed #cre #realestate

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"High-performing workplaces have shared factors, according to the research. Common spaces in high-performing workplaces include those for informal conversations, for video conferences, for focused concentration, and for relaxing or recharging." A look into how office design impacts office performance. #officedesign #officeleasing #tenantrep #hybridwork

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