All articles tagged with #cbre
CBRE has announced the creation of a new Building Experience Lab led by Annie Dean, aimed at rethinking and improving workplace environments through data-driven research and innovative design, in response to changing employee expectations and the return to office work.
Surveys by CBRE and JLL show that Manhattan's office market, particularly in the top tier, is thriving with high demand and low availability, especially on market-driving Park Avenue. Major tenants like PJT Partners and DoorDash have expanded their office spaces, indicating growth and expansion among larger occupants in 2023. The reports highlight the resilience and strength of the Manhattan office market, with significant lease signings and increased demand for premium office spaces.
CBRE Group, the world's largest commercial property brokerage, reported a 56% drop in profit for the third quarter as the sluggish real estate market and economic uncertainty continue to impact property markets. The company plans to cut costs by $150 million, primarily focused on its transaction-focused business lines. CBRE expects a recovery in the capital markets to be delayed until the second half of 2024 due to high interest rates and ongoing economic uncertainty. Despite the challenges, CBRE remains committed to seeking merger and acquisition opportunities and has earmarked funds for capitalizing on the current environment. The company also announced a partnership with the investment banking team from Sera Global to enhance its global investment banking capabilities.
Boston-based Berkshire Residential Investments has put its 292-unit Eight O Five apartment tower in Chicago's River North neighbourhood up for sale, hiring CBRE to market the property. The 32-storey high-rise was bought for $112.5m in 2016, but the current state of the downtown multifamily investment market means it is unlikely to fetch anything close to that price. Despite occupancies and rents remaining high, rising interest rates, investor caution and a lack of enthusiasm for Chicago have depressed values of big downtown apartment buildings over the past year or so.
CBRE's chief global economist Richard Barkham predicts a mild recession in 2023, but long-term factors like an "economic revival" in 2024 will benefit commercial and residential real estate. However, real estate values will decrease during the recession, with office values potentially falling by more than a third. Multifamily housing is oversupplied, which could freeze rent increases in certain markets. Despite this, values should rebound "relatively quickly" compared to other slumps, with industrial taking two years, multifamily three years, and retail four years. Offices could take nine years to recover their values.