CRE – Yellow Brick Road vs. The Boulevard of Broken Dreams

The CRE Weekly Digest by LightBox

This week, the LightBox team welcomes Spencer Levy, global client strategist and senior economic advisor for CBRE, for a compelling conversation about the seismic shifts in commercial real estate since the pre-COVID era. Levy compares the “Yellow Brick Road” era of low interest rates, strong fundamentals, and geopolitical stability before 2020 with today’s more turbulent landscape, shaped by inflation, high interest rates, and global uncertainty. He recommends practitioners follow the mega-trends reshaping the CRE industry: the reshoring of manufacturing, and the transition from CBDs (central business districts) to live-work-play neighborhoods. The discussion also delves into how adaptive reuse offers a potential lifeline for office assets in a world where Class B buildings face mounting challenges. While cracks are appearing in multifamily and industrial fundamentals, Levy surprises the team by spotlighting renewed strength in top-tier office markets. This episode is chock full of great takeaways as well as some fun detours that include Levy's passions for cooking and music.
Have questions for the podcast team? Reach out to [email protected].
00:56 Yellow Brick Road vs the Opposite

04:11 Interest Rates will Stay Higher for Longer

06:13 Megatrends Shaping Commercial Real Estate

10:26 Asset Conversions, Rezoning and the Case for Patience

16:40 Spencer’s Recommendations: Build Today and Follow the Megatrends

22:52 Open Air Retail Opportunities Driven by Consumer Sentiment

27:07 Spencer Levy's Personal Touch: Music and Brisket

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