CLI Newsletter Jan.2025
INVESTMENT INSIGHT
Key Trends Shaping Commercial Real Estate in 2025
Article Source: www.cbre.com
CBRE’s 2025 US Real Estate Market Outlook paints an optimistic yet cautious picture of CRE’s recovery. Economic resilience, supported by robust consumer spending and corporate confidence, is setting the stage for a new growth cycle.
Strong demand for multifamily and industrial properties is leading the recovery, while the office sector is now stabilizing after years of high vacancies. Retail markets are buoyed by low availability and steady demand, particularly in suburban and Sun Belt areas.
Technology and sustainability are driving significant transformation, with data centers experiencing a surge in demand thanks to AI and cloud computing advancements.
However, power availability and construction delays remain challenges. Across the board, CRE stakeholders are focusing on energy efficiency and renewable power solutions to meet evolving regulations and consumer expectations.
KEY TAKEAWAYS
Economic Growth and Resilience: The US economy is set for moderate growth in 2025, driven by consumer spending, easing inflation, and improved corporate confidence. Interest rates are expected to drop but remain above pre-pandemic levels.
CRE Recovery Across Sectors: All real estate sectors are entering a new cycle. Multifamily and industrial properties continue to thrive, while offices show early signs of stability. Retail remains strong, with low vacancies and growing demand for prime locations.
Tech and Sustainability Priorities: Due to AI and cloud computing, data centers are booming despite challenges in power availability. Sustainability remains critical across sectors, with rising investments in energy efficiency and renewable power solutions.
Challenges and Risks: Geopolitical tensions, high budget deficits, and labor shortages pose risks to the CRE recovery. Shifting trade and immigration policies could also impact growth.
PROJECT UPDATE
Welcome to the latest update on the
Wolf Creek Farm BTR project!
Investor Update –December 2024
Construction: construction to date has continued on to ahead of schedule with the following milestones either complete or in progress:
Project Photo
EB5 INVESTMENT OPPORTUNITY
The Group 89 Project:
Hillwood City Creek Build-to-Suit (BTS)
Thornton, Colorado
A Logistics Facility located within a Qualified Targeted Employment Area (TEA)
The Hillwood City Creek BTS Project will consist of the development and construction of an approximately 529,000 square foot built-to-suit freezer/cooler distribution facility intended for a confidential Minneapolis-based Fortune 500 retailer (“Tenant” or “the Tenant”). The facility will be constructed on approximately 96-acres of land and will be part of the 5820 Logistics Park development in Thornton, Colorado. To complete the Project, Hillwood will be working with consultant Stream Realty Partners, who will be providing marketing and leasing services. The Project site is located in the thriving North Denver Logistics Submarket and will be well-positioned with direct access to the I-25 and E-470 ground transportation corridors.
The land is currently owned fee simple, and Hillwood has entered into a confidential Lease to Purchase Agreement (“Agreement”) for the facility with an affiliate of the Tenant. Per terms of the Agreement, the Tenant has entered into a 240-month lease agreement for the facility. The lease term commences upon construction completion and/or the Tenant’s occupancy of the premises. The Agreement also outlines the terms of the sale of the facility and obligates the Tenant to complete the purchase of the facility.
EB-5 Attributes
• Total Loan: Up to $79,200,000
• Total Project Spending: $259,957,764
• Estimated EB-5 Qualified Jobs from Development & Construction: 1,750
• 76.8% Job creation buffer
Project Timeline
Development began in Q3 2023.
Completion of the Project is anticipated for Q1 2025.
