Peter Mathews’ Post

Enjoyed my discussion with Chris Urwin, global real estate research executive, as he shared some of the trends he's seeing in #CRE broadly. I asked him the critical question: where is he encouraging his clients to invest in this market? not surprisingly, he pointed to deal-by-deal distress across all asset classes as a strong area for investment opportunity today. He also pointed me to a piece he wrote that highlights some of the lessons from the structural challenges retail real estate has faced in the recent past for #office owners today. A few takeaways include: - #Hybrid work is here to stay. But many #office owners are reluctant to accept this. This inertia spells opportunity for those that are ready to adapt. - The critical point for office owners is to adapt to the new purpose of the space. Office space should no longer be seen as accommodation for desk space. In 2024 offices exist to create synergies between teammates, establish culture and enhance brand identity. - In investment markets, there remains a lot of negativity about the office market. However, a #contrarianInvestor knows that wherever there is excessive negativity there is opportunity. #Forwardthinkers can leverage attractive entry points in the office market today. Here's the full piece: https://lnkd.in/d4mAYwh9

𝐏𝐫𝐢𝐦𝐞 𝐨𝐟𝐟𝐢𝐜𝐞 𝐫𝐞𝐭𝐮𝐫𝐧𝐬 𝐚𝐦𝐢𝐝 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 The office sector is facing a challenging period, yet opportunities remain for discerning investors. Nicola Franceschini provides insights in our latest Lighthouse Report. 🏢 𝐒𝐞𝐜𝐭𝐨𝐫 𝐨𝐯𝐞𝐫𝐯𝐢𝐞𝐰: In 2023, office returns were the lowest of the European real estate sectors, with investments falling by 59%, but still attracting €39 billion. 🔍 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐚𝐧𝐝 𝐭𝐫𝐞𝐧𝐝𝐬: Digitalisation and remote work have disrupted office demand. Offices are shifting from simple workplaces to interactive spaces, with location and amenities becoming increasingly important. 📈 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: Despite the challenges, well-located office assets with good accessibility and amenities are expected to see rents and values increase, while this may not be the case for the rest of the market. This creates a window of opportunity for investors with different risk return profiles. 💼 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: 1. 𝐆𝐞𝐧𝐞𝐫𝐚𝐥𝐢𝐬𝐭𝐬 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: Looking for quality offices at discounted prices. 2. 𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐢𝐳𝐞𝐝 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: Focus on high returns from distressed opportunities, often in need of redevelopment. Read the full analysis in our latest issue of the Lighthouse Report. Download the full report here: https://lnkd.in/e4wWGjHZ 📷 © BNP Paribas Real Estate Archive #LighthouseReport2024 #RealEstateRecovery #MarketFundamentals #InvestmentOpportunities #EconomicSupport 𝘐𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨 𝘪𝘯𝘷𝘰𝘭𝘷𝘦𝘴 𝘳𝘪𝘴𝘬𝘴, 𝘪𝘯 𝘱𝘢𝘳𝘵𝘪𝘤𝘶𝘭𝘢𝘳 𝘵𝘩𝘦 𝘳𝘪𝘴𝘬 𝘰𝘧 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 𝘭𝘰𝘴𝘴. 𝘗𝘢𝘴𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘢𝘳𝘦 𝘯𝘰 𝘨𝘶𝘢𝘳𝘢𝘯𝘵𝘦𝘦 𝘧𝘰𝘳 𝘧𝘶𝘵𝘶𝘳𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴.

As the dust settles from 2020, the landscape of office real estate undergoes a dynamic transformation. Shorter leases and flexible arrangements redefine traditional norms, while employers prioritise sustainability and social responsibility. Despite the surge in remote work, the return to the office gathers momentum, driving demand for premium locations. Seizing this opportune moment, investing in office spaces emerges as a strategic move for forward-thinking investors. Explore the possibilities with GM CRE Advisors, guiding you through the ever-evolving domain of workplace dynamics. It's time to invest in the future. 🌐 Website: www.gmcreadvisors.com 📧 Email: joshua@gmcreadvisors.com 📞 Phone: +91 8438702179 . . . . . . . . . . . . #office #workplace #officespace #commercialproperty #commercialrealestate #realestate #creinvestment #propertyinvestment #commerpropertyforsale #forsale #realestateagent #lease #cre #consultant #creconsultant #gmcreadvisors

“More organisations are looking for spaces that enable a better workday for employees, in more attractive parts of the city. As companies pay top dollar for quality, the gravitational pull to newer, higher-quality offices leaves a vacuum behind for lower-grade buildings.” Leesman’s founder and CEO, Tim Oldman, recently sat down with BBC Worklife’s Alex Christian to discuss the impact on commercial real estate and city centres as working models continue to adapt. Companies have begun downsizing offices, opting for smaller, higher-quality spaces. Recent Leesman data suggests a 40% reduction in total office space, with Tim noting a shift in preference to newer, optimised offices, creating an opportunity for a new landscape filled with creative, mixed-use hubs. The full BBC Worklife article can be found here: https://lnkd.in/gwV9dyNp #TheHybridFuture #hybridworking #LeesmanIndex

Investors have seen mixed messages over recent months with the rise in popularity of hybrid working evident, while many business leaders have called for a return to the office full time. My colleagues James Layfield-Carroll and Oliver Haunch at Grant Thornton UK LLP examine the commercial office space market and the opportunities available to landlords. #officespace #commercialrealestate #hybridworking

🏢 With systemic changes to the office sector, real estate is facing serious challenges with current yields no longer offering safe and stable returns. More and more occupiers are opting out of traditional office leases and leaning towards flex space, leaving landlords and owners with a lot to think about. 💡 Our latest research targeted at landlords exploring flexible workspace propositions demonstrates that alternative office models can drive cashflow. 📚 Have a read of this whitepaper to discover the upside of shifting your portfolio towards flex. https://lnkd.in/dmpsKHrV Head here to learn how The Instant Group is supporting our landlord partners unlock the potential of flex space across their portfolios https://lnkd.in/dfwCp9_m

The great office divide: premium space thrives while B-grade dies Vanessa Rader Head of Research Ray White Group Many prime office buildings are undergoing a dramatic transformation as landlords race to combat the persistent work-from-home trend. With office investment volumes down as much as 70 per cent year-on-year and yields pushing beyond 6.50 per cent in some major submarkets, owners of prime assets are betting big on amenity offerings to drive occupancy and defend asset values. Read more: https://lnkd.in/gSb7bjWt #raywhitecommercialsydneycityfringe #raywhitecommercial #propertyupdate

When it comes to traditional office leases, businesses often find themselves constrained by rigid contracts and substantial financial commitments. Coworking spaces on the other hand, provide environments wherein flexibility and cost-effectiveness reign supreme. Unlike traditional offices, Venture X Detroit - Financial District offers flexible lease terms that cater to the ever-changing needs of businesses. Short-term leases allow companies to scale up or down as required, providing the agility to adapt to market fluctuations and business growth. We also operate on an all-inclusive pricing model, bundling essential services such as utilities, internet connectivity, and maintenance into a single monthly fee. This transparent pricing structure eliminates the need for businesses to navigate multiple bills and overhead costs, streamlining financial management and budgeting processes. So what side are you on? Team traditional office or team community coworking?? 😏 #Coworking #DetroitCoworking #VentureXDetroit #DetroitOfficeRental

🤔Shift in Office Space Demand? Per this The Wall Street Journal piece, a recent KPMG survey of 400 U.S. CEOs revealed a significant shift in corporate attitudes. "Nearly 80% of CEOs expect employees to return to the office full-time within the next three years"—a stark contrast to the 34% who shared this sentiment earlier this year. This dramatic change is poised to reenergize the office real estate market, with increased demand for adaptable, collaborative office environments. Companies that can provide flexible, modern spaces will have a clear advantage in this evolving landscape. Connect with any of our JLL Canada and SWO Team of Chris Kotseff and Keith Schappert, Well AP to get further insights on the changing market dynamics. #RealEstate #OfficeSpace #ReturnToOffice #CRE Article: https://lnkd.in/gr6kQT3W

Office Tuesday The post-pandemic future of office real estate is characterized by both challenges and opportunities. The pandemic accelerated the adoption of remote work, leading many companies to reevaluate their office space needs. As a result, there has been a noticeable shift towards more flexible work arrangements and a reduction in traditional office space requirements. The demand for high-quality, amenity-rich office spaces remains strong. Companies that maintain physical offices are increasingly seeking properties that offer health and wellness facilities, advanced air filtration systems, and adaptable workspaces. These features are essential for attracting and retaining employees in a competitive labor market. The post-pandemic era has highlighted the importance of resilience and adaptability in office real estate. Property owners and investors must be prepared to adapt to changing market conditions and tenant preferences. This includes investing in upgrades and renovations to meet new health standards and leveraging technology to enhance operational efficiency. #realestate #business #commercialrealestate #investing #diversify #build #grow #challenge #results #service #professional #modesto #california #ca #stanislauscounty #centralvalley #investor #invest #REI #passiveincome #turlock #sacramento