The Weekly Take from CBRE

Portugal has become an unexpected real estate powerhouse in Europe. Arrow Global’s John Calvao and CBRE's Francisco Horta e Costa discuss the revival of Portugal’s economy, surging investment in hospitality, logistics, data centers and student housing, the resilient Lisbon and Porto office markets and ways to address a chronic housing shortage.* Portugal's economic turnaround has fueled robust real estate opportunities.* Hospitality and logistics lead growth, attracting global capital.* Emerging sectors like data centers and student housing are seeing outsized growth.* Multifamily housing faces persistent supply challenges.* The Lisbon and Porto office markets are exhibiting strong performance.

AI’s massive investment surge is reshaping commercial real estate. Chemonics' Victoria Slivkoff and CBRE's Colin Yasukochi discuss AI's influence on tech talent and its role in revitalizing key office markets and driving physical infrastructure needs.* AI drives massive investment into data centers and physical infrastructure.* San Francisco's office market is experiencing an AI-driven turnaround.* The AI revolution is creating specialized talent hubs and increasing demand for sustainable energy.* AI will boost productivity and necessitate workforce adaptation.

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.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.

Food halls are no longer just a trend—they are a high-impact amenity for improving a property’s dwell time, leasing velocity and NOI. Recorded at Central Perk in Times Square, a quartet of experts from Colicchio Consulting and CBRE explain how the best food halls prioritize operations and programming, new beverage and evening strategies, the lowdown on operator selection and deal structures that offer better risk-sharing and returns.- Food halls aren’t food courts: Independent concepts + community + beverage drive performance.- Hybrid work has changed the operating model: Fewer office days demand longer-hour, programming-led models.- Conversions can happen everywhere: Converting buildings to their highest and best use can work for both offices and food halls, especially in suburban markets.- Alignment between operators and landlords: Vendor stall flexibility and percentage-rent leases can benefit operators and investors.- Market snapshot: Colicchio Consulting believes the sweet spot of sizing is around 10,000–15,000 sq. ft. with average buildout costs around $400/sq. ft., depending on the market.

AI is reshaping the business landscape, including commercial real estate. Data scientist and author Sandy Pentland and CBRE’s Sandeep Davé discuss how the intersection of emerging technologies and human insight is driving better decision-making for investors, occupiers and building operators.Commercial Real Estate & AI: For occupiers, AI can create significant operating efficiencies and enhance the workplace experience; for investors, increased efficiency can boost asset values.People and Technology: AI is enhancing—not replacing—human decision‑making across organizations.Data Quality: Good data management is the foundation for applying AI most impactfully.Productivity: Every organization is balancing innovation and productivity gains with responsible deployment that considers privacy, governance and human‑in‑the‑loop practicesLong-term Outlook: AI is broadening visibility across markets, helping to foresee unanticipated or exogenous events and surfacing new ideas.

Recorded at the CBRE Women’s Network Power of WE conference, this episode offers a rapid-fire, insights-rich tour of major U.S. commercial real estate markets. Our subject-matter experts provide inside views of how different regions are navigating supply, demand and economic forces—from industrial and logistics to multifamily, office and retail—and insights on where investors and occupiers may find value in 2026.National CRE outlook, including signs of asset repricing stabilization, improving liquidity and transactions momentum. Industrial dynamics in Southern California, from manufacturing fundamentals and port-driven demand to pockets of strength and ongoing vacancy challenges. Sector trends, including data centers, alternative assets, big‑box scarcity, rent trends, and how corporate occupiers are re‑entering the market. Multifamily performance across gateways, the Sun Belt and the Midwest, driven by slowing construction cycles, demographic patterns and evolving investor interest. Emerging and opportunity markets, from South Carolina’s growth to resurgent metros like San Francisco, Seattle, Phoenix and smaller high-growth cities such as Boise. 

PwC’s Karl Russo and CBRE’s Henry Chin share their outlook for the U.S. economy and commercial real estate in 2026, exploring opportunities and risks to growth.Key Takeaways:The U.S. economy should remain resilient in 2026.While the labor market finds a new equilibrium, many companies are racing to upskill and retain talent as they adopt AI processes.Reshoring and infrastructure improvements are expected to drive industrial growth in secondary markets.Data centers are positioned as a leading sector amid structural undersupply.

Alex Mehran Jr., CEO of a third-generation family developer, walks us through the transformation of Bishop Ranch—a master-planned community in San Ramon, CA. Mehran shares valuable lessons on reinventing a suburban office park into a vibrant, mixed-use destination. Mixed-use suburban developments are gaining strong appeal.·      Amenity-rich office space drives tenant demand and retention.·      Short-term, flexible leases can dovetail well with corporate occupier’s needs.·      Residential conversions of obsolete suburban office parks can enhance long-term asset value.·      Planned communities thrive with diverse housing and retail integration.

 Alison Fragale, author of the provactively titled “Likeable Bad Ass," breaks down the science of status—offering practical advice on how leaders can use warmth and competence to drive respect and gain greater influence.Key Takeaways:1.        Status—being respected and regarded—leads to influence, access to resources, and career advancement.2.        People judge quickly, and have high regard for those who are well-intentioned and competent.3.        Hard work needs to be seen to ensure effort is valued.4.        You can leverage “swing thoughts” to improve your career. [SI1]  [SI1]Do not really understand this. Remind me what “swing thoughts” are

Wharton organizational psychologist and New York Times-bestselling author Adam Grant shares insights on making better business decisions, fostering innovation and how your personal "challenge network” can lead to superior products and delight your customers.1.    Encourage[SI1]  Humor and Humility: They help maintain a flexible and open-minded approach, making it easier to rethink and adapt.2.    Have Pre-Mortems: Discuss as many potential failures as possible before launching. That way you can prevent or know how to handle problems when they occur.3.    Eschew Best Practices for Better Practices: “Best Practices” implies there’s only one right way, while seeking “Better Practices” encourages people to innovate and try new things.4.    Build a Challenge Network: Maintain a group of trusted critics who provide truly honest feedback to improve your decision-making.5.    Reward Speaking Truth to Power: Encourage employees to ask questions, suggest improvements and challenge outdated ideas. [SI1]Please run these by Adam

Jamie Hodari, CBRE's CEO of Building Operations & Experience, spotlights where he sees the biggest opportunity across commercial real estate: workplace experience. He discusses how a company’s space can attract tenants and enhance the employee experience, enriching people’s lives and increasing business effectiveness. Everything is operational real estate: Real estate companies are evolving from asset focused businesses to operating platforms, requiring high-quality management relentlessly focused on workplace experience.AI and data utilization are no longer nice-to-haves: Using AI to manage and interpret data is crucial for optimizing building operations.Markets are adapting to accommodate hybrid work models with flexible office usage: Urban markets especially put significant emphasis on making downtown areas vibrant.Finance institutions are catching up: The finance industry must recognize and adapt to the operational nature of modern real estate.Flight-to-quality is expanding: The focus for landlords and occupiers will increasingly be on creating spaces that people find enriching and valuable, not just functional.

J.P. Morgan Asset Management’s Josh Myerberg breaks down the 2026 real estate outlook, why quality assets and operational excellence matter, and where savvy investors are finding opportunity now. Don’t miss these timely insights from one of the industry’s top portfolio strategists.J.P. Morgan Asset Management is optimistic about 2026, driven by expectations of lower interest rates and resilient real estate fundamentals.Quality matters more than ever—top-performing assets and strong operators are expected to outperform, while tertiary markets and lower-tier properties carry greater risks.Retail real estate has made a strong comeback, and high-quality office space is showing positive momentum, especially in major markets like San Francisco and New York.Operational excellence and risk management—including attention to emerging risks—are critical for long-term portfolio success.Diversification remains key: even the best assets need to fit together strategically to reduce volatility and capture growth opportunities.

Shorenstein CEO Brandon Shorenstein and CBRE’s Patrick Gildea discuss why the office market is poised for a comeback. Hear what they have to say about risk-adjusted returns, property conversions, the importance of workplace amenities and more.Key takeaways on office investing: Office market is recovering: Investment activity in the office sector is rebounding with more bidders and increased debt availability. Investment strategies have shifted: Investors are focused on cash flow and downside protection, with cash-on-cash yields reaching 8%–15%. Micro-market dynamics are key amid a flight to quality: Prime assets in live-work-play submarkets are outperforming, while obsolete buildings face demolition or conversion, reducing overall supply. Conversions are limited: Selective repositioning is critical, as only a small percentage of office buildings are structurally viable for residential or hotel conversions. Occupier priorities have changed: Tenants now prioritize wellness, sustainability and experiential amenities, driving demand for high-quality spaces.

Clarion’s Brent Jenkins and CBRE’s Zaahir Syed discuss how capital raising for real estate is rapidly evolving. They provide insights on fund development, non-traded REITs, emerging opportunities in private wealth markets and more.Key takeaways on raising and deploying capital: Sourcing real estate capital is diversifying, with growing emphasis on private wealth and new opportunities to tap into the defined-contribution (DC) market.Accessing retail capital and 401k plans through DC channels is potentially a major area of growth, requiring new product structures and daily liquidity solutions.Fund managers must strategically align vehicle structures with investor objectives and market conditions for both short- and long-term capital needs.

Mortenson’s Maja Rosenquist and CBRE’s Gordon Dolven examine one of real estate’s most dynamic sectors. They discuss how AI’s growth has accelerated data center development, how site-selection strategies are evolving and the challenges posed by power constraints.  

CBRE Investment Management’s Co-CEO and CIO, Adam Gallistel, offers insights on where real assets investors can find strong return opportunities in today’s market. He discusses shifting strategies amid higher interest rates, alternative asset classes, the role of operational expertise and why Europe offers attractive relative value right now. Prioritize operations and asset selection: Gallistel emphasizes that “hope is not a strategy”—returns will come from income growth and strong asset selection rather than relying on market-driven cap rate compression. Diversification matters: Niche sectors like data centers and student housing offer non-correlated income streams and resilience compared to traditional “big four” asset classes. Europe looks compelling: Europe offers relative value and growth potential, making it an attractive complement to a U.S. property portfolio. Infrastructure and power are critical: CBRE IM is investing in solutions like battery storage and renewable energy to capitalize on growing demand for power in the digital economy. Overlooked markets show promise: Gallistel sees opportunities in U.S. Midwest real estate markets as supply dynamics shift.

Coca-Cola’s Michael Moore shares how the iconic brand activates its workplace in 82 countries. The company seizes on flexibility, local culture and innovative design to drive effectiveness, space utilization, brand impact and global growth.·     relationships and talent pools in 82 countries. ·     Coca-Cola balances global brand consistency with local cultural expression, using design to reflect community identity within the framework of corporate standards. ·     A flexible real estate strategy, favoring leased over owned space and shared offices in emerging markets, enables Coca-Cola to scale quickly while managing risk. ·     The company’s “Main Street” workplace model is intentionally designed to foster collaboration and efficiency by integrating amenities and flexible, open space. ·     Success is measured by how well the workplace supports productivity, employee sentiment and business outcomes.

Gensler’s Diane Hoskins explains the workplace design trends that are meeting the evolving needs of today’s workforce. She discusses how hybrid work shapes office plans, the importance of reflecting local culture and AI’s growing impact.Key takeaways on Gensler’s views of workplace design: ·     Workplace design is in flux: Today's offices require a rethink of the work environment, shifting from rigid layouts to flexible spaces. ·     One size doesn’t fit all:  From law firms to tech companies, bespoke design strategies—rooted in culture, function and employee satisfaction—are outperforming cookie-cutter solutions across sectors. ·     Destination workplaces are on the rise: Companies are investing in spaces that attract talent and foster collaboration, turning offices into places where people want to be. ·     AI is changing the game: Artificial intelligence is revolutionizing architectural visualization, enabling real-time design iteration and deeper client engagement.

CBRE Global Head of Research Henry Chin sizes up Q3 investment activity, which was stronger than anticipated, and reveals which asset classes are best positioned for Q4 and 2026.Key Takeaways on Commercial Real Estate Investment Trends U.S. real estate is entering a prime investment window as repricing and improving fundamentals create opportunity.Retail and office sectors are attractive plays, as rents bottom out and occupier demand increases.Investors should explore value-add strategies and secondary assets. Demand should spillover as vacancy in top-tier space continues to shrink and future supply in office and retail remains constrained. Alternative assets are evolving from niche to institutional, but investors should remain disciplined about entry pricing and mindful of the needed operational expertise.With volumes poised for double-digit growth in 2026 amid a durable market recovery, investors can benefit from early positioning and data-driven conviction.

Author Jean Twenge, Ph.D., explains the implications of four different generations working together. As Gen Zers increasingly join millennials, Gen Xers and a shrinking cohort of baby boomers in the workforce, their varying needs, attitudes and aptitudes are driving workplace changes.·     Generational shifts are reshaping the workplace: Organizations are navigating the most pronounced generational transition in decades, with differing expectations around leadership styles, collaboration and work-life harmony.·     Delayed life milestones impact real estate demand: Trends like marrying later in life, postponing homeownership and having fewer children are catalyzing demand for adaptable, amenity-rich properties.·     Technology is a key driver of generational change: From smartphones to social media, tech has fundamentally altered how each generation communicates, works and interacts—creating both opportunities and challenges for office culture and productivity.·     Hybrid work reflects generational preferences: The way different generations value in-person collaboration, flexibility and autonomy gives hybrid work models staying power.·     Empathy is essential for cross-generational leadership: Understanding the distinct values and experiences of each generation, and applying that knowledge in how you communicate  and set policy, can build stronger connections with colleagues.