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The Rapid Change of Commercial Real Estate

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Bloomberg Television

Bloomberg Television

Күн бұрын

Robert Sulentic, CBRE CEO breaks downsigns of stress in commercial real estate and explains why office buildings occupancies are unlikely to return to pre-pandemic levels.
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Пікірлер: 109
@user-kw6im1bs1l34
@user-kw6im1bs1l34 5 ай бұрын
Real estate investors losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.
@user-bw5ws8fr9t12
@user-bw5ws8fr9t12 5 ай бұрын
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@user-yk7yf6ow8s09
@user-yk7yf6ow8s09 5 ай бұрын
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
@user-bw5ws8fr9t12
@user-bw5ws8fr9t12 5 ай бұрын
STEPHINE KOPP MEEKS is who i work with look her
@user-yk7yf6ow8s09
@user-yk7yf6ow8s09 5 ай бұрын
Thanks for recommending i find her and left her message online
@LumpsIsHigh
@LumpsIsHigh Жыл бұрын
CEO of commercial real estate company says commercial real estate is fine. Also, love the host saying "We have learned that commercial real estate is MORE than just office buildings." Damn, some serious journalism here guys.
@AH-fm7rj
@AH-fm7rj Жыл бұрын
😆
@farnio
@farnio Жыл бұрын
😂
@Stoneface_
@Stoneface_ Жыл бұрын
Some commercial real estate are actually doing fine. Data centers, warehouses, manufacturing etc aren't doing bad but offices are struggling
@spaceballs72
@spaceballs72 Жыл бұрын
Data centres kill office spaces. This is an amplifying affect. The more white collar jobs that invest in data centres the more they realise, we don't need to lease a big expensive office building, they can just work from home." And industrial spaces and warehousing are cyclical. If the economy tanks, less demand, less industrial output, less inventory, less need for industry. These two guys are just a shill for the establishment, trying to keep retail investors to stay in the cr market while they liquidate their positions.
@chrisE815
@chrisE815 Жыл бұрын
Still better than a CNBC "interview"
@patrickbrussels4454
@patrickbrussels4454 Жыл бұрын
Despite the prevailing fear and predictions of an impending crash, there is already a significant amount of demand waiting to absorb it, which diminishes the likelihood of such an event occurring as anticipated. This forecast contrasts with the circumstances in 2008, especially regarding public perception, which I will elaborate on below. As mentioned in another comment, the homeownership rate reached its highest point in 2004. Currently, we have reached a peak in the second quarter of 2020 and are now at a more moderate level. Between 2008 and 2012, the homeownership rate declined by 3%, and in the second quarter of 2020, it dropped from 68% to 65%.
@jessicasquire
@jessicasquire Жыл бұрын
Due to their familiarity with bull markets, many individuals struggle to cope with market declines. However, if you know where to look and how to navigate effectively, you can potentially generate significant profits. The key lies in your strategy for entering and exiting the market.
@Lemariecooper
@Lemariecooper Жыл бұрын
As we find ourselves in unfamiliar territory with uncertain markets, it is understandable that widespread anxiety and excitement prevail, especially considering that the US stock market has been experiencing its longest bull run to date. However, there are still opportunities for those who know where to seek them. As you previously mentioned, it was not challenging for you to earn over $780k in the past 10 months. Recognizing the need for a reliable and robust plan to navigate these challenging times, you wisely engaged the services of a portfolio advisor.
@Erikkurilla01
@Erikkurilla01 Жыл бұрын
@@Lemariecooper Throughout the entire year, my portfolio has experienced significant declines, prompting me to embark on research for alternative strategies to generate profits in the market. However, every approach I attempted seemed to fall short of expectations. I kindly request that you share the name of your financial advisor with us.
@Lemariecooper
@Lemariecooper Жыл бұрын
@@Erikkurilla01 The financial operations were overseen by *STEPHANIE KOPP MEEKS* , whom I discovered and contacted after watching her interview on CNBC. Ever since, she has been instrumental in guiding my entry and exit points for the highlighted investment opportunities. If there is a need for tracking or further information, an online search can be conducted.
@Erikkurilla01
@Erikkurilla01 Жыл бұрын
@@Lemariecooper By simply copying and pasting *STEPHANIE's* full name into my browser, her website promptly appeared. Your suggestion has saved me countless hours of tedious research, and for that, I am truly grateful.
@AH-fm7rj
@AH-fm7rj Жыл бұрын
Dude, 90% of offices in the city centers were filled with engineers and marketing people. Kind of jobs that can be done much better remotely than in the office. No one wants to waste 2 hours per day in traffic or disease-ridden public transport to get to a job that they can do much more efficiently at home. Companies can also save tons of money by not leasing those super expensive city center offices.
@LapisGarter
@LapisGarter Жыл бұрын
It's not about saving money it's about control. They would rather expense real estate than let workers have more control over their working conditions.
@gregfawcett5152
@gregfawcett5152 Жыл бұрын
This guy has been smoking some really good shit.
@StarryNight007
@StarryNight007 11 ай бұрын
90% lol did you grab that number from the air?
@Dan-yf2df
@Dan-yf2df Жыл бұрын
CBRE is in the the commercial property business so this guy is in a serious conflict of interest. Remember that when you listen to him.
@AJ-iu6nw
@AJ-iu6nw Жыл бұрын
he's being honest and transparent. How dare you accuse him of conflicting interests.
@karlpopper601
@karlpopper601 Жыл бұрын
Thx
@Stoneface_
@Stoneface_ Жыл бұрын
True but some commercial real estate are actually doing fine. Data centers, warehouses, manufacturing etc aren't doing bad but offices are struggling
@trasewagner7582
@trasewagner7582 Жыл бұрын
He just talked about the overinflated headlines
@banditonehundred
@banditonehundred Жыл бұрын
Ok people move along, nothing to see here
@user-dw1uq3jq4w
@user-dw1uq3jq4w Жыл бұрын
The rise in rent prices and real estate prices in the United States of America is strange and has negative repercussions on the poor in this country 😢😢😢
@user-ob4em4ge6c
@user-ob4em4ge6c Жыл бұрын
Residential real estate has been declining for 6 straight months, NATIONALLY. Buckle up, this is going to be worse than 2008.
@Go-Getter
@Go-Getter Жыл бұрын
It's been 3 years since this has begun and these stubborn know it all CEO's thought they could force people back into the office. Nope, people quit and found jobs that allowed them to work from home. These corporations caused this on themselves. I also blame these timid developers who have the capabilities of repurposing these buildings but refuse to do so, but would rather knock down trees and start new construction.
@Go-Getter
@Go-Getter 11 ай бұрын
@liberalculler5087 I love these comments. Being that my wife and I both directly have businesses that target the commercial real estate space, I more than likely have a better understanding of all things commercial real estate in comparison to you. I closed on two 20,000 sf buildings in the past 3 weeks but I'm sure you're about to tell me what I should do to maximize my earning potential being that I don't know how development and financing works. You guys get online and just blow smoke. Offering opinions that are worthless just to attempt to appear that you know more than you actually do and appear to be greater than you actually are.
@moneylust
@moneylust Жыл бұрын
mr. sulentic, you are absolutely right on what you are barking about. thus, you and all of your family members & relatives & friemds must invest all of their money on commercial real estates. in fact, you are so right about what you are barking about thus all of them must take loan to invest on commercial real estates before miss this great opportunity.
@Johndoe10007
@Johndoe10007 Жыл бұрын
Yes invest there own money not just charge fees for transactions of other peoples money when selling and buying
@994pt4
@994pt4 Жыл бұрын
"only 1.5% of bank assets are in office building loans" that's all I had to hear
@RandalColling
@RandalColling Жыл бұрын
I want to buy some warehouse space here in Dallas but the prices are double new construction costs. On commercial income property they want to sell at a 4.5% yield when your borrowing costs are 7.5%. You have -3% return day one. The rent income doesnt come close to covering the interest. Zero deals at all. Anything with a slightly higher yield is old, obsolete and full of asbestos.
@RandalColling
@RandalColling 11 ай бұрын
@liberalculler5087If your doing all or mostly cash, why bother to deal with the aggravation? Wouldnt it be easier to just buy stocks or fixed income??
@RandalColling
@RandalColling 11 ай бұрын
@liberalculler5087 Oh really? Ive been doing this for 40 years....Ive owned hospitality, apartments, retail, office and industrial. Ive invested in 3 different countries and 4 states. I Had a brokers lisc in CA and TX. I did a ground up development of 100,000ft project and currently own 190,000ft of commercial space..... your turn...
@RandalColling
@RandalColling 11 ай бұрын
@liberalculler5087 I dont want you to feel bad.... but those get rich quick seminars and books really arent the best way to make it.
@naderamjadi8902
@naderamjadi8902 Жыл бұрын
Wow, this guy is really nervous. Bad sign
@Johndoe10007
@Johndoe10007 Жыл бұрын
Even though Robert is the boss of one of the biggest commercial real estate offices in the world he’s doing what all realtors do …. He’s is as always very optimistic about all things real estate. When USA 🇺🇸 GOVERNMENT BACKED TREASURY BILLS were 0 or 1 percent it made sense to take a risk on blue chip real estate that returned 5 percent even though its a lot of work and risk … treasury bills are almost now 6 % so office buildings which are now a massive risk because of no one needs a lot of them should have a return yield / cap rate of 10% with a lower rent ….Robert count it up and yes every building is different but that 60 to 70 percent reduction in value
@moeramz
@moeramz Жыл бұрын
You are right that's what I keep saying but people keep buying even though the cap rates make no sense... T bills and banks paying 5% risk free yet people trying to sell there buildings at a 5% cap makes no Sense to take the risk... And if you need a commercial loan your rate is 10%+ so it makes no sense to finance it either...
@alicepdimarzio7735
@alicepdimarzio7735 9 ай бұрын
Office Building loans are primarily CMBS loans, not Bank loans held on their own books.
@c00per69
@c00per69 Жыл бұрын
Robert obviously is a insider promoter and this video will not age well.
@josecastillo-ne4ue
@josecastillo-ne4ue 2 ай бұрын
It sounds like they are trying to talk thier way out of a problem… “our portions haven’t changed” “we just need to get people excited about our commercial real estate”
@parthy5386
@parthy5386 10 ай бұрын
Kastle represents only 2% of office buildings.. metro usage statistics and new sublease additions are better statistics
@relax-ie3mp
@relax-ie3mp Жыл бұрын
Thank you Africa for your good efforts.
@gosikh
@gosikh Жыл бұрын
You know that commercial office buildings will never ever be the same
@reblie_maps
@reblie_maps 11 ай бұрын
The increase in rent and real estate prices can be a real challenge, especially for the economically disadvantaged. Real estate software can play a role in improving affordability by streamlining property management, enabling better data analysis for informed decision-making, and potentially identifying opportunities for more affordable housing solutions. While it's not a silver bullet, it's a step towards addressing these issues and making the real estate market more accessible to everyone.
@parthy5386
@parthy5386 10 ай бұрын
States can relax rules to covert office to hotels or apartments
@jackjanpour8532
@jackjanpour8532 Жыл бұрын
Commercial Real Estate can be saved by converting as many of them to residential buildings. The rest will be saved.
@jackjanpour8532
@jackjanpour8532 11 ай бұрын
@liberalculler5087 According to them 20% can be converted to residential. Guess how many of them are empty now? 20% dohh
@richardgordon
@richardgordon Жыл бұрын
Very nice analysis of what's actually going on in Commerical Real Estate.
@cliffbarber1642
@cliffbarber1642 Жыл бұрын
This was about as optimistic a view as you can imagine for this industry. Unfortunately he is looking through rose coloured glasses. There will be a massive correction in this industry. Between malls, retailers (people shopping online) and office workers (hybrid here to stay) there is a big crash coming. I’m sorry to give a sober analysis to guys like Robert in this interview.
@SamMcKinley
@SamMcKinley Жыл бұрын
Really? Offices around Grand Central look empty. He is correct that more people are returning but nothing like before
@anthonylemkendorf3114
@anthonylemkendorf3114 Жыл бұрын
Californians are abandoning commercial offices and retail space. My coastal town is probably 1/3 empty.
@brendansherry8737
@brendansherry8737 Жыл бұрын
The model is Trump tower. Part of it is residential real estate, part of it is offices, part is bars and restaurants.
@romanr7232
@romanr7232 Жыл бұрын
"expecting interests rates are stabilising and coming down...." ....yeah sure...
@DigitalMadrigal
@DigitalMadrigal Жыл бұрын
Remote work is a rare win for both workers and employers. Kills cities tho.
@patientfirbolg3299
@patientfirbolg3299 Жыл бұрын
It doesn't have to with proper zoning
@DigitalMadrigal
@DigitalMadrigal Жыл бұрын
@@patientfirbolg3299.. and pricing.
@tanvi1756
@tanvi1756 Жыл бұрын
RIP Commercial real estate.💐💐
@farnio
@farnio Жыл бұрын
“We have learned that commercial real estate is more than just office buildings” Ya think??? 🤦🏾‍♀️
@Stoneface_
@Stoneface_ Жыл бұрын
Ikr 😂😂
@LifeWithRilla
@LifeWithRilla Жыл бұрын
Old people are funny. We are not going to return to the office buddy
@tonysoprano1454
@tonysoprano1454 Жыл бұрын
8:45 wrong. The banks themselves will bail. Commercial real estate will be dumped
@Anthony-dj4nd
@Anthony-dj4nd Жыл бұрын
Tell me lies, tell me sweet little lies!😂
@sonnysjsu
@sonnysjsu Жыл бұрын
2 owners of famous hotels in SF walked away from their loan a few days ago.
@freedomordeath89
@freedomordeath89 Жыл бұрын
A, B, Cs commercial real estate... Sounds like 2007s subprimes
@ghosthdel3098
@ghosthdel3098 Жыл бұрын
There wont be any crash in commercial real estate. My sister is a VP working for a Large international investment bank begins with M ending with a Y and she told us in the family party that they are forcing people to come in to the office.
@thebigballer2434
@thebigballer2434 Жыл бұрын
Why on earth would you say that? Its already crashed look at the values. It still nowhere near the bottom either. You know theres half a trillion CRE that has to refi in the next 6 months and JPM is estimating a 20% default rate. Thats a lot of supply that is about to hit the market at fire sale prices. All this will be devastation to the banks too
@Stoneface_
@Stoneface_ Жыл бұрын
Morgan Stanley😂
@rebeccavoodoo2191
@rebeccavoodoo2191 Жыл бұрын
That’s a crock of shiny Commercial Real Estate is in trouble banks are heavily exposed …and unsecured corporate debt too
@JamesMEsler
@JamesMEsler Жыл бұрын
He’s trying to sell a mule as a horse
@jenny-DD
@jenny-DD 8 ай бұрын
Putting lipstick on a pig won't change anything
@The_North_Star_of_Wall_Street
@The_North_Star_of_Wall_Street Жыл бұрын
Abcèdefg buildings 😂. Who cares they r empty
@jwfcp
@jwfcp Жыл бұрын
People want houses, including the people in them. Hoping that working people default does not solve the problem that working people need homes.
@abuchanan821
@abuchanan821 Жыл бұрын
The idea that A office buildings don't have any worries is...complete and total fantasy
@JenPurple2022
@JenPurple2022 Жыл бұрын
He is absolutely right 😂 - Different asset classes - A, B, C, D different building classes in office section - Geographical differences - Cyclical vs long run 80%; Tech office usage - Financing, banks 1/2% assets in office buildings loans, 20% out of the 1/2% will be problematic - Headlines sensational overstated - Ultimately, the economy will determine the results
@gregfawcett5152
@gregfawcett5152 Жыл бұрын
This guy is 180 degrees wrong...currently a glut of office space that is not leased.
@oldcat87
@oldcat87 Жыл бұрын
Single family houses are kings
@geraldbrowne
@geraldbrowne Жыл бұрын
The guy is full of it! Office buildings won’t cash flow
@SamMcKinley
@SamMcKinley Жыл бұрын
I enjoy Bloomberg News. Legit discussions. Storage, hotels and those low class strip malls do well. People buy liquor, fast food, and convenience store. Those do well
@chrispaul1117
@chrispaul1117 Жыл бұрын
lol....shilllllllllllllll
@potatopotatopotatotomato9035
@potatopotatopotatotomato9035 Жыл бұрын
office building great for llvijng when ai is gonna take ur job and ubi is gonna be introdyuced and maybe this guy might get a 0.2% kickback froim the goverment
@danc.7835
@danc.7835 Жыл бұрын
That was very informative
@jasonhbush
@jasonhbush Жыл бұрын
So much hopeium and cope
@sugarman08
@sugarman08 Жыл бұрын
WINTER IS HERE AND I'M FROM THE NORTH😂😂😂
@dwylhq874
@dwylhq874 Жыл бұрын
Big tech firms are definitely not going to re-hire the number of people they let go of. 🙅 The tech landscape has shifted fundamentally. The work that was done by 100 people can now be done by 10 with help from LLMs. 🤖🦾Commercial real estate is on life support. 🏢🤒
@LifeWithRilla
@LifeWithRilla Жыл бұрын
Yeah thats not how this works. If employers are more productive that means we can do more. If we can do more we can earn more. Companies want to earn more not the same or less. So, if you think that companies are going to simply stop hiring because of productivity gains as if there is a roof to the amount of money they want to make you're purely delusional. They will hire more highly effective people who can earn more individually per person & they will take on more clients so they can get more investment and continue to grow exponentially. Why do you people have this idea as though there are going to be less opportunities when you know companies only care about their bottom line 😂
@josecastillo-ne4ue
@josecastillo-ne4ue 2 ай бұрын
It sounds like they are trying to talk thier way out of a problem… “our portions haven’t changed” “we just need to get people excited about our commercial real estate”
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