Patrick Elwood, Senior Vice President CBRE’s Post

📊 Exciting Insights from CBRE's Q1 2024 Chicago Suburban Figures Report 📈 Key takeaways from CBRE's Q1 2024 Chicago Suburban Figures Report: 1️⃣ Tenant urbanization trends: Companies are migrating to urban/amenitized areas within the suburbs like Oak Brook, Schaumburg, and O'Hare. 2️⃣ Occupier sentiment: Occupiers are focused on rightsizing their footprint and committing to an additional 3-5 years in the market. Renewals account for over half of leasing velocity. 3️⃣ Landlord sentiment: Capital freezes among large institutional landlords impact deal-making. Those able to fund lease transactions have an advantage. Stay informed on the dynamic real estate landscape in the Chicago suburbs. For more insights or to discuss how these findings may impact your business, reach out to me. Let's drive success together! #RealEstateInsights #ChicagoSuburbs #CBRE #MarketTrends

CBRE released its Q2 report for the Atlanta Commercial Real Estate market just a few weeks ago. There were quite a few interesting updates to note: - In the second quarter, office space availability remained high at 32.6% due to ongoing reassessments by tenants. - Despite visible tenant move-outs and consolidations, leasing activity has increased significantly, with 23.7% more space signed compared to early 2023. - Average asking rents have slightly decreased to $31.24 per sq. ft. year-over-year, while rates for prime buildings rose by 4.5% quarter-over-quarter, reflecting a continued trend of moving towards higher-quality spaces. Read the full report here: https://bit.ly/3zPz68K #commercialrealestate #crenews #atlantarealestate

Honored that 5 of our brokers, Allan Mendelsberg, Dave Hammack, Rob Glaser CCIM SIOR, Rick Kleiner, and Tom Nieman, presented and moderated at Southern Arizona CCIM Chapter's 32nd Annual Commercial Real Estate Forecast. Thank you to Mark Isenberger for the recap! They each shared insights, trends, and their expertise for their sector: ⚙️ Industrial: The industrial market faces low supply and absorption, limited usable land, cap rate compression, potential inventory impact from demolitions, rental rates ranging from $1 to $1.20 NNN, high construction costs up to $250/SF. 🏠 Multi-Family: 100+ unit properties are not selling due to high interest rates, while rent growth is strong due to limited supply. However, escalating costs and challenges with tracking section 8 vs luxury rents vs persist, along with crime and homelessness issues. Concessions are returning and value-add projects dominating amidst stabilized inventory struggling in the current interest environment. 🛒 Retail: "Med-tail" is growing, while retail vacancy rates rise slowly. Traditional malls face uncertainty, potentially repurposed by larger, single users. "Experiential" retail, like Dave & Buster's, remains resilient to online competition. 💼 Office: "The Office Is Back!", especially in Tucson, where we are more insulated compared to larger markets. Small businesses thrive and larger corporations adapt to remote work, making hybrid models permanent. Tucson's office occupancy outpaces larger markets due to supply constraints, with medical office buildings leading the way. #CRE #leadership #Tucson #CCIM

🏙️ Emerging Market Trends in Colorado's Commercial Real Estate for 2024 Ripley attended ULI Colorado’s Emerging Trends in Real Estate on January 18th.  Insightful presentations by PwC and the Federal Reserve Bank of Kansas City, as well as well as a panel discussion presented highlighting key trends in Colorado's commercial real estate landscape. Here are some pivotal takeaways: + Debt Dynamics: 2024 centers around commercial real estate debt. A staggering $1.2 trillion of commercial real estate debt is maturing by 2026, impacting deal-making significantly. + Asset Spotlight: --> Offices in Distress: The office sector continues to face the most distress. Many office properties may be refurbished and amenitized to attract tenants or be torn down in place of new development in the coming years. --> Multifamily remains the darling of the Denver metro: While multifamily assets have high exposure risks in the coming years, the expectation is for continued growth – especially in senior housing and workforce housing development. + Housing Affordability: Homeownership costs continue to climb, consuming 46% of average take-home income in 2023, a significant 13% increase over three years. + Work-from-Home Impact: In the Denver metro, 25% of employees work from home, leading to ground-floor retail struggles and business closures in traditional downtown environments. + Denver's Market Position: Climbing to #12 in hot market rankings due to a focus on residential development. + Investment Trends: Multifamily and hotel sectors in Denver see high investment retention. However, office spaces anticipate major shifts. + Economic Indicators: -->Workforce Shifts: An increase in prime age workforce participation contrasts with a drop in the 55+ segment. --> Shelter Inflation: Remains at 6% year-over-year, with no decline expected in 2024. Panel Predictions: Muted optimism, with an emphasis on strategic deals, and the impact of energy policy shifts on development costs. 🔍 Overall, the sentiment for Denver's commercial real estate is a blend of cautious optimism and strategic adjustment, with a keen eye on debt dynamics and evolving market trends. #CommercialRealEstate #MarketTrends #DenverRealEstate #EmergingTrends #RealEstateInvestment #ULIColorado

The Portland market is showing signs of trending in a positive direction. This revitalization of downtown is making this progress thanks to efforts by both local government and private sector groups. JLL's Jessica Ramey, Executive Vice President and co-lead for Agency Leasing, and Patricia Raicht, Head of Research for U.S. West and Latin America dive deeper into these trends. #JLLPortland #MarketWatch #TenantRepresentation Curious to learn more? Read here: https://co.jll/4clnRm0

CBRE released its Q2 report for the Atlanta Commercial Real Estate market just a few weeks ago. There were quite a few interesting updates to note: - In the second quarter, office space availability remained high at 32.6% due to ongoing reassessments by tenants. - Despite visible tenant move-outs and consolidations, leasing activity has increased significantly, with 23.7% more space signed compared to early 2023. - Average asking rents have slightly decreased to $31.24 per sq. ft. year-over-year, while rates for prime buildings rose by 4.5% quarter-over-quarter, reflecting a continued trend of moving towards higher-quality spaces. Read the full report here: https://bit.ly/3zPz68K

A recent MSCI report highlights a significant downturn in downtown Boston's property values. Boston CBD had the largest decline globally with a 30.4% year-over-year drop in the central business district as per the RCA CPPI Global Index. This downturn outpaces declines in other major cities, including Chicago, D.C., Manhattan, and San Francisco, underscoring a broader trend of falling commercial property prices. Despite the steep decline in the central business district, the entire Boston metro experienced a 7.5% decrease which was less severe than some other metros. This downturn is attributed to a widening gap between buyer and seller price expectations, ongoing distress in the office market, and substantial anticipated tax revenue losses. The report suggests further price adjustments may be necessary to reconcile buyer and seller positions. Recent transactions and leasing activity indicate a challenging outlook for Boston's office market. #bostonrealestate #bostoncdb #capitalmarkets #bostoncapitalmarket https://lnkd.in/eyivywZ6

As 2024 unfolds, the commercial real estate market shows mixed signals across various sectors. Retail is finding its footing with fewer expected bankruptcies, while office spaces face growing vacancies, and multi-family units grapple with rising distress. At CRE | TAG, we see these trends not just as challenges, but as opportunities. With retail expected to stabilize and an ongoing demand for efficient use of land, our expertise in due diligence and subdivisions becomes increasingly valuable. With our owner's mindset, we strategize to convert market fluctuations into profitable ventures for our clients. Partner with us to leverage our expert insights and proactive solutions tailored to thrive in tomorrow's market landscape. #CRETAG #RealEstateInvesting #MarketTrends #RetailRevival #OfficeSpace #MultifamilyHousing #CommercialRealEstate #PropertyTypes #InvestmentStrategy #RealEstateTrends #InvestmentInsights #CRETag

Colliers Quick Hits | Retail SF/Capita: Unlocking Development Potential Across Markets • Since the heyday of the housing boom of the mid-2000s, retail construction has been relatively restrained.  • Overall, the amount of space per capita has decreased since 2006, per data from CoStar.  • Six markets have seen their SF/capita numbers shrink by at least 10 SF over that period.  • Two of the six are major markets, with space/capita numbers below the national average.  • Identifying markets with strong population growth and limited development could yield strong development potential. 

Wrap up your Monday with #HRE's Daniel O'Brien, who sat down with WWD to discuss the evolving dynamics of the commercial real estate landscape, highlighting the disparities between thriving sectors & struggling industries. Don't miss out on this essential read for landlords, tenants & investors alike! If you have questions or want to discuss your own real estate interests, please reach out to Daniel directly. #hilcorealestate #thoughtleadership #leaseadvisory