May Event 2023 Caspian Q&A Panel: 

State of the Commercial Real Estate Industry

On May 18th  2023, the Caspian Group hosted a Q&A panel to discuss the state of the commercial real estate industry. The panel was moderated by MC Kathy Bodnar, Director at Caspian Group. The panel included Patrick Corbett, the CEO of Caspian, Marshall Nguyen, Senior Vice President, retail industry expert Jamal Mawas, Caspian Group Associate, and Angie Frandrup, Director and LEED AD.

The panel began with a discussion on the overall health of the commercial real estate market, which has been a topic of concern for many in the industry. Patrick Corbett stated that the market is currently volatile, and while it is healthy in some areas, it is unhealthy in others. He noted that the market is very product-specific or building-type specific at the moment and that there is a lot of uncertainty in the industry due to rising interest rates and the need for investors to look at alternative investment opportunities. However, despite the challenges, Patrick also noted that small businesses are still in need of spaces, and that there is still traction with smaller tenants and smaller space opportunities. This statement was echoed by a Professional Loan Specialist from the audience, who added that the fundamentals of commercial real estate are good, as market rents and occupancy rates are up. They also voiced the opinion that the best line of business to be in right now is industrial, followed by apartments, hospitality, and then retail.

The panelists then discussed the unique challenges faced by the local market, which they agreed is in need of creative and flexible solutions to navigate the uncertain times ahead. Jay and Marshall noted that the building will only do great if it gets filled up with great tenants and vice versa. They emphasized that landlords need to be more lenient and bring in tenants, and that they need to be willing to negotiate and welcome new businesses without being so hard on what they want. They also noted that there are different types of retail classes where one can be creative and get A-class and B-class locations at good prices.

Angie added that public and private partnerships are needed to get the work done in the market. She noted that it will take the city and private companies to bring their employees back to the office for the retail in the area to be revived. She also stated that there is a need for creative financing, and that there are different ways to look at financing creatively.

The discussion then shifted to the state of the industrial market, which Patrick noted is still healthy overall. He also mentioned that the order of return and the health of the product types align with Angie’s first comments on the first question

The conversation shifted to the state of the hotel industry, and the panelists discussed the unique challenges faced by the industry. Panelists noted that the industry is still currently experiencing a slowdown due to the pandemic and the need for social distancing. It was also noted that there is a need for creative solutions to attract customers and increase occupancy rates.

Jay and Marshall added that there is still a need for hotels despite the challenges, and that there are opportunities for growth and success in the industry. They noted that hotels need to be creative and flexible in their approach to attracting customers, and that they need to be willing to offer discounts and other incentives to attract business.

The panel then turned to the topic of creative financing solutions for the commercial real estate industry. Angie noted that there are many different ways to finance projects, and that it is important to be creative and flexible in finding the right financing solutions for each project. She emphasized the importance of public and private partnerships, and noted that there are many different financing options available, including crowdfunding and pace financing.

The panelists also discussed the importance of data and technology in the commercial real estate industry. They noted that there is a need for better data and analytics tools to help investors and developers make better decisions. They also noted that technology can help to streamline many of the processes involved in the commercial real estate industry, such as due diligence and property management.

Overall, the panel provided a comprehensive overview of the state of the commercial real estate industry in 2023. While there are challenges, there are also opportunities for growth and success. The industry will need to be creative and flexible to navigate the uncertain times ahead. By leveraging the right financing solutions and technology tools, and by working together to find new and innovative solutions, the industry can continue to thrive and grow in the years ahead.

What questions do you have in regard to the commercial real estate industry, investing, and your own portfolio? 

Caspian Group would love to hear from you! 

Please contact us for more details at info@caspianrealty.com and stay tuned for our next networking event!