The Weekly Take from CBRE

Ken Rosen has been an astute analyst of the real estate world for 50 years. The highly regarded economist, consultant and educator explains why today’s higher interest rates could force investors back to the fundamentals. He also provides a framework for strategic investment and operational excellence in a rapidly evolving landscape. · Higher interest rates mean returns must come from real estate fundamentals, including better asset selection, leasing, operations and placemaking. · Rosen notes that capital is a short-term asset, while real estate rewards long-term value creation. · Deep repricing, constrained supply and renewed demand can turn challenged markets like San Francisco into compelling opportunities. · Office-to-residential conversions may become a bigger opportunity as cities look for ways to address housing shortages. · Better data can improve decision-making, but it can’t replace human judgment, common sense and a real, experience-driven understanding of market conditions.

Shallow-bay industrial real estate is having a moment. Investor Jordan Schnitzer explains how his family firm was early to recognize the opportunity in this specialized corner of the market. He discusses how building deep knowledge of an asset class and local markets and operating with a long-term mindset have helped Schnitzer Properties grow a differentiated industrial platform. Demand for shallow-bay industrial space has increased as more small and mid-sized businesses need flexible facilities to store, distribute and deliver goods. Schnitzer Properties leaned into shallow-bay industrial early because it rewards hands-on operators with local market knowledge, tenant relationships and disciplined execution. The company’s long-term ownership model supports upfront investment in property quality, landscaping and “sense of arrival,” with the aim of retaining tenants and protecting asset performance. With cap-rate compression unlikely to drive returns, Schnitzer argues that operational expertise and niche specialization are becoming more essential.

With the H1 2026 data in hand, we can see how commercial real estate is evolving in a market where AI, geopolitical events, capital discipline and a resilient economy are rewriting earlier forecasts. CBRE’s Research leaders discuss the company’s 2026 Midyear Outlook—published today—and examine what’s changed since the start of the year and the implications for occupiers, investors and the broader market. Commercial real estate conditions have shifted since the January outlook, with geopolitical uncertainty, capital constraints and a resilient consumer shaping the market at midyear. Limited new supply is becoming an increasing theme across property sectors, creating a new dynamic for occupiers and investors. Quality is increasingly the defining characteristic of successful real estate assets. AI is influencing real estate demand beyond data centers, with implications for tech markets, office footprints, infrastructure needs and future property use.

New York Post columnist Steve Cuozzo has long been a go-to source for the latest buzz about the goings-on in New York City commercial real estate and its iconic restaurant scene. Cuozzo shares five decades of wisdom and insight on all things New York. · Steve Cuozzo’s five decades of reporting and editing provide seasoned insights into what makes New York tick. · The City’s office rebound is strongest in prime corridors. · Restaurants send a powerful signal of a neighborhood’s vitality. · Why it takes more than an appetizing menu for a New York City restaurant to flourish.

Retail is thriving and investors are taking a fresh look at existing assets amid high construction costs and shrinking availablility. Greenberg Gibbons’ Eric Walter and CBRE’s Ryan Sciullo discuss where capital is flowing, why the Southeast stands out and how mixed-use retail can create long-term value. Retail's resurgence is particularly marked in Southeast markets. Mixed-use development plus e-commerce can transform the retail landscape. Data-driven underwriting can improve cash flows. Limited supply creates strategic investment opportunities.

Bob Hart built TruAmerica into a major multifamily owner and operator by betting big on workforce housing. He explains why patience is especially important amid today's high interest rates and evolving capital structures, how he’s tapping into growing demand for workforce and affordable housing and where he's finding opportunity. · Workforce housing remains a compelling long-term investment. · Strong multifamily growth opportunities are available in Midwest and New York Metro markets. · Affordable housing offers sticky demand and government subsidies that support development activity. · Strategic partnerships with co-GPs can deliver funding, credibility and operational alliances. · Patience and disciplined execution matter more in today's market cycle.

With the H1 2026 data in hand, we can see how commercial real estate is evolving in a market where AI, geopolitical events, capital discipline and a resilient economy are rewriting earlier forecasts. CBRE’s Research leaders discuss the company’s 2026 Midyear Outlook—published today—and examine what’s changed since the start of the year and the implications for occupiers, investors and the broader market. Commercial real estate conditions have shifted since the January outlook, with geopolitical uncertainty, capital constraints and a resilient consumer shaping the market at midyear. Limited new supply is becoming an increasing theme across property sectors, creating a new dynamic for occupiers and investors. Quality is increasingly the defining characteristic of successful real estate assets. AI is influencing real estate demand beyond data centers, with implications for tech markets, office footprints, infrastructure needs and future property use. Investors are placing greater emphasis on income returns, lease durability, tenant credit and market selection.

Winning isn't about persuasion, it's about connection. That's what Esther Choy, CEO of The Leadership Story Lab, believes. In her latest book, Winning Without Persuading , Choy asserts that creating genuine connection can unlock success for leaders and deal makers. Choy makes a case for how strategic silence, creative listening and storytelling can build trust and transform relationships. Shift your focus from self to understanding others for stronger business outcomes. Embrace listening to uncover unspoken needs and build trust. Utilize strategic silence and curiosity to enhance communication and influence. Develop your authentic voice; avoid AI-generated content for genuine connection.

Commercial real estate is entering a new era. CBRE Investment Management’s Julie Ingersoll explains why traditional assumptions are being challenged, where investors should focus next and what it takes to create long-term value in today's environment.

How did a property sub-sector built around equipment and vehicle storage garner the interest of institutional investors? Alterra Property Group’s Leo Addimando and CBRE's Will Pike discuss the evolution and growth of Industrial Outdoor Storage (IOS), current market dynamics and its emergence as an increasingly mainstream institutional asset. IOS plays a key role in supporting logistics, infrastructure, construction and services businesses. Location is central to IOS value as users depend on proximity to ports, interstate highways, intermodal facilities, airports and population centers. Zoning restrictions limit IOS supply growth. Institutional capital increasingly views IOS as a traditional real estate asset, narrowing the valuation gap with other industrial properties. Tailwinds like technology and digital infrastructure-driven demand intensify competition for well-located, properly zoned IOS sites.

Before they lifted the Cup, here’s how they built an arena worthy of a champion. Raleigh has long been one of the best-performing secondary markets. Its arena district is poised to be the next engine in its growth. Carolina Hurricanes CEO Brian Fork and Greater Raleigh Chamber CEO Adrienne Cole discuss how the Lenovo Center anchors a mixed-use redevelopment on state-owned land—structured through a complex public-private partnership. In this episode: Public-Private Partnerships: The Lenovo Center anchors an 80-acre, 15-year, $1 billion arena-district redevelopment via a public-private/ground-lease structure. Talent, Talent, Talent: Raleigh’s three tier-one research universities and multi-node job base keep attracting talent, companies and capital. By the Numbers: Strong population growth (2.2 million to 2.6 million by 2027) plus low cost-of-living (around 3% below national average) signal opportunity for investors. Local Color: Lenovo Center preserves a tailgating culture while adding retail, restaurants, structured parking and year-round activation.

Sports venues can be powerful urban growth engines. Entrepreneur Larry Botel, co-owner of the Richmond minor-league baseball team, and CBRE’s Pam Strieffler discuss how mixed-use districts anchored by these venues can transform CBD-adjacent areas. They walk through strategies for attracting outside capital, navigating rising construction costs, drawing year-round visitors, and forging public-private partnerships to create districts that propel economic activity. Sports venues can anchor mixed-use developments, driving urban revitalization. Public-private partnerships and tax incentives are essential for stadium projects. Year-round venue activation draws daily traffic, crucial for surrounding businesses and real estate. Office space is vital for mixed-use success, bringing steady economic activity. Nearby universities can fuel market growth and attract outside investment.

Data centers are the hottest asset class in CRE right now. Digital Realty CEO Andy Power and CBRE's Pat Lynch discuss the sector’s dynamics, including power constraints, evolving location strategies and international markets. They also offer key insights from CBRE’s hot-off-the-presses Global Data Center Trends Report 2026. AI demand fuels near-zero data center vacancy rates in some key markets. Power availability and permitting slow new data center development. Asia and Southern Europe are seeing data center expansion. Community engagement can facilitate data center growth.

What do “higher for longer” interest rates mean for investors? CBRE Investment Management’s Achal Gandhi and Rik Eertink break down the practical ways they identify and pursue opportunities in the living, logistics, office and retail sectors across Europe, in both direct and indirect execution formats. The latest market data from Europe reveals that NOI growth remains the primary driver of investment performance. A K-shaped economic recovery is creating opportunities in both necessity-based and luxury real estate. Secondary investment opportunities in Europe offer investors access to assets at a discount and positive yield spreads. Asset operations are critical for enhancing value. A focus on niche sectors—student housing, healthcare and industrial outdoor storage—enables investors to capitalize on current demand and demographic trends.

Retail real estate requires an operator's mindset. While attending ICSC Las Vegas, CBRE's Americas Head of Retail Research, Ebere Anokute, spoke with us about the state of the market, challenging conventional wisdom and leveraging robust data to navigate an evolving retail landscape. Key Takeaways: · Investors should prioritize assets in secondary markets with strong population growth and limited new retail supply. These markets have lower vacancy rates and above-average rent growth. · Retailers can benefit from repeat foot traffic and community loyalty by locating in centers anchored by grocery stores and in-demand service tenants. · E-commerce accounts for about 16% of total retail sales. This requires retailers to balance brick-and-mortar and digital strategies to sustain growth. · Grocery-anchored retail remains a compelling long-term investment, with stable cap rates and strong demand from other tenants. · Service-oriented tenants—such as fitness, healthcare and personal care—are expanding, offering investors attractive income streams. · Advanced analytics and local market data can pinpoint emerging opportunities and mitigate risks in a rapidly evolving retail landscape.

Futurist and author Jacob Morgan has a plan for building future-ready organizations: cultivating a thriving, accountable workforce; embracing flexibility; and applying technology to foster resilience and employee growth. Future-ready organizations track change early, plan proactively and communicate and act with clarity. Employee experience can be enhanced by setting clear expectations, providing consistent support and candidly communicating performance standards and growth paths. · Learning and growth are essential to career security, which means investing in training and continual skills-building. · The best leaders align support with specific employee needs and career paths rather than enacting broad policies. · AI creates value when it helps people spend more time on high-impact work that requires judgment, creativity and communication.

Retail real estate’s comeback is undeniable. Investor Adam Ifshin details how open-air retail once again became a preferred institutional asset. Recorded at ICSC Las Vegas, Adam discusses the appeal of secondary markets, value-add strategies and the reasons why real estate operations are now the key drivers of returns. · Open-air retail is once again an institutional asset class. · Secondary markets offer compelling growth opportunities. · Integrating healthcare tenants are a powerful value-add. · Skilled operators drive higher returns, especially in tight markets. · Limited new supply is driving long-term rent growth.

Private club entrepreneur Tommy Shuey and CBRE’s Kelly Whaley discuss how these venues fill a growing need for personalized service and engagement outside the home or office, while driving value for both property owners and local communities. · A new “third place” is emerging: Private clubs are filling a growing desire for curated spaces where people can connect outside the home and workplace—a trend worth watching. · Landlords stand to benefit: These venues come with specialized space requirements that can translate into enhanced asset value and differentiated tenant mixes. · Investment opportunities are expanding: “Clubonomics” is carving out a distinct niche, especially in markets undergoing transformation and reinvention. · Dallas offers a blueprint: The city's embrace of upscale amenities outside the traditional downtown illustrates how this trend could impact urban real estate.

Two titans of New York real estate—Larry Silverstein and CBRE’s Mary Ann Tighe—reveal the vision and partnerships behind the rebuilding of the World Trade Center and Downtown Manhattan’s transformation into a vibrant 24/7 community. They make the case for art and culture as catalysts for revitalization, dissect the complexities of public-private collaboration and offer insights into today’s evolving office market.

LBA Realty's John Garrigan and Eric Brown and CBRE’s Matt Carlson discuss the resilient drivers propelling growth in the San Diego market. They also make a compelling case for value-add office investments, dissect the nuances of industrial capital markets and explore the role of relationships in navigating opportunities. • Industrial leasing is gaining momentum. • A flight to quality still defines office demand. • Smart value‑add strategies can restore positive leverage in certain sectors. • In industrial & logistics, infrastructure, power and relationships are key. • San Diego’s economic diversity lessens volatility.