The Weekly Take from CBRE

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    Reward Speaking Truth to Power: Encourage employees to ask questions, suggest improvements and challenge outdated ideas.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.

Author Sam Conniff argues that the boldest leaders don’t play it safe—they have a strategy for rewriting the rules. This episode explores how pirate-inspired thinking and resolute action can help executives navigate uncertainty, unlock innovation and lead with courage amid change.·     Leaders who embrace change as a strategic advantage can outperform peers.·     Championing shared values, self-governance and rule-breaking offers a provocative framework for rethinking organizational culture.·     Emotional intelligence can be a critical competency for business executives.·     Prioritizing the short-term over the long-term can cost organizations capital and credibility.·     Leaders should challenge industry “settled” truths to unlock workplace innovation.

 This week we shine a light on REITs in the U.K. Two London-based experts discuss what’s driving deal flow, investment strategies and long-term returns, especially in logistics, retail and hospitality.·      Triple-net REITs in the U.K. offer predictable income and resilience through market cycles.·      Urban logistics and convenience retail are leading sectors, driven by consumer behavior and e-commerce demand.·      Sub–£20-million lot sizes are drawing interest from family offices and regional investors focused on low-debt, high-efficiency deals.·      M&A is accelerating REIT scale and relevance, enabling cost synergies, dividend growth and greater appeal to global capital.·     Interest rate spreads and swap differentials can make U.K. real estate increasingly competitive against European and U.S. markets.

Barings’ John Lippmann and CBRE Investment Management’s Elisabeth Troni share strategies for navigating risk and unlocking value in core real estate investment portfolios. From alternatives to secondary markets, top funds are adapting to outperform in a shifting landscape.Key takeaways on evolving investor strategies: ·      Alternatives are reshaping core portfolios, with newer funds allocating heavily to data centers, seniors housing and single-family residential.·      Operational expertise is a performance driver, particularly in shorter-lease-term asset types that require service-oriented models.·      Smaller markets offer strategic upside, with investor focus shifting to high-growth, affordable areas like El Paso and West Palm Beach amid demographic and affordability trends.·      Flexible fund structures allow managers to hold through market cycles and avoid forced sales in illiquid environments.·      Benchmarking tools enhance insights into income vs. appreciation return potential and help investors measure returns.

MetLife Investment Management’s Sara Queen and CBRE’s Tommy Lee explore the shifting dynamics of commercial real estate investing. They offer seasoned insight on a range of topics, from NYC office to data centers to build-to-rent residential and much more.Key takeaways on real estate investing:  ·      High-net-worth investors are stepping in aggressively during the current market cycle, while institutional capital remains cautious and highly selective. ·      Data centers benefit from sustained strong demand, but require disciplined underwriting due to lease rollover risks and rising competition. ·      Many institutional investors prefer targeted strategies in assets like build-to-rent, industrial and retail, giving them more control and precise capital deployment.·      Office development in New York remains fundamentally attractive, but securing equity partners is challenging due to risk expectations and long completion timelines. ·      MetLife is experimenting with AI to enhance investment committee decision-making, enabling a sharpened focus on key risks and opportunities but not replacing human judgment.

Amid evolving trade dynamics, CBRE experts reveal how nearshoring, supply chain reinvention and revitalized twin-plant models are reshaping industrial markets on both sides of the U.S.-Mexico border. Notably, demand for logistics space and construction activity is booming along the I-35 Corridor.Key takeaways on U.S.-Mexico Border Markets: ·      Port Laredo Surpasses Traditional Gateways: Currently the top U.S. import hub by value, Laredo’s rise reflects a structural shift in trade flows. Demand for modern logistics facilities near the U.S.’s southern border continues to grow. ·      Kansas City Leads for Absorption and Connectivity: With 28% leasing growth and strategically situated along I-35 with access to a newly unified Canada–Mexico rail system, Kansas City is emerging as a central node for North–South supply chains—ideal for occupiers seeking scalable inland distribution. ·      14M+ SF Under Construction in El Paso and Laredo.  These border markets are seeing major development of automation-ready cold storage and FTZ-enabled facilities. This signals long-term confidence and presents opportunities for early investment in next-gen industrial assets. ·      Twin-Plant Models Resurge: The return of dual facilities operating on both sides of the border is fueling demand for more sophisticated manufacturing and distribution space t. Occupiers should evaluate cross-border strategies to optimize labor and logistics. ·      Keen Competition to Secure Labor Cost Advantages: Border markets offer up to 70% labor cost savings vs. most U.S. cities, and have a skilled workforce. However, occupiers must act strategically to secure talent in a highly competitive market.

CBL Properties’ Stephen Lebovitz and CBRE’s Rich Frolik explain how malls are being transformed into high-performing, mixed-use assets. From casinos and hotels to pickleball and movie theaters, malls are evolving to meet modern demand.Key takeaways on the evolution of malls: ·      Malls are transitioning into multi-use destinations, integrating entertainment, hospitality and residential to diversify income and increase relevance.·      Financing is increasingly accessible for retail assets, with recent deals showing lender confidence and competitive debt structures.·      Success depends on hyper-local strategies, with redevelopment tailored to demographics, infrastructure and competitive dynamics.·      Malls in secondary markets benefit from large trade areas and limited alternatives, reinforcing their role as dominant regional retail hubs.·      Redeveloping legacy anchor spaces into formats that appeal to current customer wants and tastes can unlocks value and enhance long-term viability.

Net lease assets are attracting more institutional capital. New Mountain Capital’s Teddy Kaplan and CBRE’s Will Pike explore why this resilient, tax-efficient investment strategy is gaining favor.Attractive in volatile markets: Positioned as a hybrid asset class—part real estate and part structured finance, net lease investments offer cash flow backed by quality credit tenants.Manufacturing momentum: Production facilities are emerging as high-performing assets due to their strong cash flow and tenant investment in infrastructure.Sale-leasebacks as strategic tools: Investors and corporate occupiers are increasingly using sale-leasebacks to unlock capital, especially in sectors where considerable capital is tied up in operating assets.·      Capital market resilience: Despite macroeconomic headwinds, net lease is attracting institutional capital, with growing interest from large institutions and wealth management channels.·      Risk-adjusted returns and geographic nuance: Cap rates and valuations vary significantly by location and tenant credit quality, underscoring the importance of underwriting both real estate fundamentals and corporate financial health.