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A tale of two office markets: Spencer Levy, CBRE Global Client Strategist & Senior Economic Advisor, highlights a stark contrast between struggling offices and prime assets in the latest podcast episode of From Where I Sit. According to Spencer, we will see more demolition at the challenged end of the office market. On the other hand, the world has never been better for top-tier office assets. Even in markets with oversupply, the best building in the best submarket thrives, as seen in NYC’s Hudson Yards and Midtown Manhattan, and even in international markets like Mexico City. Find out more from Spencer on From Where I Sit. Apple: https://apple.co/3Yby4x5 Spotify: https://spoti.fi/3YD8j96 #ICSC

Spencer Levy of CBRE podcast guest Key Take-aways: I've been seeing the "From Where I Sit with Tom McGee" ICSC podcast announcements in my inbox for months and have always been intrigued. This week I finally tuned in after seeing Spencer Levy, Global Client Strategist & Senior Economic Advisor, was a guest. I first met Spencer when he delivered a smart and in some ways comical keynote at ICSC@New England in Boston a few years back. His knowledge of commercial real estate trends and economics is truly impressive! Here are my 5 Key Take-aways: 🚧 Demolition Over Conversion: Levy made a compelling case that for many underperforming properties, demolition is often more viable than conversion. He mentioned the example of a 25-year-old Mandarin Oriental in Miami and even JPMorgan demolishing a building on Park Avenue in NYC. The permitting, timeline, and math often make demolition a better option. This makes sense to me but I do worry about environmental repercussions of these decisions. 📜 Permitting Continues to be the Real Challenge: "You don't need more money, you need more time" was one of Levy's comments. Knowing when you can "swing the hammer" is more valuable than additional capital in today's development landscape. I've heard this since the first day I started in the industry back in 2005 and still hear from clients today how permitting is such a huge challenge, so not surprising but still notable. 🙋♀️ The "Want to Be" vs "Need to Be" Shift: Post-pandemic, location selection has never been more important he said. People want properties and spaces they choose to be in, rather than those they're required to visit or work in. This shift is changing the approach to office and retail. 🌟 Building Resilience Pays: Forward-thinking developers are building three feet above flood plains and using superior materials. While these investments may not immediately pencil out, they're becoming critical as insurance concerns mount. 🤖 Data Center Demand Surging: With big tech firms taking entire buildings and constraints on water and electricity limiting new supply, Levy is "bullish" on investor demand for data centers - especially as AI and data analysis needs grow. What struck me most, from a CRE marketer's perspective was how, while he didn't explicitly discuss branding, his insights on property positioning and the importance of creating spaces where people "want to be" align with what we're seeing in our agency work - working with developers to create unique, fun, and vibrant environments that keep people coming back. For developers and owners this emphasizes why thoughtful positioning, branding, and placemaking are becoming as nearly as critical as traditional location factors. 🎙️ Full podcast here if you want to take a listen: Spotify: https://spoti.fi/3YD8j96 or Apple: https://apple.co/3Yby4x5 Did you listen in? What are your thoughts? ICSC, Tom McGee, CBRE #icsc #partnership #icscreator