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January 2, 2024

40 CRE Execs Tell Us How 2024 Will Play Out — And What They're Doing To Prepare

Join Donohoe Hospitality President Thomas Penny On Why Donohoe Chose Reston For Its Latest Hotel Project

Historians will not look back at 2023 as a happy year for commercial real estate.

But that was then and this is now. As the Bisnow newsroom learned in the waning hours of 2023, the industry is more than ready for 2024 — for the challenge of willing it to become a turning point year.

A common refrain has echoed throughout the industry these last few months: “Survive till ’25.”

What does it even mean? We wanted to find out, so we asked hundreds of real estate executives worldwide — from Paris, London, New York, Los Angeles, Dublin, Chicago, Houston and everywhere in between. We spoke to developers, investors, brokers, construction executives, affordable housing experts and data center power players.

We boiled the best responses down to 40 voices and granted these industry leaders anonymity to capture their unvarnished perspectives. Their responses span everything from being insulted by the question to deep concerns for an industry that is facing intense headwinds in some quarters.

It won’t be doom and gloom in 2024, they told us. As the following perspectives illustrate, chaos can be a ladder, and opportunities abound for anyone who carries wisdom from past economic dips.

So, how will you be pivoting your strategy in 2024 to survive till ‘25?

— Mark F. Bonner, Bisnow Editor-in-Chief

Read the full story here.

 
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Watergate Office Building Owner Delinquent On $73M CMBS Loan

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The same office space at the Watergate complex that played a role in the downfall of then-President Richard Nixon is contributing to worsening distress in the D.C. office market.  A $73M  CMBS loan tied to the 11-story Watergate Office Building at 2600 Virginia Ave. NW has fallen delinquent, according to…

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CRISPR Drug Highlights Fluid Connection Between Drug Approvals And Real Estate

CRISPR Drug Highlights Fluid Connection Between Drug Approvals And Real Estate  

For the biotech industry, 2023 ended with an exceptionally bright spot amid a difficult year. A CRISPR treatment for sickle cell anemia by Vertex, the first example of this technology getting Food and Drug Administration approval, showcased the potential for new technologies to bolster the industry. 

The Dec. 8 approval garnered headlines and excitement over the future of a new technology. What it didn’t immediately lead to was a vast expansion of Vertex’s real estate footprint or plans for new leases.

The established firm had already embarked on a significant expansion last year, with plans to open a 344K SF research and manufacturing facility in Boston’s Seaport, near its existing lab and research space, by 2025. When the door opens to the new facility, a $400M project with Related Beal, Vertex will take up 1.9M SF across five Boston sites.

“These buildings represent a further significant investment in our unique R&D strategy, to transform the lives of people with serious diseases, like sickle cell disease and Type 1 diabetes, using cutting-edge genetic and cell-based therapies,” CEO Jeffrey Leiden said in a statement last year.

The case of Vertex presents one of the most recent and high-profile examples of the often challenging-to-predict connection between milestones and approvals and lab real estate. The first clearly leads to the second, but companies and startups tend to differ around when they make these kinds of decisions. Often, biotech…

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Weekend Interview: CBRE's Thomas Nguyen On Being A Reality TV Contestant And The Future Of Restaurant Retail

Weekend Interview: CBRE's Thomas Nguyen On Being A Reality TV Contestant And The Future Of Restaurant Retail  

This series goes deep with some of the most compelling figures in commercial real estate: the deal-makers, the game-changers, the city-shapers and the larger-than-life personalities that keep CRE interesting.

Looking at Thomas Nguyen’s résumé, it might appear that commercial real estate is just another stop along his journey to becoming exorbitantly rich, famous or both. 

After all, he had a legitimate shot at winning over $4M when he was cast on Netflix’s Squid Game: The Challenge, was a co-founder of beloved Houston-based South African restaurant chain Peli Peli and briefly worked as a commercial litigator.

But that’s not the case at all, and not just because he didn’t win the reality show, Nguyen told Bisnow. Restaurant practice leader of CBRE’s Houston office is the most enjoyable job Nguyen has ever had, he said. 

“Now looking back at everything, I feel like I was always meant to be in this role,” Nguyen said. 

Nguyen joined CBRE in 2021 following the closure of the two remaining Peli Peli restaurants, the first of which opened in The Galleria more than a decade earlier. The well-known chain was featured on CNBC’s Restaurant Startup, and Eater Houston named Peli Peli Kitchen the best fast-casual restaurant of the year in 2017. 

“I wouldn't be in this role at CBRE without my experience as a restaurateur in Houston,” Nguyen said. 

In Nguyen’s time with CBRE, he has represented tenants with diverse and eccentric concepts, including Ojo de Agua, a Mexican health-focused fast-casual chain in Houston’s upscale River Oaks District; Drop Shots, an indoor pickleball court with plans to add a bar at Houston’s Farmers Market; and Chi’Lantro BBQ, an Austin-based Korean concept known for its kimchi fries in the Houston Heights. 

This interview has been edited for length and clarity.

Bisnow: You have a diverse résumé with experience including restaurant ownership and commercial litigation. How did you end up in commercial real estate?  Nguyen: After Covid, I wanted to figure out where I was going to finish my career. One of my mentors is a developer in…

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