Make Way: Why European logistics is built for the long haul

Recorded during a CBRE event in Barcelona, Panattoni’s Robert Dobrzycki and CBRE’s Jack Cox explore the European logistics market with a focus on opportunities in today’s market.Growth in Europe’s Industrial & Logistics sector is expected to driven by demand from 3PLs, e-commerce and manufacturing.Operational expertise is crucial in Industrial & Logistics, particularly in denser urban environments.Data centers is a growing niche, with high investment potential.The European logistics market is more fragmented than in the US. There's also less development and labor costs play a bigger role in the investment equation.Geopolitics, evolving trade policies and technology advancements all have an influence on the European logistics market.

·     With sub-3% vacancy and strong rent growth, Industrial Outdoor Storage (IOS) is outperforming traditional industrial assets.·     Zoning and entitlement hurdles limit new IOS development, boosting demand for existing sites.·     Major investors are amassing IOS portfolios, following the path of self-storage and single-family rental.·     IOS supports logistics, construction and utilities with strategic infill locations and flexible outdoor space.·     Electrification and evolving logistics technology are reshaping IOS.

Macquarie Group’s Andrew Burdick pulls the curtain back on the company’s newly reimagined Americas headquarters in Midtown Manhattan. Burdick and CBRE’s Lenny Beaudoin discuss how design, flexibility and sustainability can converge to create spaces that foster innovation, support company culture and drive long-term value.·     Workplace design can reflect and reinforce your organization’s mission and culture. When space aligns with purpose, it becomes a tool for engagement, innovation and long-term employee satisfaction. ·     Design an office to support various ways of working like collaboration, focus and events. This maximizes space efficiency while supporting evolving work patterns. ·     Open staircases and shared social zones drive spontaneous interaction, collaboration, creativity and a sense of community. ·     A great workplace integrates technology seamlessly from smart systems to digital collaboration tools, creating a cohesive experience for in-person and remote colleagues. ·     Measure engagement and satisfaction and make them the barometer of success.

CEO John Santora discusses WeWork’s revival, and its focus on real estate fundamentals, disciplined growth and delivering flexible, hospitality-driven office solutions worldwide. ·     WeWork has repositioned itself as a real estate-first company focusing on strategic locations, hospitality services and profitability.·     Demand for flexible office space is accelerating, with enterprise clients requiring scalable, adaptable solutions.·     Tech, finance and pharma are setting the pace for demand. ·     WeWork has begun training its staff using Ritz-Carlton’s hospitality standards.·     Today, WeWork utilizes revenue-sharing, management agreements and traditional lease models.

Two international experts—Pro-invest Group’s Sabine Schaffer and CBRE’s Stuart McCann—unpack the fundamentals and investment appeal behind co-living.Share these insights on co-living, which is attracting residents and capital, particularly in overseas markets: Co-living fills a market gap between hotels and multifamily, and is distinguished by resident tenure, product mix and community social environment.·     Co-living offers flexible, furnished units with strong appeal to working professionals and students.·     Co-living assets can be an attractive investment, delivering stable income and occupancy as high as 95%+.·     Conversions of offices and hotels can often be delivered more quickly and at lower costs than ground-up co-living development and produce better risk-adjusted returns.·     Private equity is flowing into co-living and more institutional core capital may target the sector as it matures.·     Urban affordability and demographic shifts are driving long-term demand, positioning co-living as a scalable residential solution.

 With a twist on the conventional lodging business model, Extended Stay America (ESA) has seen impressive growth in recent years. ESA CEO Greg Juceam discusses managing its real estate portfolio and provides insights on the business of long-term accommodations.Share these insights from this week’s episode: Investment Potential: The extended-stay lodging segment offers a resilient and growing opportunity, particularly in secondary and tertiary markets.Operational Simplicity: Extended-stay hotels can benefit from streamlined operations and less labor requirements.Scalability: ESA’s model combines ownership and franchising, enabling multiple avenues for growth and scalability.Diversified Demand: The diverse range of guest demand drivers -- from construction crews to long-term healthcare treatments to digital nomads -- tends to support stable occupancy rates.Strategic Expansion: ESA’s focus on new builds and strategic acquisitions positions it well for future growth, even in challenging capital markets.

Fifth Wall’s Brendan Wallace and CBRE’s Connor Hall explore innovation in commercial real estate, from flexible workspaces to AI-driven investment strategies.Share these insights on proptech investing: ·     Investing in PropTech, like all venture capital investments – is high risk and high reward. Investors typically underwrite 40%+ internal rates of return (IRRs), betting that a few transformative companies succeed and compensate for those that fail. ·     Investing in PropTech provides early access to innovations that enhance asset performance, reduce costs and create competitive differentiation. ·     Artificial intelligence is expected to improve underwriting, asset selection and risk modeling for real estate investors. Those that adopt AI-driven tools early may gain a significant edge. ·     The initial public offering (IPO) market has slowed, but standout exits like ServiceTitan show that public capital is still available for top-tier companies. Investors in private companies should be prepared for longer holding periods prior to exits. ·     The most investable PropTech companies are those that solve challenges for  real estate in operations, capital markets, risk management and elsewhere. Deep industry knowledge is key to identifying winners.

Leading construction and finance experts gathered at Turner & Townsend’s New York office to discuss the impact of tariffs, interest rates, new technology, labor availability and more on commercial construction. 1.    Uncertainty: The construction industry faces significant uncertainty due to volatile interest rates, higher tariffs and costs for materials and labor.2.    Contract Scrutiny: Detailed contract reviews, especially force majeure clauses, are crucial to manage risks.3.    Risk Mitigation: Strategies such as early material procurement, storing materials and increased contingencies in contractor agreements are essential to safeguard projects.4.    Labor Challenges: Rising costs and shrinking labor availability are critical factors affecting construction projects.5.    Affordable Housing: Despite market volatility, affordable housing projects continue due to the critical need for them and creative financing solutions.

Robinson Weeks Partners’ David Welch and CBRE’s Chris Riley discuss market opportunities and challenges in the industrial real estate sector. Chris will be leaving CBRE to join Robinson Weeks in a senior position effective June 1.Share these insights on industrial & logistics real estate: 1.     E-commerce helped the industrial sector grow, but a spate of development has created challenges.2.    Large-scale redevelopment projects, such as transforming former military bases, can yield substantial returns but require flexible planning, environmental cleanup and, often, partnership with the public sector.3.    Modern industrial buildings are designed with increased clear heights and advanced lighting to meet present and future occupier needs.4.    Highway and transportation access, utilities availability and environmental regulations are some of the critical factors in industrial site selection.5.    Staying informed about local regulations, zoning restrictions and community sentiments is vital for securing project entitlements.

In this bonus episode, CBRE's new Global Head of Research, Dr. Henry Chin, discusses the current outlook for commercial real estate for both occupiers and investors. Key Takeaways on the Economic and Real Estate Outlook ·     Market Sentiment: Real estate fundamentals don’t change overnight. Leasing activity is proceeding across asset classes though some occupiers are delaying decisions until they have more clarity on potential policy changes and their economic impact. ·      Economic Indicators: Monitoring not only job growth and inflation but also softer indicators like travel bookings and restaurant reservations provides a feel of the real economy. ·      Nimble Capital: High-net-worth individuals can move quickly to pounce on attractively priced opportunities.