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Risk and Resilience Strategies for CRE’s Uncertain Future

March 06, 2025

Thursday, March 6, 2025

On Tap Today

  • SWOT team: The new risks of the commercial real estate industry have created some interesting rewards as reported by two seasoned pros.

  • Mixed-use webinar: Join JLL and Kastle experts to explore data-driven strategies for boosting profits and tenant synergy. Sign up.

  • Connectivity webinar: Tips for optimizing your office with smart tech and seamless connectivity for a smooth return-to-work. Sign up.

Perspectives

Risk and Resilience Strategies for CRE’s Uncertain Future

The U.S. real estate sector is stepping into 2025 with a mix of cautious optimism and lingering uncertainty. While rising insurance rates and labor shortages have created obstacles in recent years, signs of stabilization are emerging. Property insurance costs, for example, may finally plateau or even decline in some cases, offering financial relief to owners and developers. Even still, there is still plenty of risk on the table, particularly in disaster-prone areas where insurers continue to tighten their underwriting practices. To navigate this evolving landscape, real estate leaders must take a proactive approach to risk management and resilience planning.

On the bright side, recent Federal Reserve interest rate cuts and a dip in the ten year treasury note could ease some of this strain of the upcoming “wall of maturities.” At the same time, new risks—ranging from litigation targeting property owners to increasing cybersecurity threats—are reshaping the industry's risk profile, making a comprehensive risk management strategy more important than ever.

With a changing workforce and shifting tenant demands, real estate operators must also rethink their approach to talent retention. Labor shortages in property management and maintenance roles are contributing to operational inefficiencies, impacting everything from security to tenant satisfaction. By prioritizing risk mitigation, financial strategy, and workforce stability, real estate owners can turn today’s challenges into opportunities for long-term resilience and growth.

Overheard

Top Headlines

Podcast

The State of the Office Market with Michael Mandel of CompStak

The office market is at a crossroads. While some cities have rebounded, others still struggle with vacancies. Michael Mandel, CEO of CompStak, breaks down key leasing trends, office valuations, and the flight to quality. Is a full recovery on the horizon, or has office demand changed forever?

LISTEN: https://propmodo.com/podcast/the-state-of-the-office-market-with-michael-mandel-of-compstak/

Webinars

Combining Residential and Commercial Spaces in Modern Developments

When executed effectively, mixed-use developments seamlessly integrate residential and commercial spaces, creating a highly sought-after asset class. Whether you're a developer shaping the next urban hotspot or a property owner optimizing asset value, this webinar offers essential insights into the evolving mixed-use real estate landscape.

REGISTER: https://propmodo.com/combining-residential-and-commercial-spaces-in-modern-developments/

Your Building's Tech Stack is Key to a Happy Return to Office

As companies return to the office, they are upgrading layouts, amenities, and technology to boost productivity and engagement. Optimized office tech is crucial, supporting seamless connectivity and smart systems. Without it, even well-designed spaces may lack the flexibility and convenience today’s workforce expects.

REGISTER: https://propmodo.com/your-buildings-tech-stack-is-key-to-a-happy-return-to-office/

Popular Articles

How Commercial Real Estate Operators are Using AI to Empower their Property Teams

Commercial real estate operators are embracing AI to streamline property operations management, automate tasks, and enhance tenant satisfaction. Platforms like Visitt use AI to identify maintenance issues, detect patterns, and improve efficiency—empowering property teams while keeping managers in control of critical decisions.

READ ONLINE: https://propmodo.com/how-commercial-real-estate-operators-are-using-ai-to-empower-their-property-teams/

The Future of Sustainable Buildings in the Era of DOGE

The Department of Government Efficiency (DOGE) is cutting federal sustainability funding, but real estate leaders remain committed to green building. Despite policy rollbacks, energy efficiency remains a smart investment, driven by cost savings, market demand, and advancing technology in AI, microgrids, and EV energy storage.

READ ONLINE: https://propmodo.com/the-future-of-sustainable-buildings-in-the-era-of-doge/

Perfecting the Phased Approach to Mixed-Use Development on a Reclaimed San Francisco Waterfront

San Francisco’s Mission Rock is transforming a former industrial site into a vibrant waterfront neighborhood. With housing, offices, retail, and parks, the multi-phase development prioritizes sustainability, flexible design, and economic resilience. Backed by major tenants like Visa, it’s poised to become a key urban destination.

READ ONLINE: https://propmodo.com/perfecting-the-phased-approach-to-mixed-use-development-on-a-reclaimed-san-francisco-waterfront/

How Mixed-Use Developments Are Connecting with Their Neighborhoods, Not Replacing Them

Station Yards in Ronkonkoma shows how thoughtfully designed mixed-use developments can integrate with, not replace, existing communities. Despite initial opposition and infrastructure hurdles, developer Tritec collaborated with local leaders, supported small businesses, and enhanced public spaces, ensuring synergy between old and new.

READ ONLINE: https://propmodo.com/how-mixed-use-developments-are-connecting-with-their-neighborhoods-not-replacing-them/

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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