A long-term approach to investment
Cecilia Fasth talks about the importance of a long-term investment approach. She focuses on future-proofing existing properties and developing new ones with a growing demand for achieving objectives within sustainability. She also highlights the need to address issues such as societal instability through community engagement, and tackling utility costs using tech advancements such as AI for energy management.
Murphy McCullough points out the rising demand for Class A+ buildings with strong sustainability credentials, noting a clear split in the market between high-quality, innovative properties in top locations and others that lack amenities and sustainability features.
Both experts agree that a future focus is key for long-term profitability. Properties that fit into this category attract more tenants, lease up faster, and offer better financing options, especially in Europe. While there is no formal taxonomy in the US like there is in Europe, buildings that are developed with a long-term approach are crucial for attracting investment and maintaining value.
Quality matters for investors
The episode also highlights a trend towards “flight to quality,” where investors prefer high-quality properties. And while demand for this category is expected to continue growing, top-tier offices are in short supply. Cecilia Fasth shares insights from Stena Property’s recent acquisition of a commercial complex in Warsaw from Skanska, emphasizing the importance of location, innovation and economic growth in investment decisions. Murphy McCullough discusses a successful lease in Bellevue, near Seattle, showing how sustainable solutions attract tenants.
Conclusion
The episode underscores the importance of balancing profitability and future-focused solutions in real estate investment. Our guests provide valuable insights into navigating current challenges and capitalizing on emerging opportunities.
For more details and expert insights, tune in, listen and subscribe to the podcast on Spotify, Apple Podcasts and YouTube.