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.

Key takeaways on data center trends:

·     Data center site selection is increasingly dictated by access to scalable power, increasing  development in markets with robust energy infrastructure.

·     AI-driven demand is accelerating the need for hyperscale campuses, with some sites spanning thousands of acres and requiring gigawatt-level capacity.

·     Lease structures are based on power usage rather than square footage, with rental rates rebounding over 50% since 2021 due to limited availability.

·     Long-term capital is flowing into the sector, with infrastructure funds driving a shift in investment strategies.

·     Labor and construction cost pressures are prompting innovations like prefabrication to meet the demands of billion-dollar builds.

Real estate titan Stephen M. Ross shares his bold vision for commercial real estate and West Palm Beach. Ross sees the rising Florida market as a hub for innovation, business activity and entertainment, highlighting strategic investments in healthcare, education and cultural amenities, Ross looks back on an incredible career as a developer and entrepreneur.

Key Takeaways:

·     West Palm Beach Is Emerging as a Strategic Business Hub: With major investments in infrastructure, education and healthcare, the city is evolving from a back-office market into a front-line destination for corporate headquarters and innovation.

·     Walkability and Waterfront Access Are Driving Tenant Appeal: The city's urban design, combined with its coastal location, offers a lifestyle advantage that's increasingly important for attracting and retaining top talent.

·     Class A Office Space Is Thriving Despite National Trends: Premium developments in West Palm Beach are commanding Florida's highest office rents, signaling strong demand from financial and tech firms seeking quality and location.

·     Inclusive Growth Is Key to Long-Term Value: Investments in workforce housing, K–12 education and cultural amenities are creating a well-rounded ecosystem that supports both occupiers and employees.

·     Palm Beach County Is Competing with Top Growth Markets: With its favorable business climate, lifestyle advantages and expanding infrastructure, the region is positioning itself alongside cities like Austin, Nashville and Dallas as a top choice for corporate expansion.

Key Takeaways on the Real Estate Outlook

·     CBRE foresees U.S. commercial real estate investment activity increasing by 10% in 2025, despite macroeconomic uncertainty.

·     CBRE believes the office market is passed its trough and leasing activity should continue to rebound.

·     Industrial & logistics leasing activity will likely be on par with last year. Occupiers want modern facilities that are close to consumers.

·     Availability of retail space will remain relatively tight due to limited new construction over the past decade. Retailers prefer space in high-traffic, open-air centers in growing markets.

·     Rents have generally bottomed out in the multifamily market. The Midwest and Pacific Northwest are poised to lead national rent growth.

·     Data Centers and the credit markets represent opportunities for nimble investors.

Entrepreneurs Sam Fox and Brian Frakes offer insights on their hospitality-driven approach to real estate development in Phoenix and how curating experiences and operating assets themselves are driving value.

Key Takeaways:

·     Hospitality-led development is reshaping urban real estate, with restaurants and hotels serving as anchors that drive traffic, elevate brand identity and boost asset value.

·     Phoenix is emerging as a high-growth, diversified market, supported by strong demographics, pro-business policies and expanding sectors like semiconductors and healthcare.

·     Controlling the operations of hospitality assets enhances consistency and guest experiences, creating a competitive edge and long-term brand loyalty.

·     Investment strategies are evolving, with developers leveraging a mix of institutional equity, local partnerships and vertically integrated operations to deliver complex, high-value projects.

·     Experience is the new differentiator in retail and hospitality, as consumers increasingly prioritize service, ambiance and authenticity over convenience.

In the fourth episode of our European tour, HB Reavis' Steve Skinner and CBRE’s Alastair Perks and Simon Brown explore how asset renewal, sustainability priorities and operational excellence are transforming real estate development across Europe.

Recorded in London, this discussion with Raimondo Amabile, Co-CEO  of PGIM Real Estate, focuses on RealAssetX—the company's innovation lab that's leveraging AI to improve building operations and asset performance.

Key Takeaways:

 · PGIM Real Estate’s RealAssetX lab is focused on transforming real estate investing through AI, sustainability and operational efficiency, signaling a shift from traditional asset management to tech-enabled value creation.

· Investors are reallocating capital to Europe and Asia, reflecting a broader trend toward geographic diversification and shifting regional macroeconomic confidence.

· Applications of AI in building systems, such as HVAC optimization, are delivering significant energy savings, demonstrating the potential for improved net operating income (NOI) and sustainability.

· New AI tools are being developed to estimate embodied carbon at scale, positioning sustainability as a core factor in asset valuation and investment strategy.

· Rental housing, logistics, data infrastructure and real estate credit are key areas of investor focus, while office assets require a highly selective, value-add approach.

AEW's Chief Investment Officer and Head of Private Equity and Private Debt in North America, Mike Byrne and CBRE's Vice Chairman and Co-Head of US Large Loans in Debt & Structured Finance, Tom Traynor provide insights on how real estate investors today can mitigate risk and uncover opportunities by strategically deploying capital across diverse asset classes and regions.

insights on deploying global capital:

·     Today's market demands flexible investment strategies that can adapt quickly to geopolitical shifts, interest rate changes and capital market volatility.

·     High-quality office assets in prime locations are piquing investor interest, offering potential upside while demand for class B/C assets remains muted.

·     Debt capital availability is improving, with both traditional capital sources and alternative lenders actively competing to finance deals.

·     Investors are increasingly targeting high-growth submarkets, prioritizing local demand drivers over broad asset class preferences.

·     Technology and AI are influencing investment decisions, with growing potential to enhance underwriting and portfolio strategy.

In this second installment of our series on Europe, Schroders Capital’s Nick Montgomery and CBRE’s Lee Bruce share insights on AI-driven strategies, sustainability and asset repricing.

From This Episode: Recent insights on the U.K. investment market:

• U.K. investment volume has picked up since late last year, buoyed by international capital.

• AI and data tools are streamlining everything from valuations to investment analysis, enabling faster, more informed decisions while freeing up time for high-value activities.

• The office sector continues to bifurcate, with top-tier, amenity-rich spaces commanding strong rents while the lowest-grade assets face obsolescence or conversion.

• Sustainability is a key performance driver, with occupiers and investors increasingly rewarding green buildings and penalizing outdated, inefficient assets.

• Despite global uncertainty, international capital, particularly from Asia and Australia, is returning to the U.K., signaling renewed confidence in its real estate fundamentals.

Recorded during a CBRE event in Barcelona, Panattoni’s Robert Dobrzycki and CBRE’s Jack Cox explore the European logistics market with a focus on opportunities in today’s market.

1. Growth in Europe’s Industrial & Logistics sector is expected to driven by demand from 3PLs, e-commerce and manufacturing.
2. Operational expertise is crucial in Industrial & Logistics, particularly in denser urban environments.
3. Data centers is a growing niche, with high investment potential.
4. The European logistics market is more fragmented than in the US. There's also less development and labor costs play a bigger role in the investment equation.
5. Geopolitics, evolving trade policies and technology advancements all have an influence on the European logistics market.

·     With sub-3% vacancy and strong rent growth, Industrial Outdoor Storage (IOS) is outperforming traditional industrial assets.

·     Zoning and entitlement hurdles limit new IOS development, boosting demand for existing sites.

·     Major investors are amassing IOS portfolios, following the path of self-storage and single-family rental.

·     IOS supports logistics, construction and utilities with strategic infill locations and flexible outdoor space.

·     Electrification and evolving logistics technology are reshaping IOS.

Macquarie Group’s Andrew Burdick pulls the curtain back on the company’s newly reimagined Americas headquarters in Midtown Manhattan. Burdick and CBRE’s Lenny Beaudoin discuss how design, flexibility and sustainability can converge to create spaces that foster innovation, support company culture and drive long-term value.

·     Workplace design can reflect and reinforce your organization’s mission and culture. When space aligns with purpose, it becomes a tool for engagement, innovation and long-term employee satisfaction.

·     Design an office to support various ways of working like collaboration, focus and events. This maximizes space efficiency while supporting evolving work patterns.

·     Open staircases and shared social zones drive spontaneous interaction, collaboration, creativity and a sense of community.

·     A great workplace integrates technology seamlessly from smart systems to digital collaboration tools, creating a cohesive experience for in-person and remote colleagues.

·     Measure engagement and satisfaction and make them the barometer of success.

CEO John Santora discusses WeWork’s revival, and its focus on real estate fundamentals, disciplined growth and delivering flexible, hospitality-driven office solutions worldwide.

·     WeWork has repositioned itself as a real estate-first company focusing on strategic locations, hospitality services and profitability.

·     Demand for flexible office space is accelerating, with enterprise clients requiring scalable, adaptable solutions.

·     Tech, finance and pharma are setting the pace for demand. 

·     WeWork has begun training its staff using Ritz-Carlton’s hospitality standards.

·     Today, WeWork utilizes revenue-sharing, management agreements and traditional lease models.

Two international experts—Pro-invest Group’s Sabine Schaffer and CBRE’s Stuart McCann—unpack the fundamentals and investment appeal behind co-living.

Share these insights on co-living, which is attracting residents and capital, particularly in overseas markets:

• Co-living fills a market gap between hotels and multifamily, and is distinguished by resident tenure, product mix and community social environment.

·     Co-living offers flexible, furnished units with strong appeal to working professionals and students.

·     Co-living assets can be an attractive investment, delivering stable income and occupancy as high as 95%+.

·     Conversions of offices and hotels can often be delivered more quickly and at lower costs than ground-up co-living development and produce better risk-adjusted returns.

·     Private equity is flowing into co-living and more institutional core capital may target the sector as it matures.

·     Urban affordability and demographic shifts are driving long-term demand, positioning co-living as a scalable residential solution.

With a twist on the conventional lodging business model, Extended Stay America (ESA) has seen impressive growth in recent years. ESA CEO Greg Juceam discusses managing its real estate portfolio and provides insights on the business of long-term accommodations.

Share these insights from this week’s episode:

1. Investment Potential: The extended-stay lodging segment offers a resilient and growing opportunity, particularly in secondary and tertiary markets.
2. Operational Simplicity: Extended-stay hotels can benefit from streamlined operations and less labor requirements.
3. Scalability: ESA’s model combines ownership and franchising, enabling multiple avenues for growth and scalability.
4. Diversified Demand: The diverse range of guest demand drivers -- from construction crews to long-term healthcare treatments to digital nomads -- tends to support stable occupancy rates.
5. Strategic Expansion: ESA’s focus on new builds and strategic acquisitions positions it well for future growth, even in challenging capital markets.

Fifth Wall’s Brendan Wallace and CBRE’s Connor Hall explore innovation in commercial real estate, from flexible workspaces to AI-driven investment strategies.

Share these insights on proptech investing:

·     Investing in PropTech, like all venture capital investments – is high risk and high reward. Investors typically underwrite 40%+ internal rates of return (IRRs), betting that a few transformative companies succeed and compensate for those that fail.

·     Investing in PropTech provides early access to innovations that enhance asset performance, reduce costs and create competitive differentiation.

·     Artificial intelligence is expected to improve underwriting, asset selection and risk modeling for real estate investors. Those that adopt AI-driven tools early may gain a significant edge.

·     The initial public offering (IPO) market has slowed, but standout exits like ServiceTitan show that public capital is still available for top-tier companies. Investors in private companies should be prepared for longer holding periods prior to exits.

·     The most investable PropTech companies are those that solve challenges for  real estate in operations, capital markets, risk management and elsewhere. Deep industry knowledge is key to identifying winners.

Leading construction and finance experts gathered at Turner & Townsend’s New York office to discuss the impact of tariffs, interest rates, new technology, labor availability and more on commercial construction.

1.    Uncertainty: The construction industry faces significant uncertainty due to volatile interest rates, higher tariffs and costs for materials and labor.

2.    Contract Scrutiny: Detailed contract reviews, especially force majeure clauses, are crucial to manage risks.

3.    Risk Mitigation: Strategies such as early material procurement, storing materials and increased contingencies in contractor agreements are essential to safeguard projects.

4.    Labor Challenges: Rising costs and shrinking labor availability are critical factors affecting construction projects.

5.    Affordable Housing: Despite market volatility, affordable housing projects continue due to the critical need for them and creative financing solutions.

Robinson Weeks Partners’ David Welch and CBRE’s Chris Riley discuss market opportunities and challenges in the industrial real estate sector. Chris will be leaving CBRE to join Robinson Weeks in a senior position effective June 1.

Share these insights on industrial & logistics real estate:

1.     E-commerce helped the industrial sector grow, but a spate of development has created challenges.

2.    Large-scale redevelopment projects, such as transforming former military bases, can yield substantial returns but require flexible planning, environmental cleanup and, often, partnership with the public sector.

3.    Modern industrial buildings are designed with increased clear heights and advanced lighting to meet present and future occupier needs.

4.    Highway and transportation access, utilities availability and environmental regulations are some of the critical factors in industrial site selection.

5.    Staying informed about local regulations, zoning restrictions and community sentiments is vital for securing project entitlements.

In this bonus episode, CBRE's new Global Head of Research, Dr. Henry Chin, discusses the current outlook for commercial real estate for both occupiers and investors.

Key Takeaways on the Economic and Real Estate Outlook

·     Market Sentiment: Real estate fundamentals don’t change overnight. Leasing activity is proceeding across asset classes though some occupiers are delaying decisions until they have more clarity on potential policy changes and their economic impact.

·      Economic Indicators: Monitoring not only job growth and inflation but also softer indicators like travel bookings and restaurant reservations provides a feel of the real economy.

·      Nimble Capital: High-net-worth individuals can move quickly to pounce on attractively priced opportunities.

Galvanize Climate Solutions’ Joe Sumberg and CBRE Chief Sustainability Officer Rob Bernard share insights on achieving high returns through sustainable investment strategies.

·     Profitable Sustainability: Commercial real estate investment strategies that integrate today’s sustainability and decarbonization technologies can enhance returns.

·     Economic Opportunities: There is high occupier demand for green buildings, presenting investment opportunities.

·     Technological Integration is the key: Using energy-efficiency systems and AI can enhance the operating performance and value of real estate assets.

·     Strategic Market Focus: Regulatory frameworks and government incentives can increase the appeal of sustainable investment strategies in certain markets.

Each new generation brings opportunities and challenges to the workplace. Recorded live at ICSC Detroit, leaders from two Michigan-based real estate families, the Schostaks and the Friedmans, discuss the hard but necessary conversations and choices required to maintain a multi-generational enterprise.

Share these insights on succession planning in family-owned businesses:

·      Succession Planning: Establish clear governance and involve family members in decision-making to ensure smooth leadership transitions.

·      Leadership Transition: Transferring leadership to the next generation requires structured processes and clear roles.

·      Family and Business Balance: Balance family dynamics with business operations, making necessary sacrifices for success.

·      Adaptability: Evolve business models and diversify services to stay competitive.

·      Economic Resilience: Maintain liquidity and seize opportunities during economic downturns.