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On The Market

230: Post-Pandemic Demand Boomerangs Back to Cities, What Should Investors Do? w/Richard Barkham

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 1 July 2024

⏱️ 32 minutes

🧾️ Download transcript

Summary

“Super cities” are seeing a massive comeback in demand—one that most investors thought was impossible. With work-from-home being scaled back by many major companies, returning to downtown is a no-brainer for high-paid employees. With more amenities than the suburbs, younger workers are being enticed back into the office. And who’s winning with all this boomeranging demand? You guessed it—office investors. We brought CBRE’s Richard Barkham back to give us the latest update on how cities and office investors are faring. Office investing has been heavily criticized over the past few years as vacancies exploded and tenant turnover became increasingly common. Office space was an easy target as remote work became the new norm. However, trends change, and Richard sees a massive investing opportunity in certain office space sectors. But which cities are worth investing in and around? What type of office investments are faring the best? And will we continue to see downtown demand rebound? We’ll get into it all in this episode of On the Market. Plus, stick around to hear Richard’s predictions on interest rate cuts, whether or not we’ll achieve a “soft landing,” and what investors must be looking at NOW to make significant gains over the next few years. In This Episode We Cover The cities seeing the biggest influx in demand and why Americans are moving back to downtown Why the “doom loop” scenario never came true, even though so many forecasters predicted it The one type of office investing that could see a massive surge in demand over the next two years Richard’s “number one investment strategy” of 2024-2025 that investors MUST look into How residential real estate investors can take advantage of the rising demand for downtown housing And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Property Manager Finder Hear Our Past Episodes with Richard: On the Market 141 - The “Doom Loop” That Could Crash Commercial Real Estate On the Market 179 - A “Year of Opportunity” to Come for Multifamily, Says CBRE’s Richard Barkham Read CBRE’s Latest Reports: Analysis of US Prime Office Buildings Shaping Tomorrow’s Cities Jump to topic: (00:00) Intro (01:24) Cities See Returning Demand  (05:41) The "Doom Loop" Scenario  (07:16) Offices Are Filling Up Fast (11:24) #1 Investment Nobody is Thinking About (15:37) Investing In and Around Cities  (22:31) Rate Cuts and Economic Predictions  (26:06) Investors MUST Do This Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-230 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

What is the fate of U.S. cities and their surrounding metro areas after the pandemic and the rise of remote work?

0:08.8

Are we going to see the continuation of recent trends where people are moving to the suburbs?

0:13.2

Or will we see revitalization?

0:16.1

And can we expect more renters to move in, rent growth?

0:19.6

Today, we're going to dig into what's going on in America's

0:22.4

post-pandemic.

0:28.8

Hey, everyone, it's Dave and welcome back to the On the Market podcast.

0:32.6

Today, we're talking to a fan favorite guest, friend of the pod, Richard Barkham. He is the global chief

0:40.0

economist at CBRE. If you don't know them, they are a huge commercial real estate firm.

0:45.2

And we're bringing on Richard today to discuss the revitalization of cities post-pandemic.

0:50.5

He and his team have done a lot of original research about recent trends.

0:54.3

And let me just give you a little bit of a background.

0:56.3

But for most of the last 20, 30 years, most of the growth in real estate has come in cities.

1:01.9

But then that sort of reversed during the pandemic.

1:04.3

And suburbs and even rural areas started to grow faster.

1:08.5

And Richard's team wanted to figure out, is that going to continue or is it going to change?

1:13.5

So that's what we're bringing on Richard for.

1:15.6

We're also going to talk about the macroeconomic environment, inflation, rates cuts, general

1:20.2

news.

1:20.8

So that's the plan.

1:21.5

We're getting into everything today.

1:23.4

Let's bring on Richard.

...

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