Category: News

New Federal Rules Issued Regarding Real Estate Construction, Clean Energy Projects

Posted on by Trey Jackson

Housing Construction WorkerThe Biden administration issued two new rules this week impacting real estate construction and investments in clean energy projects. 

  • Davis-Bacon: The U.S. Labor Department on Tuesday issued a final rule to overhaul Davis-Bacon standards that determine prevailing wages for workers on construction projects covered by a federal contract or financially assisted by federal grants, loans, guarantees or insurance.
    • Construction association AGC issued a statement expressing “preliminary” concerns that “this rulemaking critically missed an opportunity” to inject “more accurate data” in processes to establish prevailing wage rates in local markets across the nation.
    • Laborers and mechanics constructing transportation, energy, water, toxic site clean-ups, and other infrastructure financially supported by the bipartisan Infrastructure Investment and Jobs Act (IIJA) must meet the new Davis-Bacon requirements. (IIJA project map)
    • Inflation Reduction Act (IRA) projects receiving clean energy tax incentives are not required to meet Davis-Bacon rules, but they can qualify for increased credits and deductions if workers are paid prevailing wages. (RER’s IRA fact sheets) 
    Solar installation workers

  • “Bonus” Tax Credits: The Treasury Department and IRS on Thursday released final rules explaining how IRA “bonus credits” can be awarded to solar, wind, and associated storage projects in low-income communities. (The Hill, August 10)
    • Qualifying projects in census tracts eligible for new market tax credits (NMTCs) can receive a 10% solar credit boost, while those supported by low-income housing tax credits or Section 8 rental assistance can receive a 20% solar credit increase. (RER’s IRA “bonus rate” chart)
    • The “bonus” incentives – over “base” rate tax credit amounts – are competitive. Bonuses will be awarded through an application process run by the U.S. Department of Energy scheduled to open this fall.

The Roundtable submitted comments in June when the IRS proposed the “bonus credit” program. (Roundtable Weekly, June 30). It will update its summary of IRA-related agency guidance following analysis of the newly issued rule.

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Roundtable Members, Policymakers Discuss Key National Issues

Posted on by Trey Jackson

Real Estate Roundtable 2023 Spring Meeting

Real Estate Roundtable members and policymakers met this week to discuss pressing issues affecting CRE, including return-to-work trends, the looming refinance wave, the debt ceiling, and affordable housing challenges. The Roundtable 2023 Spring Meeting also focused on tax, climate, and regulatory proposals. (The Roundtable’ Policy Priorities and Executive Summary, April 24)

Speakers & Policy Issues

  • Roundtable Chair John Fish (Chairman & CEO, SUFFOLK), below left, and Roundtable President and CEO Jeffrey DeBoer, right, led policy issue discussions featuring the following guests:

John Fish, Commerce Secretary Gina Raimondo, Jeffrey DeBoer

  • Gina Raimondo, U.S. Secretary of Commerce

    Secretary Raimondo, center, discussed how the Commerce Department is investing billions in federal funds in infrastructure, manufacturing, and other industries to generate jobs and economic growth. The former governor of Rhode Island also focused on her recent “Million Women in Construction Initiative” during a National Public Radio Marketplace interview later the same day.

Sen. Tim Kaine (D-VA)

  • Sen. Tim Kaine (D-VA)

    As a member of the Senate Budget and Foreign Relations Committees, Sen. Kaine offered his insights on negotiations surrounding the debt ceiling, global trade, and efforts to revise federal remote work policies aimed at getting government employees back to their offices. (The Roundtable’s workplace return efforts, Commercial Observer, April 14)

Rep. French Hill (R-AR)

  • Rep. French Hill (R-AR)

    Serving as Vice-Chair of the influential House Financial Services Committee and Chairman of its new Subcommittee on Digital Assets, Financial Technology and Inclusion, Rep. Hill addressed economic issues and CRE, debt ceiling negotiations, the banking system, and monetary policy. Yesterday, the Financial Services Committee approved two bills sponsored by Rep. Hill to expand capital formation.

CBO Director Phillip Swagel

  • Phillip Swagel, Director, Congressional Budget Office

    The government’s fiscal trajectory; the impact of high interest rates on federal revenue and spending; and long-term trends in social security, immigration, and the national debt were among the topics discussed by CBO Director Swagel. (The Fiscal Times, April 25)

NHMCH President Sharon Wilson Geno

  • Sharon Wilson Géno, President, National Multifamily Housing Council

    A Roundtable member exchange on policy issues included an update on affordable housing challenges facing the industry by NMHC’s President Géno. Capital concerns affecting multifamily and commercial markets were also a topic in a recent Walker Webcast featuring Géno and The Roundtable’s DeBoer, hosted by Roundtable Member Willy Walker (Chairman & CEO, Walker & Dunlop).

Thomas Flexner and Kevin Warsh

  • Kevin Warsh, Former Member of the Federal Reserve’s Board of Governors
    Mr. Warsh, right, a member of the Fed from 2006-2011, discussed the central bank’s potential actions affecting commercial real estate markets, the wave of CRE debt maturities, and the future of the office sector, with Roundtable Treasurer Thomas Flexner, left, Vice Chairman and Global Head of Real Estate, Citigroup.

Next on The Roundtable’s meeting calendar is the all-member Annual Meeting on June 13-14 in Washington, DC. 

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Roundtable Members and Leading Policymakers Focus on National Issues Affecting CRE in 118th Congress

Posted on by Trey Jackson

The Real Estate Roundtable’s 2023 State of the Industry (SOI) Meeting this week included policy discussions with national lawmakers on issues affecting commercial real estate—including the debt ceiling, affordable housing, tax policy, climate regulations, market conditions, and evolving security threats. A special Roundtable joint committee meeting also analyzed the opportunities presented by the Inflation Reduction Act (IRA) and the ways CRE companies are navigating the law’s clean energy tax incentives. 

Speakers & Policy Issues 

Roundtable Chair John Fish (Chairman and CEO, SUFFOLK), right,and Roundtable President and CEO Jeffrey DeBoer, left, launched the meeting, which included the following speakers:

  • House Democratic Leader Hakeem Jeffries (D-NY)
  • Miami Mayor Francis Suarez (R)
  • Sen. Robert Menendez (D-NJ)
  • Sen. Katie Britt (R-AL)
  • Rep. French Hill (R-AR)
  • Former Rep. and Ways and Means Committee Chairman Kevin Brady (R-TX) and former Rep. Stephanie Murphy (D-FL) 

Roundtable Policy Advisory Committees 

  • The Roundtable’s policy advisory committees also met on Jan. 24-25 to analyze policy issues with industry experts, policymakers, and their staff, including:

Special Joint SPAC-TPAC Session 

  • The Roundtable’s Tax and Sustainability Policy Advisory Committees (TPAC and SPAC) jointly met to discuss the practical aspects of employing the IRA’s new clean energy tax credits and deductions, and how the incentives can help finance improvements needed to meet evolving regulatory requirements and investor expectations. [Photo: panel moderators TPAC Vice Chair Catherine Perrenoud (Tax Director, Johnson Management LLC), left, next to Roundtable Board Member and SPAC Chair Anthony Malkin (Chairman and CEO, Empire State Realty Trust)]

Research and Real Estate Capital Policy Advisory Committees (RECPAC) 

  • Rep. Andy Barr (R-KY), above, shared his insights on capital and credit issues as chairman of the House Financial Services Subcommittee on Financial Institutions and Monetary Policy. Panels on real estate capital markets and debt markets also engaged Roundtable members in wide-ranging discussions on current economic conditions.

    Tax Policy Advisory Committee (TPAC) 

  • Speakers at the TPAC meeting included senior House Ways and Means Committee member Darin LaHood (R-IL), above, a bipartisan panel of senior staff from the congressional tax-writing committees, and the Treasury Department’s attorney advisor for partnership and pass-through tax issues. The policymakers focused on tax and economic policy priorities for the year ahead.

    Sustainability Policy Advisory Committee (SPAC) 

  • HSTF members were briefed on the current threat environment to CRE by Linda Reid (VP, Security Operations, Walt Disney), right, and National Football League Security Chief Cathy Lanier, left, who also serves as vice-chair of CISA’s Commercial Facilities Sector Coordinating Council. Other discussions focused on cyber crime threats, fraudulent lease applications, organized criminal retail theft, and other security challenges facing commercial sector facilities. 

Next on The Roundtable’s FY2023 meeting calendar is the Spring Meeting on April 24-25. This meeting is restricted to Roundtable-level members only. 

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Fed’s Climate Risk Assessment Exercise Will Include Impact on Banks’ CRE Portfolios

Posted on by Trey Jackson

Federal ReserveThe Fed released new details this week about its “pilot climate scenario analysis”—an exploratory exercise that will require six major banks to report by July 31 on how extreme weather event scenarios would impact their operations, investments and real estate portfolios. (Reuters, Jan. 17 and Politico PowerSwitch, Jan. 19)

Risk Scenarios & CRE

  • The pilot exercise aims to learn about climate risk-management practices and challenges of the six largest U.S. banks—and enhance their ability to identify, measure, monitor, and manage climate-related financial risks.
  • The banks will analyze the impact of two risk scenarios on corporate and CRE lending exposures in their portfolios, according to the Fed’s 52-page set of instructions for Bank of America, Citigroup, Goldman Sachs Group, JPMorgan Chase, Morgan Stanley and Wells Fargo. (Fed news release, Jan. 17)
  • One scenario will include how storms, floods and other “physical risks” could affect residential and commercial real estate portfolios in northeast over a one-year horizon.
  • The second scenario will focus on “transition risks,” which refers to financial stresses caused by regulations and market forces that compel shifts to a lower carbon economy. The banks will analyze impacts over a 10-year horizon, using a scenario based on current policies—and one based on reaching net zero greenhouse gas emissions by 2050. (Yahoo News and Fed Participant Instructions, Jan. 17)

What’s Next

Federal Reserve's 2023 pilot climate scenario analysis

  • The Fed plans to publish a summary of its climate scenario analyses by the end of 2023.

  • Banks will calculate and report to the Fed on credit risk parameters such as probability of default, internal risk rating grade, and loss given default.
  • The Fed’s climate exercises are different from bank stress tests, since these climate risk scenarios are exploratory in nature and have no capital consequences. (Fed Participant Instructions, Jan. 17)
  • The central bank’s exercises come as various federal agencies are taking action on risks that climate change may pose to the economy.
  • The Securities and Exchange Commission (SEC) is expected to issue climate disclosure regulations from by April. The proposed rules would require all registered companies to disclose material financial risks related to climate change, and may include new disclosure requirements for “Scope 3” GHG emissions. The Roundtable submitted extensive comments last year on the SEC’s about the proposal. (Roundtable Weekly, June 10)
  • The Federal Insurance Office within the Treasury Department has also requested information on climate-related financial risks from the insurance sector to identify geographic areas that might lack coverage. (ClimateWire, Jan. 18 and Federal Register, August 31, 2021)

Climate-related regulatory proposals affecting CRE will be among the topics discussed during The Roundtable’s Jan. 24-25 State of the Industry Meeting in Washington, DC.

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Fed Adopts SOFR as Fallback Benchmark Rate to Replace LIBOR on Certain Legacy Contracts

Posted on by Trey Jackson

Federal ReserveThe Federal Reserve Board on Dec. 16 adopted SOFR (Secured Overnight Financing Rate) as the fallback benchmark rate to replace LIBOR (London Interbank Offered Rate) in certain financial contracts after the use of LIBOR expires on June 30, 2023. (Federal Register notice and Bloomberg Law, Dec. 16)

LIBOR to SOFR

  • LIBOR was the dominant reference rate used in recent decades for financial contracts—including commercial real estate debt, mortgages, student loans and derivatives—worth an estimated $223 trillion. (Roundtable Weekly, Dec. 10, 2021.)
  • The Fed’s action this month implements a final rule from the Adjustable Interest Rate (LIBOR) Act (H.R. 4616)—passed by Congress in March to provide a uniform, nationwide solution for so-called tough legacy contracts that do not have clear and practicable provisions for replacing LIBOR. (Roundtable Weekly, March 11, 2022)
  • The Real Estate Roundtable and 17 national trade groups submitted letters in 2021 on April 14 and July 27 to policymakers in support of measures to address “tough legacy” LIBOR-based contract issues. (Roundtable Weekly, Dec. 10, 2021)

Final LIBOR Rule

Libor transition to SOFR image

  • The final rule identifies replacement benchmark rates based on SOFR to replace overnight, one-month, three-month, six-month, and 12-month LIBOR in contracts subject to the LIBOR Act. These contracts include U.S. contracts that do not mature before LIBOR ends and that lack adequate “fallback” provisions that would replace LIBOR with a practicable replacement benchmark rate. (Fed Reserve Board’s memo, Dec. 2 and Fed news release, Dec. 16)
  • The final rule also restates safe harbor protections contained in the LIBOR Act for market participants who need to switch existing LIBOR-referencing financial contracts to a replacement benchmark for debt instruments before the replacement date on June 30, 2023. (Federal Register notice on LIBOR)

The LIBOR transition will be among the issues discussed during The Roundtable’s Real Estate Capital Policy Advisory Committee’s (RECPAC) next meeting on Jan. 24 in Washington, DC during The Roundtable’s State of the Industry Meeting.

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Roundtable Responds to EPA’s Inquiry Regarding  Indoor Air Quality

Posted on by Trey Jackson

EPA logoThe Real Estate Roundtable on Dec. 5 responded to a recent Environmental Protection Agency (EPA) Request for Information on Indoor Air Quality (IAQ) management, which posed questions about a possible new building “label” program. (Roundtable comments and EPA’s Federal Register Notice) 

Roundtable Comments 

  • A public-private partnership federal recognition program that commends leadership in IAQ design and management could be a key component of a return to healthy workplaces, The Roundtable stated in its comments.
  • The Roundtable urges policymakers and business leaders to push for the safe return of employees to their physical workspaces to benefit productivity and help reinvigorate small businesses in downtown neighborhoods—an essential contributor to urban communities and their tax bases. (Roundtable Weekly, Dec. 2)
  • Should EPA move forward to propose any criteria for a potential IAQ label, The Roundtable commented that the agency must: 
    • Identify clear statutory authority and adequate federal resources to ensure its long-term viability;
    • Conduct an initial pilot program for testing in actual buildings to reflect real-world experiences of commercial real estate practitioners (including private sector and federal building owners); and
    • Demonstrate support for best practices and procedures that sequentially (I) control emissions and off-gassing from indoor sources, (II) improve ventilation rates, and (III) enhance air filtration and cleaning. (EPA’s IAQ best practices webpage) 

The Roundtable’s Sustainability Policy Advisory Committee (SPAC) has a long, successful track record of collaboration with EPA and the Department of Energy in the development of numerous voluntary recognition programs, which are listed in the comments.

Healthy Return to Office 

Healthy Workplace Coalition logo

Return-to-the-office is a significant industry priority that will be discussed during The Roundtable’s all-member State of the Industry Meeting on January 24-25 in Washington, DC. 

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House Republicans Win Majority as Democrats Face Leadership Transition; Lame Duck Session May Include Tax Extenders

Posted on by Trey Jackson

Capitol reflective photo

Significant transition came to Washington this week as Republicans officially secured a slim majority in the House of Representatives for the 118th Congress that convenes on Jan. 3. The GOP will control House committees for the final two years of President Biden’s current term, ensuring a clash of policy approaches. (Associated Press, Nov. 17 and Wall Street Journal, Nov. 16)

New House Leadership

Nancy Pelosi steps down as Democratic House Leader

  • Confirmation of the new majority ushered in leadership votes in both chambers. House Speaker Nancy Pelosi (D-CA), above, and Majority Leader Steny Hoyer (D-MD) announced they will step aside while continuing to serve in Congress. (Pelosi’s House floor comments | C-Span video, Nov. 17 | The Hill, Nov. 17)
  • The announcements pave the way for a new generation of House Democratic leadership likely to be filled by Reps. Hakeem Jeffries (NY) as minority leader; Katherine Clark (MA) as House whip; and Pete Aguilar (CA) as caucus chair. (Politico, Reuters and Wall Street Journal, Nov. 18 | Business Insider, Nov. 17)
  • House Republicans voted this week to nominate House Minority Leader Kevin McCarthy (CA) for speaker. (Axios and NBC News, Nov. 15)
  • Other members of the House Republican leadership team include Representatives Steve Scalise (LA), Elyse Stefanik (NY), and Tom Emmer (MN).  (The Hill and Times Union, Nov. 15)
  • Several House races remain too close to call. (NY Times, Nov. 18)
  • In the Senate, Minority Leader Sen. Mitch McConnell (R-KY) defeated a challenge by Sen. Rick Scott (R-FL) for Republican Minority Leader. (Louisville Courier Journal and USA Today, Nov. 16)
  • Democrats retained their control of the upper chamber and Sen. Chuck Schumer (D-NY) will continue in his position as Senate Majority Leader. (BuzzFeed, Nov 16)

Lame Duck Session

Senate Finance Committee Chairman Ron Wyden (D-OR)

  • During the lame duck session, lawmakers will consider which policy riders to attach to must-pass spending legislation. Current government funding expires on Dec. 16.
  • Tax issues of importance to CRE that may be considered include rules related to business interest deductibility and an expired, temporary increase in allocations of low-income housing tax credits (LIHTCs) to states. Additionally, the 100% bonus depreciation benefit starts phasing down at the end of this year. (BGov, Nov. 16 and Roundtable Weekly, Nov. 11)
  • Senate Finance Chair Ron Wyden (D-OR), above, said this week that tax extenders are “obviously” a priority for the panel. “All of the negotiators are committed to getting this done before we wrap up,” Wyden commented. (PoliticoPro, Nov. 15)
  • Wyden added that he is also focused on energy and housing issues, including a new tax break to subsidize housing for average Americans. “There’s room to work on these issues in a bipartisan way as well,” Wyden noted. “Housing tax credits, for example, have long had bipartisan support.” (BGov, Nov. 14)

Rep. Kevin Brady of Texas, the top Republican on the tax-writing House Ways and Means Committee, last week said he is talking with Democrats about a potential lame duck deal on taxes. (PoliticoPro, Nov. 10)

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Rising Interest Rates, Tighter Liquidity, Hybrid Work, and Cost Cutting Reflected in Roundtable’s Q4 Sentiment Index

Posted on by Trey Jackson

Q4 Sentiment Index chart

The Real Estate Roundtable’s Q4 Economic Sentiment Index dropped to an overall score of 39, five points lower than the previous quarter. Commercial real estate executives cited a reduction in available equity and debt capital, changes in post-pandemic office use, general business cost cutting, and employee layoffs among the contributing factors causing market uncertainty and a decrease in transactions. (News Release and Entire Q4 Report, Nov. 18)

Roundtable ViewJeffrey DeBoer Real Estate Roundtable

  • Roundtable President and CEO Jeffrey DeBoer, above, said, “Industry executives report that asset valuation difficulties, coupled with the tightened availability and cost of capital, have caused a slowdown in commercial real estate investment and overall transactions. This situation, magnified by steep inflation and interest rate hikes, is leading to investor hesitancy. Additionally, while some businesses are instituting greater return-to-the-workplace policies, many are not, partially due to employee reluctance. Ultimately, greater clarity on businesses’ future post-pandemic workspace demands is needed to provide a more reliable window into asset valuations, particularly in the office sector.”
  • “As an industry, we’re working with tenants to provide attractive building safety and use amenities—and where possible, converting underutilized property types to other uses, including housing. We continue to urge policymakers and business leaders to push for the safe return of workers to their shared, physical workspace. A back-to-the-workplace movement would increase overall economic productivity and competitiveness, help preserve urban small businesses, and lower the threat to the property tax base of municipalities throughout the nation,” DeBoer added.
  • The Roundtable’s Economic Sentiment Index—a measure of senior executives’ confidence and expectations about the commercial real estate market environment—is scored on a scale of 1 to 100 by averaging the scores of Current and Future Economic Sentiment Indices. Any score over 50 is viewed as positive.
  • Although the Q4 Overall Index registered an Overall score of 39, the Current Index registered 29—a nine-point drop from Q3 2022—and the Future Index posted a score of 48 points, a dip of three points from the previous quarter. (Download Q4 report, Nov. 18)

Market Perspectives

RXR's Scott Rechler on CNBC's Squawk on the Street

  • The return of office workers to buildings in New York, Boston, Atlanta, San Francisco and other cities is languishing well below pre-pandemic levels as hybrid work, layoffs and higher interest rates act as drags on the office market, according to a Nov. 17 New York Times article. Despite the headwinds, office owners believe demand will eventually return.
  • Roundtable Chairman Emeritus (2015-2018) William Rudin (Co-Chairman & CEO, Rudin Management Company, Inc.) noted in the article that occupancy was much higher at buildings occupied by financial companies, many of which have required employees to return to the workplace.
  • The impact of layoffs, macroeconomic trends, and office demand were discussed this week by Roundtable Board Member Scott Rechler (Chairman CEO, RXR), above, in a CNBC Squawk on the Street interview. Rechler, a member of the New York Fed, said he expects the next 12 to 18 months will be “choppy” as the Federal Reserve continues to fight inflation, but that a strong economy will emerge with significant growth potential.

Economic conditions and commercial real estate markets will be discussed during The Roundtable’s Jan. 24-25 State of the Industry in Washington.

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Post-Election Lame Duck Session Faces Crowded Agenda

Posted on by Trey Jackson

Capitol after storm

Congress returns next week for a lame duck session after the midterm elections, which have left party control in the Senate and House uncertain as final votes are tallied in races throughout the country. A new policy landscape for 2023 will take shape as current policymakers work on a funding deal by Dec. 16 to avert a partial government shutdown. (CBS News, “The unresolved 2022 House and Senate races that will determine control of Congress,” Nov. 10) 

Omnibus Riders 

  • Lawmakers return Nov. 14 but the official lame-duck session will not begin until Nov. 28, when the top priority will be an “omnibus” spending bill. (BGov, Nov. 7)
  • A diverse array of policy priorities will be considered as possible add-ons to the must-pass fiscal 2023 appropriations package, including several issues of importance to commercial real estate. (Roundtable Weekly, Oct. 21)
  • Among the many tax issues under consideration are recently expired provisions passed as part of the Tax Cuts and Jobs Act of 2017 (TCJA), including rules related to business interest deductibility. Also in play are an expired, temporary increase in allocations of low-income housing tax credits (LIHTCs) to states. Additionally, the 100% bonus depreciation benefit starts phasing down at the end of this year.
  • A key element of House Republicans’ Commitment to America policy agenda released in September is to make permanent provisions from the TCJA that have recently expired or are scheduled to sunset. (Tax Notes, Nov. 10 and Bloomberg, Sept. 23)

What’s Next

Reps. Neal and Brady Ways and Means

  • Rep. Kevin Brady of Texas, the top Republican on the tax-writing House Ways and Means Committee who is retiring at the end of the year, said he is talking with Democrats about a potential lame duck deal on taxes, but is ambiguous about its prospects. According to PolticoPro, Brady said, “It’s so difficult to predict,” noting that lame ducks “can be lightning quick or they can go through mid-December.” [Photo: Brady, right, with Ways and Means Chairman Richard Neal (D-MA)]
  • A massive end-of-year spending package may also include another extension of The National Flood Insurance Program, which is now more than $20 billion in debt and extended on a short-term basis more than 20 times. (BGov, Nov. 7) 

Congress will also need to raise the federal borrowing limit within the next six months to avoid a government default. The 118th Congress convenes on January 3, 2023.

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“Emerging Trends in Real Estate” Reveals Bifurcated Market as Industry Adapts to Pandemic and Economic Influences

Posted on by Trey Jackson

Emerging Trends in Real Estate 2023 - cover image

The Roundtable’s Real Estate Capital Policy Advisory Committee (RECPAC) met this week to discuss the current state of credit and capital markets. The Urban Land Institute (ULI) and PwC US also provided data points about market fundamentals in their recently issued publication, Emerging Trends in Real Estate 2023.

Shift to “New Normal”

  • RECPAC’s meeting in New York City focused on interest rate trends, global capital flows, and the implications for financing and property development. (For more information on RECPAC, contact Roundtable Senior Vice President Chip Rodgers or call 202-639-8400.)

  • ULI-PwC reports that industry participants are cautiously optimistic amid diminishing pandemic tailwinds and the potential for a “short yet shallow” recession. (ULI, Oct. 28 | download 125-page report)
  • The annual report—a compilation of data and insights from 2,000 real estate experts—shows the industry is:
    • Reassessing the use of office space,
    • Addressing climate change impacts and ESG demands,
    • Experiencing a shift in investor sentiment and capital, and
    • Facing new opportunities from government infrastructure spending.

  • The report’s survey revealed bifurcated market trends, with some aspects of the industry reverting to pre-pandemic patterns as others shift to a “new normal” that includes remote work arrangements. (PWC website | download full report)

Asset Classes in Flux

Emerging Trends 2023 CRE Price Index - graphic

  • ULI Senior Vice President Anita Kramer commented that as people continue to adapt to pandemic-influenced changes in their lives, property asset classes are in flux as owners and investors assess how to move forward. (Bisnow, Oct. 27 and  (ULI news release, Oct. 27)
  • Byron Carlock, US real estate leader for PwC and a member of The Real Estate Roundtable, told REjournals this week that challenges facing CRE include rising interest rates, return-to-the-office issues, and the possibility of converting office space to alternative uses. (Interview with Midwest Real Estate News, Nov. 2)
  • Carlock said, “The downtown buildings with large floor plates built from the ‘60s to the ‘80s might need a change. That’s significant because about 80% of our office stock was built in the ‘80s or before. We will see a great change in which office space is relevant and which is not.” (Roundtable Weekly, Oct 12—“Real Estate Industry Urges Lawmakers to Consider Tax Incentive for Property Conversions”)

Roundtable Reports

ARDA panel - group shot

  • Roundtable President and CEO Jeffrey DeBoer this week discussed the industry’s public policy agenda on the verge of the midterm elections during the American and Development Association’s Fall 2022 Conference in Washington. [Photo, left to right: ARDA President and CEO Jason Gamel, Former Congressman (R-PA) and Chair of the House Transportation Committee Bill Shuster, Jeffrey DeBoer, and U.S. Travel Association President and CEO Geoff Freeman.]

The Roundtable plans to release its Q4 Economic Sentiment Index report next week. The quarterly index provides a gauge of CRE leaders’ views about the overall health of property markets, debt and capital availability, pricing, and asset values.

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