The Committee's real estate strategy: Here's what you need to know
2025-12-30_18-20 • 3m 29s
Frank Holland (Anchor)
00:00.200
Real
estate,
the
worst
performing
sector
this
year,
but
could
a
big
turnaround
be
in
the
works
for
2026.
Diana
Olik
takes
a
look
at
this
week's
property
play.
And
what
what
lies
ahead
for
commercial
real
estate,
Diana?
Diana Olick (Senior Real Estate Correspondent)
00:12.360
Well,
Frank,
CRE
leaders
are
slightly
less
optimistic
than
they
were
ahead
of
2025,
according
to
a
Deloitte
survey.
83%
of
respondents
said
they
expect
their
revenues
to
improve
by
the
end
of
2026,
that
compared
with
88%
last
year.
Fewer
respondents
said
they
plan
to
increase
Diana Olick (Senior Real Estate Correspondent)
00:28.400
spending.
68%
and
said,
they
anticipate
higher
expenses
in
2026.
All
right,
so
let's
drill
down
on
specific
sectors,
starting
with
office,
which
seems
to
have
bottomed.
Vacancy
rates
are
expected
to
drop
below
18%
as
more
tenants
return
to
the
market,
according
to
Colliers.
Diana Olick (Senior Real Estate Correspondent)
00:44.640
There
will
continue
to
be
a
flight
to
quality
as
class
A
buildings
in
many
markets
are
now
almost
fully
occupied.
Office
construction
is
also
at
its
lowest
level
in
over
three
decades,
that
according
to
Yardi.
Now,
in
multifamily,
rents
are
starting
to
ease
as
a
record
level
Diana Olick (Senior Real Estate Correspondent)
01:00.040
full
of
new
supply,
continues
to
make
its
way
through
the
pipeline.
Multifamily
has
led
investment
sales
volume
since
2015
and
there
are
no
signs
of
this
changing,
but
its
share
of
total
volume
is
expected
to
ease
somewhat
as
investors
allocate
more
capital
to
other
sectors
like
Diana Olick (Senior Real Estate Correspondent)
01:15.040
office,
data
centers
and
retail
according
to
Collier's.
And
speaking
of
data
centers,
which
we
all
love
so
much,
Deloitte
called
the
sector
a
clear,
bright
spot
in
the
US
commercial
real
estate
landscape.
It
pointed
to
nine
major
global
markets
where
100%
of
the
new
construction
Diana Olick (Senior Real Estate Correspondent)
01:30.800
pipeline
is
already
fully
pre-leased.
Data
centers
do
though
face
some
headwinds
in
financing,
grid
capacity,
zoning,
and
even
local
politics.
Now
for
the
outlook
on
many
more
sectors
including
property
technology,
that's
prop
tech.
Go
to
the
newsletter
cnbc.com/propertyplay.
Diana Olick (Senior Real Estate Correspondent)
01:48.360
It's
free
and
it's
fun,
Frank.
Frank Holland (Anchor)
01:50.880
Uh
it
is
it's
it's
great,
Diana.
I
mean,
these
stories
have
been
fantastic,
Diana.
All
of
it
with
this
week's
property
play.
Thank
you
very
much,
Diana.
All
right,
no
direct
commercial
real
estate
exposure
here
on
the
desk,
but
I'm
going
to
start
with
you.
A
REIT
that
you
own
Frank Holland (Anchor)
02:02.320
Invitation
Homes.
Just
your
take
on
real
estate
coming
up
in
the
new
year.
Josh Brown (CEO)
02:07.120
Yeah,
Invitation
Homes
is
uh
effectively
rental
single-family
homes.
It's
had
a
It's
had
a
disappointing
year
this
year.
The
whole
real
estate
sector
has
been
out
of
favor
and
with
good
reason.
I
don't
see
that
turning
around
anytime
soon.
These
are
total
return
plays
though.
Um
Josh Brown (CEO)
02:24.320
a
lot
of
the
return
that's
going
to
come
from
these
types
of
REITs
is
going
to
be
a
combination
of
what
the
share
price
does
along
with
the
dividend
income.
And
of
course,
when
I
own
these
things,
I
am
usually
setting
things
up
so
that
I
am
reinvesting
that
that
uh
distribution
Josh Brown (CEO)
02:41.040
income
uh
which
I
have
been
doing
on
invitation
home.
So,
um
the
lower
price
is
not
fun,
but
the
dividend
distribution
goes
higher
and
we
continue
to
buy.
Frank Holland (Anchor)
02:50.160
All
right,
Snap,
quick
word.
You
got
DR
Horton,
Pureplay
home
builder.
Uh
rates
Yeah
are
they're
kind
of
in
a
place
where
people
don't
really
want
to
move,
especially
if
you
have
a
mortgage
under
4%.
Your
view
on
real
estate
coming
up
next
Jason Snipe (Founder and Chief Investment Officer)
03:00.000
year
in
this
name.
Yeah,
so
I
mean
D.R.
Horton
is
is
roughly
positive
for
the
year.
It's
up
around
4%.
I
think
for
me
the
Listen,
their
cohort
is
the
first
time
home
buyer.
That's
That's
the
group
that
they
focus
on.
You
know,
buyer
incentives
had
definitely
hurt
margins.
I
Jason Snipe (Founder and Chief Investment Officer)
03:13.720
think
that's
a
story
here.
You
know,
affordability,
as
Josh
mentioned,
I
mean,
is
just
a
major
problem
with
um,
you
know,
these
types
of
names
and
until
we
can
kind
of
see
mortgage
rates
come
down
meaningfully,
we're
probably
not
going
to
see
some
real
movement
Frank Holland (Anchor)
03:26.200
there.
All
right.
D.R.
Horton,
pulling
back
about
a
half
a
percent
right
now.
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