Member Testimonials
Panelists’ Previous Episode Links with Bios
Show Notes
- John Coe welcomes attendees and introduces the session agenda, highlighting member briefings and a panel discussion. (5:00)
- Kevin Dean’s Journey (00:05:30)
- Kevin shares his experiences in the real estate community and the value of peer relationships and learning opportunities.
- Access and Collaboration (00:07:30)
- Colin Thomas emphasizes the importance of access to peers and collaborative problem-solving within the real estate community.
- Panel Discussion Introduction (00:09:30)
- John introduces the panel discussion topics: the 2025 real estate market forecast and advice for young professionals.
- 2025 Real Estate Market Trends (00:10:30)
- Bob Murphy and Lacy Rice discuss anticipated trends in the DC real estate market, focusing on office space and demographic changes.
- Demographics and Employment Challenges (00:11:15)
- Lacy discusses how demographics and employment trends will impact the DC real estate market moving forward.
- Multifamily Sector Insights (00:13:30)
- Toby Bozzuto shares insights on the multifamily sector and the impact of capital flow on acquisitions and developments.
- Baby Boomer Retirement Trends (00:15:50)
- Vicki Davis discusses the implications of baby boomers retiring and their effect on the housing market and demographics.
- Home Ownership Trends (00:17:50)
- Vicki explores trends in home ownership, noting a shift towards suburban living over urban buying.
- Retail Market Dynamics (00:18:20)
- Henry Fonvielle discusses the strength of suburban shopping centers and the challenges facing urban retail environments in DC.
- Suburban Retail Challenges (00:20:40)
- Henry discusses the impact of high construction costs and interest rates on suburban retail development.
- Retail Market Dynamics (00:21:00)
- Henry discusses current rents, prices and the challenges in leasing up new retail spaces.
- Updating Retail Shopping Centers (00:21:30)
- The need for improvements in outdated retail centers to attract tenants and customers.
- Investment in Shopping Centers (00:22:00)
- Insights on high net worth individuals buying retail properties with cash, impacting market competition.
- Risks in Retail Development (00:22:45)
- Henry goes on to express concerns over high rents and interest rates affecting new retail developments.
- Big Box Retail Trends (00:23:10)
- Analysis of the changing dynamics in big box retail rents and tenant demands.
- Gallery Place Investment Insights (00:23:55)
- Bob Murphy discusses past investments and the challenges faced during the pandemic in the Gallery Place area.
- Commercial Real Estate Opportunities (00:25:00)
- Bob discusses current risks and opportunities for commercial real estate professionals amidst market changes.
- Construction Cost Concerns (00:26:15)
- Lacy cites rising construction costs and their long-term impact on profitability in real estate.
- Market Opportunities Amidst Fear (00:27:30)
- Lacy encourages young audience members to view current market fears as opportunities for investment and growth.
- Housing Policy and Affordability (00:28:30)
- Bob discusses the ineffectiveness of current housing policies in increasing affordable housing availability.
- Historical Context of Market Changes (00:29:00)
- Bob and Lacy reflect on past market changes and the importance of long-term investment strategies.
- Food Deserts and Grocery Store Challenges (00:30:10)
- Bob introduces and Henry expands on the struggles of grocery stores in food deserts and their impact on local communities.
- Urban Development and Investment (00:33:55)
- Vicki shares insights into challenges faced in urban development projects, including financing and government restrictions.
- The Shift in City Values (00:34:30)
- Vicki discusses the liberal shift in the city affecting law enforcement and public safety.
- Challenges in Real Estate Development (00:36:15)
- Insight into the challenges faced in affordable housing production and economic conditions.
- Impact of 2008 Housing Market (00:36:45)
- Reflection on the 2008 market crash and its lasting effects on construction prices.
- Current Construction Costs (00:38:00)
- Overview of high construction costs and risks in the current real estate market.
- Opportunities Amidst Challenges (00:38:45)
- Toby emphasizes finding opportunities in a challenging market environment and the potential for growth.
- Future Rent Trends (00:42:15)
- Toby predicts mammoth rent growth due to low supply and high demand in the market.
- Workforce Housing Needs (00:44:05)
- Vicki discusses the need for affordable workforce housing amidst rising costs.
- Urban Living Preferences (00:45:00)
- Vicki surveys the audience on the lifestyle preferences of residents, emphasizing the desire for amenities and community.
- Market Performance Insights (00:46:40)
- Bob and Henry discuss specific property types and submarkets expected to outperform in the current climate.
- Economic Cycles and Opportunities (00:47:45)
- Lacy reflects on historical economic cycles and the current opportunities for young professionals in real estate.
- Real Estate Opportunities in Office Space (00:50:20)
- Bob discusses potential in office spaces and multifamily developments.
- Advice for Young Investors (00:51:20)
- Bob and Vicki discuss strategies for starting small in real estate with friends and leveraging existing assets.
- Navigating Remote Work Challenges (00:53:55)
- Bob discusses the importance of in-person collaboration and maintaining workplace culture amid remote work.
- Building Credibility in Real Estate (00:55:30)
- Bob talks about the significance of personal credibility and integrity in real estate dealings.
- The Power of Networking (00:56:40)
- Toby and Lacy emphasize the importance of being present and building connections within the industry.
- Advice for New Real Estate Professionals (01:00:15)
- Vicki advises having a career plan and the importance of relationships in real estate.
- Building Professional Relationships (01:04:20)
- Toby discusses supporting employees’ growth and the ripple effect of their success on the community.
- Networking for Mentorship (01:05:40)
- Henry shares advice on building professional networks and the importance of seizing opportunities in charitable events.
- Taking Risks in Career Development (01:07:20)
- Henry emphasizes taking risks and making connections to enhance career opportunities in real estate.
- The Role of Technology in Real Estate (01:12:15)
- Lacy discusses how technology and data analytics are transforming the real estate industry and improving efficiency.
- Opportunities in Private Credit (01:17:00)
- Lacy discusses on the rise of private credit in real estate and its implications for the industry dynamics.
- Challenges with CMBS Special Servicers (01:18:20)
- Henry and Lacy share insights into the problematic relationship with CMBS special servicers and their incentives during defaults.
- Real Estate Challenges and Opportunities (01:20:30)
- Lacy discusses how troubled assets in real estate may sit idle and present opportunities for renovation.
- Future Market Predictions (01:20:45)
- Speculation about the potential for real estate opportunities in the next 5 to 10 years.
- Community Acknowledgments (01:21:20)
- Lacy praises John’s efforts in building relationships and sharing knowledge within the real estate community.
- Podcast Evolution (01:22:25)
- John shares the inspiration behind starting the Icons of DC Area Real Estate podcast and its growth over time.
- Community Engagement (01:23:40)
- John encourages feedback from attendees to improve community initiatives and programs.
- Discussion on BXP Deal (01:25:40)
- Henry Fonvielle raises questions about the implications of tearing down a building for new development.
- Changing Office Space Dynamics (01:26:30)
- Panelists discuss the evolution of office space needs and the potential for redevelopment.
- Opportunities in Class A Office Space (01:26:45)
- Insights on how top-tier office spaces are performing well despite economic challenges.
- Future of Downtown Buildings (01:27:30)
- Discussion on potential demolition and redevelopment of underperforming buildings in downtown areas.
- Challenges of Building Repurposing (01:31:30)
- Panelists share experiences and challenges in converting office buildings to residential spaces.
- Market Dynamics and Government Influence (01:33:30)
- Discussion on the impact of government actions on real estate market dynamics and occupancy rates.
- Future of Fannie and Freddie (01:36:15)
- Conversation about the potential privatization of Fannie Mae and Freddie Mac and its implications.
- Understanding Capital Markets (01:36:45)
- Discussion on the implications for capital markets and the real estate industry.
- Office Building Conversions (01:37:10)
- Insights on the challenges and decisions in converting office buildings to other uses.
- Finding the Right Contractor (01:38:30)
- Importance of selecting a suitable contractor for successful renovation projects.
- Affordable Senior Housing (01:39:30)
- Overview of the market for affordable senior housing and its unique challenges.
- Senior Housing Market Dynamics (01:40:00)
- Discussion on the resistance of seniors to downsize and the complexities involved.
- Demographic Trends in Housing (01:42:30)
- Analysis of how aging baby boomers and millennials impact housing demand.
- Creating Experiences for Seniors (01:44:10)
- Emphasis on the importance of experiences and community for senior living.
- Engagement in Senior Living (01:44:30)
- The social aspects of living in senior communities and their benefits.
- Challenges in Senior Relocation (01:45:10)
- Reflections on the difficulties in encouraging seniors to make lifestyle changes.
Gratitude for Event
Thank you to Ron Gart of Seyfarth Shaw for arranging to host this event and for participating in the Iconic Journey in CRE Board.
Iconic Journey in CRE
The Iconic Journey in CRE is a nonprofit organization that promotes learning and connections for young commercial real estate professionals through the Icons in DC Area Real Estate podcast, the Iconic Journey in CRE community, and Career Coaching Curriculum led by its Board and funded by its Sponsors and membership dues. If you are interested in learning more about the community or sponsorship, please reach out to John Coe at john@coeenterprises.com.
Insightful Quotes:
Bob Murphy: “You know, and so which means a couple things. Credibility. First of all, you gotta be good at what you do and you got to be honest. And, you know, you and you got to be, you know, you know, never hide. So for me, I’m always, you know, I put my partner and the deal first. Me and my firm second.”
Lacy Rice: Construction with the construction costs of the last 40 years. When they make these quantum moves up, they don’t come back down. They sort of stay level. And there’s a decent amount of margin in construction costs. So what you’re seeing now, with the handful of starts that we’re starting to see across the country, is contractors are operating effectively a 0% margin so that they can keep their subs employed and keep their people in business because they know in 12 to 24 months it’s going to change, and they want to be on the front end of it.
Vicki Davis: So. I ask everybody who comes to interview with us. So what’s your five year plan? Where would you like to be? Where are you going? What’s your ambition? How are you going to get there? And? And it’s shocking how many people don’t have a plan. Well, I’ve never really thought about that. Like, what the hell, man? So first, figure out what you love, what you’re good at.
Toby Bozzuto: You know how quilts have squares of different, different, different textures, etc. and they’re all sort of sewn together. Well, think of everything you do. Like this morning is a square. And then go to your office today. That’s another square. And sometimes I say, I have no idea what the hell that event was all about for a fundraiser. It’s boring or something. But you were there, and something may have happened. And eventually you’ll look around, you’ll. You’ll turn around and they’ll all be knit together.
Henry Fonvielle: This is an interesting story. When I went to. I’ve now been at Rappaport for 20 years. The people that when I left, I thought were not my buddies. They’re the people who called me up and gave me business. You know, you don’t know who’s going to be your best mentor or source of business in the future. Love, everybody. It’s easy. Smiles free you know. And I think when you smile, it gives you personal enjoyment too.
