David Schore

The value of distressed assets in the #CRE marketplace continued to grow in the U.S. into Q3'24. Still, the ramp up is not as rapid as that seen following the GFC as there are different forces at play in the current market. Read more about the source of distress and a chart on comparisons to the GFC by my colleague Alexis Maltin here: http://ms.spr.ly/6049WR4GN MSCI Real Assets

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Investors led by Starwood Capital Group are exploring a potential buyout of ESR Group, a major Asian warehouse developer, sources familiar with the matter revealed. Talks are underway with minority shareholders to assess interest in a take-private deal, with the possibility of some investors retaining stakes. However, decisions are pending, and an official announcement is yet to be made. This move reflects a trend of increasing take-private transactions in Hong Kong, injecting vitality into the region's dealmaking landscape. Notably, ESR's significant presence in logistics and data centers aligns with Starwood Capital's strategic focus on these growth sectors. While both companies have refrained from commenting, discussions indicate the potential for significant developments in the near future. #Buyout #Growth #Investment #Warehouse #RealEstate #HongKong I Bloomberg News I Dong Cao I Pei L. I Manuel Baigorri I Low De Wei (Dexter)

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TPG and PAG took over Cushman & Wakefield in May 2015 when DTZ, the UK-based real estate services firm the venture acquired in 2014, merged with C&W in a $2B deal. The Ontario Teachers' Pension Plan was also invested in the joint venture, but the pension fund is holding on to its shares in C&W. The merger created a combined company with 250 offices in 50 countries. It went public three years later in August 2018, raising $765M at a valuation of around $3.1B. Cushman & Wakefield has a $2.6B market capitalization, based on Friday’s closing price of $11.72. The stock is down around 38% from when it first went public, but it is up 7.6% year to date and has seen a 20% rally in the last month. Shares were down around 2% early Monday.

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Commercial real estate seems to be turning a corner globally. There are still storm clouds out there, and holes in the capital stack that need to be patched for some assets. But the rapid decline in deal volume and pricing came to a halt in the second quarter of 2024. MSCI Real Assets #CRE

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Family offices are making waves in the CRE capital markets! This article by Brian Pascus gives the most thorough snapshot of the recent and current activity of family offices in CRE. I strongly urge my network to read the entirety of the article which includes contributions from a fantastic group of experts. “Every time the market is bottoming out, it would appear to be the most opportune time to buy, and the buying wave is always started by high-net-worth individuals and families,” said Bob Knakal. “What we’re seeing today is that the investment wave is, yet again, being led by high-net-worth families.” Since March of 2022 (the start of interest rate hikes), the majority of my team's deals have been bought by family offices with either 100% cash or bank financing from a bank where they have deposits. #InvestmentSales, #CapitalMarkets, #CommercialRealEstate, #CRE, #RealEstateInvestment; Brian C. Adams, Kevin Aussef, Zach Redding, Nicco Lupo, David Perlman, Jay Neveloff, Dan Berman, Ran Eliasaf, Richard Byrne https://lnkd.in/egMJRSc3

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Appraisers in the U.S. need better tools that allow them to use more judgement in valuing assets. My colleague Willem Vlaming has been developing work showing that in parts of the world with low market liquidity and few comparable sales, that appraisal teams have been better able to capture the decline in asset values. http://ms.spr.ly/6040Yw5ts MSCI Real Assets #CRE

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Let's keep the exciting news rolling; we are not done yet. 🌟 Colliers Capital Markets Leads the Transaction of Heinz 950 🌟 Our Capital Markets team proudly closed another one, hitting the rare feat of two large transactions on the same day. Heinz 950 is an iconic building that is a testament to Pittsburgh's position for the future. It is taking its history and using it as a catalyst to become a technology titan. It is located in the lively Northshore neighborhood and is supported by some of Pittsburgh's strongest demographics. Originally built in 1930 as the Employee Service Building for Heinz employees, the 5-story property was converted into 151 premier loft-style apartments. The Northshore is one of the most sought-after neighborhoods in Pittsburgh, boasting a live, work, and play environment for its residents. "I couldn’t be prouder of the teamwork exhibited by Willis, Matt, and the entire platform.  The two deals we closed today were a close collaboration with Collier’s offices nationwide. The collaboration and synergy are truly remarkable. We are able to achieve results that have not been possible before in our market.” – Bryan McCann, Senior Vice President, Capital Markets #RealEstate #MultifamilyHousing #InvestmentOpportunities #MarketTrends #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets Willis Croker Matthew Reder Gary R. Cooper

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Listed REITs returned +2.3% last week, outperforming the S&P by 54bp and the NASDAQ by 50bp. Real estate was the 4th best of the 11 S&P sectors. Every subsector was positive as data centers (+4.9%), lodging (+4.7%) and office (+3.7%) led while single family rental (+0.2%), malls (+0.7%) and manufactured housing (+1.0%) were relative laggards. Year-to-date returns now stand at +12.1% with valuations only -2.7% below their 2024 highs. Here's your pretty picture.

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Different angle on the property market and also extremely interesting...some optimistic perspectives and some insightful global outlooks. After Vail Resorts investing in Switzerland, KKR is in talks to buy a European hospitality company, from a large global sovereign wealth fund...definitely worth the read... #investment #realestate #property #hospitality

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Holiday sales give us a peak at where consumer sentiment and consumer confidence lies. If it is strong, it may also imply that there will be an increased demand for storage units in the future as a result of the consumer consumption. Also, employment and the job market is still going pretty strong. Employment would then impact increased household formation and demand for specific types of residential development. All in all, we live in a domino effect economy where everything plays into the way another sector performs. We’ll soon see how this year closes and what things may look like for 2025. #economicoutlook #retail #holidaysales https://lnkd.in/gMSF2fUA

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EQT Exeter Expands Footprint in Suburban Boston. A California-based real estate investment firm with a national portfolio of light industrial real estate, sold a pair of distribution centers in Taunton, Massachusetts, to EQT Exeter, the industrial real estate firm formed two years ago through the acquisition of Exeter Property Group by Swedish investment manager EQT AB. The two buildings traded for $37.35 million, or approximately $202.45 per square foot. The assets involved in the sale are located in the Myles Standish Industrial Park and were reported to be fully leased at the time of closing. They include 385 Myles Standish Blvd., 141,990-square-foot manufacturing facility that was recently leased by WorldPac, a wholesale distributor of automotive parts. It sold for an allocated $30.46 million. The other building at 295 Constitution Dr., is listed as a 42,500-square-foot warehouse and sold for an aggregated $6.89 million. https://lnkd.in/g_zRm8b7 #industrialreaalestate #propertyinvestment #realestateinvestment #realestatefirm #warehouse #milliondollarlisting #industrialbuilding

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Andrea Pirrotti-Dranchak (MBA), Expansive's Managing Director, recently sat down with Sarah Maffei (Momberg), Vice President at Foundry Commercial, to discuss the evolution of commercial real estate needs and strategies that are used to ensure both immediate and long-term objectives of businesses are met when considering all of the workspace options available today. "Before COVID commercial real estate was simpler. Typically, you’d calculate your space based on headcount. Now, it’s not about having a desk for every person and enough room for private offices. It’s more about collaborative spaces. Some still want a dedicated desk, but most people come to the office to work together. So, offices are focusing more on shared spaces rather than individual offices, which used to be the norm." Click the link to check out the full article, as well as the full video interview for more insights ➡️ https://hubs.la/Q02yJGNh0 #flexiblework #futureofwork #workplaceinsights

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Excited to be attending the iGlobal Global Leaders in Real Estate Summit, Tuesday, October 15, 2024, New York City.   Given the current market challenges influencing the commercial real estate landscape, I look forward to hearing and exchanging perspectives with other market leaders on such topics as Mezzanine and High Yield Debt Financing, Joint Ventures, and the emerging trends in ESG investing.   #iGlobalevents #DistressedCRE #CRE #realestatefinance #assetmanagement #distresseddebt #maturitywall #highyielddebtfinancing

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How will the upcoming election impact the real estate market in the Washington, DC area? It’s no secret that the Washington, DC market tends to experience some turbulence in the lead-up to a presidential election. The uncertainty surrounding the outcome often leads to a slowdown, with many buyers and sellers pressing pause until things stabilize. Historically, the market gains momentum post-election and into the following year. Given the federal government’s deep ties to the area—through spending, employment, and contracting—the outcome of an election can significantly influence the local economy. New policies and shifting priorities from an incoming administration can impact the confidence of buyers and sellers, making them more cautious about big financial moves, like purchasing a home. In the past few weeks, we’ve started to notice signs of this election-year trend. Some highly desirable properties, which would typically move quickly, are staying on the market longer than expected. While it’s too soon to say for sure without October data, the pattern aligns with the usual pre-election hesitation. Curious about how this might affect your personal real estate plans? Learn more on my website: https://lnkd.in/e7NfaWUq #WashingtonDCRealEstate #ElectionYearTrends #HousingMarketInsights

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Just reviewed the latest Savills North America Global Life Sciences Spotlight report and wow - the insights are fascinating for anyone watching where the CRE industry is headed. Here are 3 things that caught my attention: 1. Boston remains the undisputed king of life sciences, but the UK's "Golden Triangle" (London-Cambridge-Oxford) is emerging as the top non-US cluster 2. Competition for AI + tech talent is reshaping where companies choose to locate - a scientist's salary in Cambridge UK is 42% lower than in Raleigh 🤯 3. Future-focused companies are dedicating 15% of space to collaboration areas - taking cues from tech offices while balancing specialized lab needs The big takeaway? Location strategy isn't just about real estate costs anymore. It's about accessing the right talent pools, fostering innovation, and creating environments where groundbreaking work can happen. Having worked with life sciences clients here in SoCal, I'm seeing these trends play out in real time. The integration of AI/tech talent with traditional research roles is especially fascinating to watch. What trends are you seeing in your market? Read the full report below👇

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Discover key insights from PRISM 2024! Manus Clancy outlines five reasons for optimism in the commercial real estate market. Learn more: https://lnkd.in/eN5P-6cP #LightBoxRE #PRISMPerspectives #PRISM24 #CRE #CommercialRealEstate

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🔍 𝗥𝗲𝗰𝗲𝗻𝘁 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 📊 Here are a few trends that caught my eye: 𝗠&𝗔 𝗮𝗻𝗱 𝗖𝗼𝗻𝘀𝗼𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆 -𝘈𝘤𝘤𝘦𝘭𝘦𝘳𝘢𝘵𝘪𝘰𝘯 𝘪𝘯 𝘔&𝘈: Hodes Weill reports that real estate and infrastructure M&A surged 50% in 1H 2024 vs. 2H 2023, with managers continuing to pursue strategic acquisitions to access distribution and investment capital. https://lnkd.in/gitiwvMA -𝘈𝘴𝘴𝘦𝘵 𝘔𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵 𝘊𝘰𝘯𝘴𝘰𝘭𝘪𝘥𝘢𝘵𝘪𝘰𝘯: BNP Paribas’ potential €5.1bn acquisition of Axa’s asset management arm would create one of Europe’s largest asset managers, and one of the largest real estate managers in the world with more than €100bn of RE AuM. https://lnkd.in/gXpzFkW7 𝗚𝗿𝗼𝘄𝘁𝗵 𝗶𝗻 𝗔𝗣𝗔𝗖 𝗮𝗻𝗱 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 -𝘎𝘳𝘰𝘸𝘵𝘩 𝘪𝘯 𝘈𝘗𝘈𝘊 𝘛𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯 𝘝𝘰𝘭𝘶𝘮𝘦𝘴: JLL’s Q2 2024 Capital Tracker shows APAC investment volumes reached USD 57bn in H1 (up 7% vs. the same period a year ago), led by Japan and Australia in the office, retail, and hotel sectors. https://lnkd.in/gCmSGsfC -𝘚𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘤 𝘋𝘪𝘨𝘪𝘵𝘢𝘭 𝘐𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴: Centuria’s move into liquid immersion cooled data centres, which fit within existing office floorplates, generate significantly higher rental income vs. typical office occupiers, while being more sustainable and energy-efficient, reducing cooling costs, capex, and carbon footprint. https://lnkd.in/gSqqdeNJ 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗣𝗿𝗲𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀 𝗮𝗻𝗱 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗧𝗶𝗺𝗶𝗻𝗴 -𝘊𝘰𝘯𝘤𝘪𝘴𝘦, 𝘋𝘢𝘵𝘢-𝘋𝘳𝘪𝘷𝘦𝘯 𝘙𝘦𝘱𝘰𝘳𝘵𝘴: Coalition Greenwich finds institutional investors prefer brief, data-rich reports, ideally under five pages, highlighting the need for clear, impactful communication. https://lnkd.in/gKzc9aKN -𝘙𝘢𝘵𝘪𝘰𝘯𝘢𝘭𝘦 𝘧𝘰𝘳 𝘖𝘱𝘦𝘯-𝘌𝘯𝘥𝘦𝘥 𝘙𝘦𝘢𝘭 𝘌𝘴𝘵𝘢𝘵𝘦: Mercer suggests now may be a strategic moment to re-enter open-ended real estate funds, as property value corrections have historically set the stage for periods of outsized returns. https://lnkd.in/gCuZZzYJ 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 -𝘎𝘭𝘰𝘣𝘢𝘭 𝘗𝘳𝘰𝘮𝘰𝘵𝘪𝘰𝘯𝘴: Hines announced several key promotions to support its global real estate platform. Notable changes include Steve Luthman leading global real estate services, Ray Lawler taking over the Americas, and Jon Tanaka overseeing the Asia Pacific region. https://lnkd.in/g5tqpnMF

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After predicting a return of capital markets activity in the second half of 2024, commercial real estate's big four brokers reported that buyers and sellers are finally returning to the market in announcing third quarter results recently. https://lnkd.in/eCeBR4mF

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