Carolwood LP’s Post

Check out our Carolwood Investment memo discussing our office thesis. (Link in the article)

We expect institutional investor allocations to offices to continue drifting lower as they dispose of poor-quality offices and increase allocations to other property types. But this doesn't rule out more focused investment in the portions of a polarised office market that could be more likely to deliver returns. Bill Page advocates taking a nuanced approach

Bisnow wrote an article discussing the reasons investors are bearish on Chicago’s office market. Occupancy rates are sagging, companies are downsizing their footprints, and a potential new transfer tax could impact the prospects of virtually every city office property. The article includes valuable insights from Paul Cleary about how he is guiding investors, what he's seeing on the institutional investment side, and more. Check out the full article by visiting: https://lnkd.in/gg3xciaJ

Forget the down office market. This article points out more appealing investment sectors of commercial real estate with rewarding returns. Perfect for advisors and individual investors.

News from Members! The office market remains fluid and flexible. Two distinct trends have emerged in 2023: securing entry into prime new locations and optimizing the portfolio through best value negotiations, all driven by a market with limited deliveries. After the first 3 months of this year, the office sector in Bucharest shows a positive fluctuation in terms of total leasing activity, being 71% higher than the same period last year. Against the backdrop of a fluctuating economy and the continuing uncertain state of building permits in Bucharest, companies continue to rely on a cautious strategy to ensure that in the next real estate cycle they will benefit from the best terms and conditions negotiated for office space. Two thirds of the transactions concluded in the first part of 2024 are renegotiations/renewals, a trend that started in 2022 and is still taking effect.   A compelling example of this is the renegotiation transaction of more than 29,000 sqm carried out by Genpact in Hermes Business Center under the advice of CBRE, which holds at the end of this first quarter a market share of 34% in Bucharest and 29% in Romania, being the leader in the office sector. "We're in a time of opportunity for companies that choose to work with professionals who can make them stand out. There is momentum across all types of premises and across all types of tenants. If we look at the top 5 rental transactions of this first quarter, we see both records of the last few years and spaces of just over 4,000 sqm." explained Alina Calciu, Head of A&T Services Office Occupiers at CBRE Romania and holder of the largest renegotiation deal in the last 10 years. For more information, please visit http://www.cbre.ro

Office investments are dead, right? Not if you know where to look. We just closed a deal that delivered a 1.9x return on invested capital to our investors. In just 22 months of ownership. Let that sink in for a moment… Here's how we did it: → Identified an institutional-quality asset in Springfield, MO → Purchased well below replacement cost → Maximized value through strategic operational management → Attracted a quality buyer (CoxHealth) with unique needs The result? A 45% IRR. But here's the kicker - this was an office property. Yes, the same asset class everyone's running from. While others flee based on headlines, we dig deeper. We examine each property on its own merits. This approach has paid off time and time again. In fact, we believe now is the best time to go against the grain. The market's fear is creating unprecedented opportunities. At Sentinel, we don't follow the herd. We unearth value others overlook. And in today's office market, there's plenty of hidden gems for those willing to look. — How are you approaching office investments in the current market? Are you seeing opportunities others might be missing?

We all know that the Office sector has been hit hard since COVID. However, if the area has a past record of recovery private investors are showing a keen interest in buying up those offices. Not only do they have a strong chance for recovery, but currently investors can purchase certain office buildings at a large discount to what they were previously sold for; making them a prime choice for the distressed office acquisition strategy. . #officeacquisition #privateinvestors https://lnkd.in/gP--QNeg

An overview of the 2023 #office market in Minneapolis indicates a change in investment patterns, with entities possessing national and global reach responsible for over half of total office transactions, whereas less than a quarter of the properties were acquired. https://lnkd.in/ePayrhVY #AVANTbyAY #AYdifference

Curious about what is happening in the Tucson Office Market? Rick Kleiner recently wrote an article for The Trend Report covering how our market has been impacted by the advance of hybrid work and current economic headwinds. However, Rick sees both challenges as well as opportunities for owners, tenants, investors, and brokers. To read the full article, visit: https://lnkd.in/gJz4N85p #CRE #Tucson #Office #TheTrendReport

Here is an interesting article about the office market recovery, including an update about Brisbane... #CostelloGroup #CommercialProperty #OfficeRecovery