With reference to many movies and music, Spencer Levypart of the global client care team. CBREgave a keynote address at BizTimes Media’s annual Commercial Real Estate and Development Conference, focusing on fundamentals such as macroeconomic trends, capital markets, and attracting population and labor. The keynote was followed by a panel discussion with several leaders in Milwaukee’s commercial real estate industry, who shared their thoughts on Mr. Levy’s presentation, provided Milwaukee-specific insights, and outlined plans for 2024. We shared the department. The discussion centered on the conference theme, “Preparation.” Next Action: Are you prepared for future opportunities?” The world of commercial real estate is grappling with challenges such as rising interest rates and construction costs. Mr Levy said the real estate market was characterized by rising interest rates and the “waiting game” the industry was playing in hopes of falling rates. He predicted interest rates would stabilize in 2024, with a mild recession. “But I will also tell you that we continue to get it wrong and the economy continues to outperform,” Levy said. In his presentation, Levy emphasized that low unemployment and labor shortages are giving workers new power over management, and the impact is on remote work, hybrid work, and high-quality spaces. Demand is also being felt in the domestic office market. Employees have leverage over employers to maintain work-from-home arrangements, and employers are demanding higher quality office space, in part to encourage employees to come into the office. . He noted that Milwaukee is well-positioned for future manufacturing and industrial opportunities due to its supply of blue-collar workers, as well as the overall strength of its multifamily housing market. He encouraged developers to take advantage of incentives to build non-Class A housing. Levy said the Great Lakes region is well positioned for future growth given future climate risks, economic risks, political risks and other opportunities. “The Great Lakes region looks like it’s going to be very good in the long run,” he says. As America’s demographics change, attracting high-quality talent is essential for cities to grow, Levy said. He encouraged Milwaukee to work to position itself as an attractive location for employers and employees and not worry too much about rising costs of living. “The low cost of living means it’s a race to the bottom,” Levy said. “Acquiring quality talent is a race to the top.” “(Levy) said, “Low cost is a race to the bottom,” and that’s still the type of thing that keeps Milwaukee in the doldrums. I think it’s a conservative way of thinking.” Tim GokmanManaging director of development company Newland Enterprise, in a panel discussion. In real estate, “all the politics are local,” Levy said, noting the impact of national and international politics on the industry. Panelists also weighed in on local politics in metro Milwaukee and Wisconsin, including issues such as NIMBYism, zoning inefficiencies, and the difficulty of expanding mass transit.
What’s next for our panelists in 2024?
“I don’t think we need to wait,” Goffman said. “…the fact remains that Milwaukee has one of the most constrained housing markets in the United States. And it’s not okay if we build a housing market.” Don’t build.” Goffman said New Land Enterprises aims to expand its bulk timber building development strategy across the country in 2024. He also said the company plans to work on a model of developing housing projects for its employees.
Marianne BlishExecutive Vice President and Broker transwesternsaid it will focus on commercial mortgage-backed securities of real estate in a variety of conditions. “There’s no shortage of deals in the market. It just changes as economic conditions change,” Blish said. “I will try my best to close deals in 2024 and 2025, probably for the same amount, but the impact of interest rates on deal amounts will result in lower returns.”
kevin newellDevelopment company CEO Royal Capital Groupsaid the company will enter “cautious growth mode” in 2024 and be “ready to punch” when the development environment becomes more friendly. “We’re still doing a fair amount of land acquisitions, but we’re also looking at traditional multifamily acquisitions. We’re not doing as much in the Midwest right now, and we’re focused on growth markets. That’s a good thing.” For businesses, Milwaukee is always going to be a big part of their business. ” As a development and investment company established in 2022, three leaf partner chief operating officer derek taylor Company leaders said they recognized they were entering the market at a difficult time. “We’ve built a team over the last two years, put that team in place, and now we’re in a position to execute,” Taylor said. Taylor said the company will continue to foster partnerships with other developers in 2024, but will also explore new partnership opportunities with nonprofits and faith-based organizations, for example.