CPE Executive Council: Which Asset Classes Will See the Most Investment & Development?

Office? Industrial? Data centers? When it comes to asset classes, CRE investors and developers have a a lot of options. But which areas will net the largest ROI? The CPE Executive Council shares their insights.

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Niche Markets

I think we will continue to gain development and investment momentum with industrial outdoor storage (IOS) properties. Institutional money is starting to take notice for this niche product type and interest continues to grow. Additionally, I think we will start to see more retail development as there is definitely a shortage of supply, which prompted less than stellar leasing velocity in many markets in 2023. Finally, I think we will continue to see investment and development activity for adaptive reuse properties. We are just at the beginning of the adaptive reuse trend. —Dave Ebeling, owner, Ebeling Communications

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Storage Options

I’m going to cheat a bit and say industrial because that rubric includes a lot of subtypes that are either in favor or are gaining favor. Warehouse/distribution certainly, but manufacturing is on an upswing due to target government stimulus and the trend toward onshoring/reshoring/nearshoring/friendshoring. Data centers are booming because of the interest in data science and cloud computing. Cold storage is also gaining favor as many realize its value and the poor quality of most existing inventory. Even some life science space falls into this category. It has a lot engines pulling the train. —Ryan Severino, chief economist & head of U.S. Research, BGO

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Data Trends

We are seeing most activity in data centers, likely due to AI use increasing demand, multifamily of all types and grocery anchored and other neighborhood retail. —Barbara Trachtenberg, co-vice chair, US Real Estate, DLA Piper

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Search Activity

We are seeing a lot of new executive search activity around the IOS sector. If I had to pick a surprise, it’s the reinvigorated interest in retail. —Michael Uzyak, senior managing director, Specialty Consultants

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Interested in joining the CPE Executive Council and being featured in future articles? Email Jessica Fiur.