Commercial banking industry experts Zena Diggs, Ursula Moncau, and Alec Bliss, along with moderator Peter Billmeyer, SIOR, discussed the current state of capital markets, the future of commercial loans, and the impact of interest rates on commercial real estate at the SIOR Chicago Chapter’s Speaker Series luncheon. Though they agreed that interest rates will continue to rise, they cautioned that loan velocity remains and opportunities still lie ahead. They also noted that, while they are open for business with new clients, there is an additional focus internally and on supporting existing top sponsors. And in an answer to the “what if” question, the panelists agreed that we are in more of a reset than a recession.
Over the course of two days, members from across Europe and Africa met in Berlin for the SIOR European Chapter’s fourth “Mind Your Own Business” event, an exclusive member-only deal-making and leadership affair. Hosted by Cave Leighton Paisner LLP, the meeting provided a great platform to talk about current market conditions as well as how to create business together in challenging times. Following market summaries from members, Armin Völlnagel, SIOR, gave a detailed presentation about the German office real estate investment market. Along with his team at CA Immobilien Anlagen AG, Matthias Schmidt led the group on a site visit to the “Cube” and KPMG’s soon-to-be-completed office building near the Hauptbahnhof. The surrounding area has undergone substantial redevelopment over the years, with CA Immobilien as the leading German/Austrian developer in Berlin, if not the country.
A record 100 members, sponsors, and guests gathered at San Francisco’s historic Ferry Building for the SIOR Northern California Chapter’s annual kick-off event. Moderator Jordan Schnitzer and panelists Bryan McKrell, John Tarlton, and Abbie Wertheim primarily discussed the continued growth of industrial product. Though the topic of converting downtown office buildings to biotech surfaced, the developers offered reasons that would make this unfeasible. They noted that lab facilities typically need significant vertical spaces above the ceiling for heating/cooling ductwork as well as ducting from fume hoods and lab equipment. Moreover, electrical requirements tend to be several times that of what is available in an office building, and floor loads might not be strong enough to support the laboratories above the first floor.
Not one to break with tradition, the SIOR St. Louis Chapter hosted its 38th Annual Metro Market Forecast at the Ritz-Carlton, St. Louis, boasting over 60 sponsors and 600 registrations. Attendees heard presentations on office, industrial, and investment markets from speakers including St. Louis Chapter President D. Sheldon Johnson III, SIOR; SIOR Global President Patricia Loveall, SIOR; Daniel Freeland, SIOR; Matt Eastin, SIOR; and Joseph Hill, SIOR.
Inclement weather did not deter guests from attending the SIOR Wisconsin Chapter’s Industrial Panel at Luxe Golf in Franklin, Wis. Panelists Bob Smietana, Laura Hyde, Chris Wilz, along with moderator Jeff Hoffman, SIOR, guided attendees through the industrial long game. They noted that the 2023 industrial market is starting on the heels of another record-setting performance with historically low vacancy rates and insatiable tenant demand. In addition to the boom of e-Commerce, American manufacturing is back. They further observed that the 2020’s are poised to be one of the most transformational decades of an industry that we have ever experienced, but macro challenges are creating significant headwinds. Overall, raising interest rates, stubborn inflation, geopolitical unrest, difficult labor markets, and the looming threat of recession command the headline news stories.