CPE’s February 2021 Must-Reads

Catch up on our most important stories, interviews, rankings and analyses from last month.

During the second month of 2021, we stayed focused on how commercial real estate leaders expect commercial real estate to perform this year. According to the CPE 100 Sentiment Survey, capital for real estate borrowers is expected to be plentiful, but many of the challenges to securing it that emerged in 2020 are likely to linger. JLL predicts that the construction industry faces another challenging year; the volume of work is projected to decrease, while costs will increase, resulting in as much as an 8 percent decline in overall nonresidential construction. And with the industrial sector benefiting from last year’s e-commerce surge, we sat down with DAUM Commercial’s Gus Andros and Andrew Lara to talk about what’s ahead for the Inland Empire’s industrial market.

We also took time to assess 2020 with a series of rankings that  deepen understanding of the industry in an extraordinary year. We examined the top markets for office transactions in 2020, the top 10 office completions last year, as well as the top 10 markets for industrial transactions. These rankings shed light on how the pandemic has re-shaped investment activity, and you may be surprised by some of the entries.

Most conferences moved online in 2020, to prevent the spread of the coronavirus, and the trend is continuing this year. In February, we attended the Mortgage Bankers Association’s 2021 Commercial Real Estate Finance Conference, where property types and policy issues took center stage. Then, at the Urban Land Institute’s Europe Conference, we explored how ready commercial real estate is for the big tech transformation, what goes into making a livable city, and what executives think about the future of the office sector.

February 2021 provided valuable lessons from the past year and signs of what’s ahead. Of note, a series of big-dollar investment vehicles closed, including LCN Capital Partners’ $1.3 billion in equity commitments for its third pair of sale-leaseback funds; Lionstone Investments’ $745 million U.S. Value-Add Five; and Velocity Financial Inc.’s $375 million in new funding.

Here are CPE’s must-reads for last month:

Global CRE Industry Optimistic About the Future: SIOR

On-schedule transactions increased across the board, while confidence in the industrial sector rose to its highest level since the start of the pandemic.


Industrial Real Estate Clear Leader in Moody’s Report

The true impact of the pandemic on commercial real estate will likely transpire this year, the firm’s latest report predicts.


What’s Ahead for Data Centers in 2021

In the last installment of our 2021 outlook series, Lee Kestler of Vantage Data Centers and Equinix’s Jon Lin take a deep dive into sector changes, challenges and upcoming trends.


Will 2021 Bring CRE Certainty?

A look at six big trends creating bright spots and challenges for commercial real estate in 2021.


Amazon Reveals Striking Proposal for HQ2

The Helix, a spiraling centerpiece of the 3.3 million-square-foot development, will offer a variety of alternative work environments.


Newmark Strikes Deal to Buy Knotel’s Assets

The services firm is also providing a cash infusion to the flex-space operator, which has filed for Chapter 11 reorganization.


Where Industrial Real Estate Opportunity Knocks

Strategies for navigating investment and development in the high-powered logistics sector in 2021.


1st Tower to Launch at $3.5B Philadelphia Innovation Hub

Brandywine Realty Trust’s $287 million high-rise will be the first vertical project at the Schuylkill Yards development.


Top 10 States for LEED Certification

The real estate industry’s commitment to sustainability is stronger than ever, despite a decline in projects earning the certification.


A Sneak Peek Inside Brookfield’s 660 Fifth Avenue Revamp

Key features of the $400 million overhaul include a new glass facade that triples the tower’s window area.