Welcome back to Sustainability Street, our podcast on the intersection of commercial real estate and the world we live in. Last month, I chatted with Elizabeth Beardsley, senior policy counsel for the U.S. Green Building Council, about the state of climate action in the U.S. and globally. Despite concerns that our new president would be less eco-friendly than President Biden, Beardsley said there was optimism that sustainable progress in the U.S. and abroad would continue. Three weeks into Trump administration, that optimism has been rattled. On his day in office, President Trump rescinded Biden-era executive orders that sought to put climate action and environmental justice front and center, he shifted the country away from renewable energy and he froze Congressionally-approved funds from the Inflation Reduction Act and Bipartisan Infrastructure Act. He has also taken aim at environmental regulation. For this episode, I discuss the effects of the president's early actions with Ben Evans, Federal legislative director for the U.S. Green Building Council—what they mean for commercial real estate, the nation and the world.…

Sometimes the most accomplished investors and developers thrive while keeping a relatively low public profile. That’s clearly true of The Fallon Company. For nearly 20 years, the Boston-based firm has been the driving force behind Fan Pier, the three million-square-foot development on Boston Harbor that ranks among the most significant urban placemaking initiatives of the past couple of decades. Hello and welcome back to Investment Matters. My guest for this episode is Michael Fallon, the firm’s CEO and the successor to Joe Fallon, the company’s founder and Mike’s dad. In this conversation, you’ll also hear about the pivotal experience Mike gained from working in another industry, the new markets that he views as promising, and the company initiative that opens doors for young people to real estate careers. Take a listen. Episode highlights: Origin story of a Boston landmark (2:56) The life science lease that became a turning point (7:20) Boosting resilience with a U.S. first (10:45) Where The Fallon Co. sees the next big opportunities (15:39) Growing a footprint in the South (20:54) Early influences: getting the flavor of the business (24:49) Takeaways from construction industry experience (28:38) Tips for aspiring professionals (31:22) An innovative, “wildly impactful” program for young people (34:29) How to revitalize U.S. downtowns (39:41) Mike Fallon off the clock (44:53)…

Globally, sentiment toward real estate in 2024 was a bit of a mixed bag. The first three quarters saw steady improvement, but then sentiment softened in the last three months of the year, mainly due to the rise in bond yields. “But even so, it is worth noting that investor inquiries did rise slightly in several markets, which could be taken as a more positive sign,” said Senior Economist Tarrant Parsons of the Royal Institution of Chartered Surveyors in the latest RICS Monitor podcast episode hosted by Commercial Property Exeuctive Senior Editor Laura Calugar. Tune in for more insights!…

Welcome back to Sustainability Street, our podcast on the intersection of commercial real estate and the world we live in. Happy New Year! On the verge of a new year and a new Federal administration, I interviewed Elizabeth Beardsley, senior policy counsel, for the U.S. Green Building Council, about the state of climate action in the United States and globally. Beardsley had just returned from COP 29, the annual United Nations climate conference, and she generously shared what she heard and saw at the event, where more than 200 countries were represented. The COP is a pretty important meeting. It was at COP 15 in 2016 that the Paris Agreement was formed, and each year the "Conference of the Parties" meets to track progress on limiting global warming and to establish new agreements and targets. According to Beardsley, "the U.S. was there with the message that we've gone way beyond the commitments and promises phase. We're doing this and there's a lot of momentum. So, the intent from all parties is really to keep that momentum up." Here are some of the topics Beardsley and I covered: COP explained (1:32) Moderate optimism and a bigger finance commitment (2:56) At last, rules for carbon credit trading (5:03) Building-specific initiatives (7:10) U.S. sustainability post-Biden (9:52) The regulatory outlook (13:38) AI as solution and stressor (16:50) Beardsley's own near-term outlook (17:50)…

Over the past couple of years, landlords and companies have been reevaluating their office space needs. Many have resized their portfolios and adapted to the need for more flexibility in office settings. Although return-to-office strategies are widely reinforced, there’s still a gap between actual attendance and these policies. While some regions and industries register higher office return rates, CBRE’s Head of Occupier Research Julie Whelan noted a 25 percent decrease in average lease sizes and a 9 percent reduction in space per worker across the country. Despite these changes, leasing activity and space utilization have plateaued, leading to a higher possibility of market stabilization in 2025. In this episode of CPE’s Step Into My Office podcast series, Whelan joins Associate Editor Olivia Bunescu to discuss the future of the office market and the factors that will influence hit performance in the upcoming year. She also highlights the importance of adopting flexibility across your portfolio and some barriers and trends shaping the future of work and the traditional office as we know it today. Here are the main topics they discussed: The hybrid work revolution: where are we now? (1:55) Regional and industry differences driving office utilization (04:09) Bridging the gap between attendance policies and actual practice (08:33) Strategies for integrating flex solutions into traditional office settings (11:10) Lack of experience remains a barrier to the wider adoption of flex office models (15:08) Defining success in office and flex office portfolios (20:09) Where technology comes into play (24:50) Other trends shaping the sectors (27:39) Will the office market stabilize in 2025? (30:06)…

The Super Bowl of Tax or Taxmageddon—just a couple of the labels that experts have put on 2025 when referring to imminent tax policy changes. With a new administration in the White House, commercial real estate owners, developers and asset managers need to be ready for what’s next. Leland Collins, senior director in FTI Consulting’s Real Estate Tax Advisory Group, and Asha Shettigar, managing director in the same department, talk to Commercial Property Executive Senior Editor Laura Calugar about upcoming changes in the tax regime.…

Welcome back to Sustainability Street, our podcast on the intersection of commercial real estate and the world we live in. Therese Fitzgerald's guest for this episode is Ethan Elser, executive vice president of PACE Equity LLC. The Commercial Property Assessed Energy Program, otherwise known as C-PACE, was launched 15 years ago to provide property owners with low-cost, long-term financing for sustainability and efficiency improvements, with borrowers repaying their loans through a special tax assessment. But the program was still pretty niche until the pullback in capital—first during COVID-19 and then when interest rates spiked—sent borrowers looking for creative financing solutions. Today, C-PACE can be found in an increasing number of borrowers' capital stacks and the project sizes are getting larger. Meanwhile, on the investor side, the ESG-driven program has caught the attention of some of biggest names in real estate like Nuveen, CDPQ and Carlyle. As the capital markets loosen, can C-PACE's streak continue? Elser thinks it can. "There's actually 40 cities around the country—most major metropolitan areas," he said, "who all have higher standards and then fines if you're not complying with certain emissions criteria. And so, we're seeing more interest in C-PACE being a solution for that. I think that'll be a bigger part of the marketplace going forward." Here are some of the topics Elser and I covered: • Esler's journey to sustainable finance (2:03) • C-PACE explained (4:17) • Simultaneous objectives (10:08) • 38 separate C-PACE programs (13:11) • Busting myths about C-PACE (15:54) • The future of C-PACE (22:22)…

Most commercial real estate companies are currently getting positioned to take a greater leap into generative artificial intelligence. CREW Network CEO Wendy Mann expects to see more extensions into AI over the next 24 months. A recent study conducted by the organization showed that as of right now there’s still a very low level of actual usage of AI in day-to-day business. Additionally, as Mann puts it, generative AI is only as neutral as the information it canvasses, so the technology is far from being unbiased, as one would think. Press play for the last episode of CPE's CREW Up series this year, hosted by Senior Editor Laura Calugar!…

Welcome back to Sustainability Street, our podcast on the intersection of commercial real estate and the world we live in. For this episode, my guests—Sairah Burki, managing director & head of Regulatory Affairs & Sustainability at the Commercial Real Estate Finance Council, and David McCarthy, CREFC managing director & head of Legislative Affairs—delve into the legislative logjam around the National Flood Insurance Program, which, though basically insolvent, is the only flood insurance alternative for many. They also discuss the need for long-term authorization, and innovative strategies around flood coverage. “The policymakers have to decide who is going to pay for this,” McCarthy said. "Is it going to be the Federal government? " Here are some highlights from our conversation: A worsening problem (1:30) The rising cost of coverage (7:17) What it means for owners and lenders (8:37) A bi-partisan concern (12:58) The industry lobbies for clarity and resilience (15:22) What a new administration means for sustainability (23:27) Follow, rate and review CPE’s podcasts on ⁠Spotify⁠ and ⁠Apple Podcasts⁠ !…

The global real estate market is in the early stages of recovery, according to the latest survey by the Royal Institution of Chartered Surveyors in London. In fact, the indicators tracking lending conditions posted the most positive reading since 2015, but this doesn’t mean there aren’t any elements that could derail global business activity. “We need to avoid seeing a re-escalation in inflationary pressures to allow a continued easing in monetary policies to support the market,” Senior Economist Tarrant Parsons told Commercial Property Executive Senior Editor Laura Calugar in this podcast episode. Tune in now!…

Change is in the air this fall for commercial real estate investment. The Fed’s announcement of a 50-basis-point interest rate cut in late September, and the expectation that more cuts are ahead, signals a reopening of the spigot for real estate finance. But there’s plenty more in the mix these days. In this conversation, CPE Executive Editor Therese Fitzgerald gives us a snapshot of what’s around the corner for investment, explores trends in CMBS and debt funds, and brings key takeaways from CREFC’s recent conference in New York City. Episode highlights: · The impact of interest rate cuts (1:23) · What’s ahead for the rest of 2024 (2:40) · Market momentum: will investors wait? (3:40) · The “wall of maturities” and other CREFC conference takeaways (5:20) · CMBS snapshot (6:56) · Why capital is flowing to debt funds (8:49) · What’s next for bank lending? · Some good news for borrowers (11:11) · Signs of an office sector reset (12:27)…

Welcome back to Sustainability Street, our podcast on the intersection of commercial real estate and the world we live in. For this episode, I'm tackling carbon credits with my guest Mahesh Ramanujam, CEO of Global Network for Zero and formerly the president & CEO of USGBC. For Ramanujam, carbon credits are a necessary bridge to achieving net zero in commercial real estate and the world. Not everyone shares that view, so we talk about why carbon credits have a public relations problem and the need for greater transparency and verification. “Our work is to really make the invisible visible so that the visible becomes actionable so that the actionable things then could be scalable.” Ramanujam said. Here are some highlights from our conversation: Carbon credits defined (2:26) Carbon credits under the microscope (5:33) SBTi's mixed message on credits (8:20 Offsetting vs. insetting (16:31) Achieving high-quality credits (20:52) Growing the supply of carbon credits (24:08)…

With property valuations at historic lows, buying office or retail space instead of leasing it might make a lot of sense today. But there are lots of caveats to it. Shifting from owner to occupier has many implications and requires a different skillset than managing a portfolio of leased real estate. However, a long-term commitment to a specific location—probably a company headquarter or a flagship store—is a good enough reason for a tenant to purchase the space. Nevertheless, there are risks and concerns. Hear all about them in this FTI Experts’ Hub episode with Jahn Brodwin, senior managing director & co-leader of the Real Estate Solutions practice at FTI Consulting, and Rob Raymond, who serves as managing director in the Real Estate Advisory group within the Real Estate Solutions practice.…

As the president of Colliers International’s Real Estate Management Services division, Karen Whitt leads a team of almost 2,000 people. Recently, she noticed that talent availability is loosening up at both the executive and the entry level, but finding qualified, experienced candidates is still a challenge. So retaining current employees is critical, and creative, empathetic leaders that understand the power of investing in training can go a long way. Whitt serves as the 2024 President of CREW Network. In this CREW Up podcast episode, she talks to Commercial Property Executive Senior Editor Laura Calugar about the current hiring market.…

The demand for traditional office environments is shifting, leading to significant impacts on vacancy rates, lease structures and development activity. As companies are looking for ways to right-size their portfolios and office spaces, the market's current outlook is showing some improvement. Office attendance is now closer to ⁠pre-pandemic levels⁠ , and some companies have found the right formula for increasing leasing rates. In the first episode of Step Into My Office, CPE’s new quarterly podcast series, Associate Editor Olivia Bunescu delves into the current office market trends across New York with Nick Berger, director of commercial leasing at The Moinian Group. Berger shares some of the company’s leasing strategies as it adapts to changing tenants’ needs and ⁠hybrid work models⁠ . Here’s what he discussed about: Major trends across NYC’s office landscape (01:04) Financial and legal services are leading the office market (02:05) “The office market is a bit better than the start of the pandemic, but it’s not quite where we want it to be.” (03:13) How have office lease terms changed across the office market? (04:34) Accommodating tenants’ expectations as part of leasing strategies (05:50) Competition for tenancy is an ongoing challenge in the office sector (07:23) Approaching leasing from a customer-centric standpoint (09:17) NYC’s scene is set up for improvement, but there’s a long way to go (11:35) How proximity to major transportation hubs and quality attracts tenants (12:55) The Moinian Group’s formula for portfolio growth and leasing success (14:38) Keeping a closer look at the Grand Central area (17:24) Embracing conversions as an expansion strategy (19:30) The inspiration behind The Moinian’s Mile (20:44) What’s next for NYC’s office scene? (22:52)…