| The work-from-home trend has had a devastating impact on office buildings across the country. Will this go on forever? How have rising interest rates added to the problem, and is office real estate a problem for US banks? These are the questions I posed to two senior-level professionals at CBRE, a global leader in commercial real estate services and investments. Russell Ingrum is Vice Chairman and Senior Partner, CBRE Texas Capital Markets. Brad Zampa is Executive Vice President and Senior Partner, CBRE Northern California Capital Markets. We discuss the current state of the office properties market, the challenges that lie ahead, possible solutions, and a timeline for recovery. Some of the issues Russell, Brad, and I cover include: - The segment of the office market that is doing well - The influence of inflation on the office market - The “four buckets” of capital and why we may be facing a liquidity crunch - Obsolete office properties and the economics of conversion - HR departments are now making relocation decisions - The motive behind some recent headline-grabbing property defaults For more top-level insights like the ones in this video, I invite you to attend our live, online Strategic Investment Conference. Hear over 40 experts share their best market ideas and their warnings about the economy and geopolitics. Get your Virtual Pass here: https://www.mauldineconomics.com/sic-2023/order-main-alt CBRE publishes market research that you can access here: https://www.cbre.com/insights#sort=%40publishdate%20descending&numberOfResults=9 Stay informed on the big trends by subscribing to Global Macro Update here: https://www.mauldineconomics.com/global-macro-update Time stamps: 0:00 - Introduction 1:59 - The office market landscape 6:25 – A possible liquidity crunch 7:10 - The “four buckets” of capital 9:08 - Banks, the Fed, and recession 12:48 - Opportunities and options 17:18 - Bank challenges 19:57 - Aging properties and conversion 25:40 - Risk-off climate 26:30 - Desperately seeking conviction 31:07 - It’s an asset pickers market 34:10 - Default as a negotiation tactic 37:16 - Closing thoughts on the Fed’s agenda |
Each week, investors and financial professionals around the globe turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. And for good reason. John is a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance—Thoughts from the Frontline—one of the most widely read investment newsletters in the world.
Tags: Featured
5 pings