Shake It Off: Office investing is coming back

Shorenstein CEO Brandon Shorenstein and CBRE’s Patrick Gildea discuss why the office market is poised for a comeback. Hear what they have to say about risk-adjusted returns, property conversions, the importance of workplace amenities and more.Key takeaways on office investing: Office market is recovering: Investment activity in the office sector is rebounding with more bidders and increased debt availability. Investment strategies have shifted: Investors are focused on cash flow and downside protection, with cash-on-cash yields reaching 8%–15%. Micro-market dynamics are key amid a flight to quality: Prime assets in live-work-play submarkets are outperforming, while obsolete buildings face demolition or conversion, reducing overall supply. Conversions are limited: Selective repositioning is critical, as only a small percentage of office buildings are structurally viable for residential or hotel conversions. Occupier priorities have changed: Tenants now prioritize wellness, sustainability and experiential amenities, driving demand for high-quality spaces.

Clarion’s Brent Jenkins and CBRE’s Zaahir Syed discuss how capital raising for real estate is rapidly evolving. They provide insights on fund development, non-traded REITs, emerging opportunities in private wealth markets and more.Key takeaways on raising and deploying capital: Sourcing real estate capital is diversifying, with growing emphasis on private wealth and new opportunities to tap into the defined-contribution (DC) market.Accessing retail capital and 401k plans through DC channels is potentially a major area of growth, requiring new product structures and daily liquidity solutions.Fund managers must strategically align vehicle structures with investor objectives and market conditions for both short- and long-term capital needs.

Mortenson’s Maja Rosenquist and CBRE’s Gordon Dolven examine one of real estate’s most dynamic sectors. They discuss how AI’s growth has accelerated data center development, how site-selection strategies are evolving and the challenges posed by power constraints.  

CBRE Investment Management’s Co-CEO and CIO, Adam Gallistel, offers insights on where real assets investors can find strong return opportunities in today’s market. He discusses shifting strategies amid higher interest rates, alternative asset classes, the role of operational expertise and why Europe offers attractive relative value right now. Prioritize operations and asset selection: Gallistel emphasizes that “hope is not a strategy”—returns will come from income growth and strong asset selection rather than relying on market-driven cap rate compression. Diversification matters: Niche sectors like data centers and student housing offer non-correlated income streams and resilience compared to traditional “big four” asset classes. Europe looks compelling: Europe offers relative value and growth potential, making it an attractive complement to a U.S. property portfolio. Infrastructure and power are critical: CBRE IM is investing in solutions like battery storage and renewable energy to capitalize on growing demand for power in the digital economy. Overlooked markets show promise: Gallistel sees opportunities in U.S. Midwest real estate markets as supply dynamics shift.

Coca-Cola’s Michael Moore shares how the iconic brand activates its workplace in 82 countries. The company seizes on flexibility, local culture and innovative design to drive effectiveness, space utilization, brand impact and global growth.·     relationships and talent pools in 82 countries. ·     Coca-Cola balances global brand consistency with local cultural expression, using design to reflect community identity within the framework of corporate standards. ·     A flexible real estate strategy, favoring leased over owned space and shared offices in emerging markets, enables Coca-Cola to scale quickly while managing risk. ·     The company’s “Main Street” workplace model is intentionally designed to foster collaboration and efficiency by integrating amenities and flexible, open space. ·     Success is measured by how well the workplace supports productivity, employee sentiment and business outcomes.

Gensler’s Diane Hoskins explains the workplace design trends that are meeting the evolving needs of today’s workforce. She discusses how hybrid work shapes office plans, the importance of reflecting local culture and AI’s growing impact.Key takeaways on Gensler’s views of workplace design: ·     Workplace design is in flux: Today's offices require a rethink of the work environment, shifting from rigid layouts to flexible spaces. ·     One size doesn’t fit all:  From law firms to tech companies, bespoke design strategies—rooted in culture, function and employee satisfaction—are outperforming cookie-cutter solutions across sectors. ·     Destination workplaces are on the rise: Companies are investing in spaces that attract talent and foster collaboration, turning offices into places where people want to be. ·     AI is changing the game: Artificial intelligence is revolutionizing architectural visualization, enabling real-time design iteration and deeper client engagement.

CBRE Global Head of Research Henry Chin sizes up Q3 investment activity, which was stronger than anticipated, and reveals which asset classes are best positioned for Q4 and 2026.Key Takeaways on Commercial Real Estate Investment Trends U.S. real estate is entering a prime investment window as repricing and improving fundamentals create opportunity.Retail and office sectors are attractive plays, as rents bottom out and occupier demand increases.Investors should explore value-add strategies and secondary assets. Demand should spillover as vacancy in top-tier space continues to shrink and future supply in office and retail remains constrained. Alternative assets are evolving from niche to institutional, but investors should remain disciplined about entry pricing and mindful of the needed operational expertise.With volumes poised for double-digit growth in 2026 amid a durable market recovery, investors can benefit from early positioning and data-driven conviction.

Author Jean Twenge, Ph.D., explains the implications of four different generations working together. As Gen Zers increasingly join millennials, Gen Xers and a shrinking cohort of baby boomers in the workforce, their varying needs, attitudes and aptitudes are driving workplace changes.·     Generational shifts are reshaping the workplace: Organizations are navigating the most pronounced generational transition in decades, with differing expectations around leadership styles, collaboration and work-life harmony.·     Delayed life milestones impact real estate demand: Trends like marrying later in life, postponing homeownership and having fewer children are catalyzing demand for adaptable, amenity-rich properties.·     Technology is a key driver of generational change: From smartphones to social media, tech has fundamentally altered how each generation communicates, works and interacts—creating both opportunities and challenges for office culture and productivity.·     Hybrid work reflects generational preferences: The way different generations value in-person collaboration, flexibility and autonomy gives hybrid work models staying power.·     Empathy is essential for cross-generational leadership: Understanding the distinct values and experiences of each generation, and applying that knowledge in how you communicate  and set policy, can build stronger connections with colleagues.

Author Sam Conniff argues that the boldest leaders don’t play it safe—they have a strategy for rewriting the rules. This episode explores how pirate-inspired thinking and resolute action can help executives navigate uncertainty, unlock innovation and lead with courage amid change.·     Leaders who embrace change as a strategic advantage can outperform peers.·     Championing shared values, self-governance and rule-breaking offers a provocative framework for rethinking organizational culture.·     Emotional intelligence can be a critical competency for business executives.·     Prioritizing the short-term over the long-term can cost organizations capital and credibility.·     Leaders should challenge industry “settled” truths to unlock workplace innovation.

 This week we shine a light on REITs in the U.K. Two London-based experts discuss what’s driving deal flow, investment strategies and long-term returns, especially in logistics, retail and hospitality.·      Triple-net REITs in the U.K. offer predictable income and resilience through market cycles.·      Urban logistics and convenience retail are leading sectors, driven by consumer behavior and e-commerce demand.·      Sub–£20-million lot sizes are drawing interest from family offices and regional investors focused on low-debt, high-efficiency deals.·      M&A is accelerating REIT scale and relevance, enabling cost synergies, dividend growth and greater appeal to global capital.·     Interest rate spreads and swap differentials can make U.K. real estate increasingly competitive against European and U.S. markets.