Bryan Koop is a distinguished expert in capital markets, currently representing CBRE, a global leader in commercial real estate services and investments. With a robust background spanning roles at Deutsche Bank and JP Morgan, his expertise lies in commercial real estate finance, particularly in multifamily, industrial, office, and retail sectors. As the industry faces unprecedented challenges due to high interest rates and evolving market dynamics, Bryan highlights the current trends and shifts in capital allocation, noting a significant movement away from urban cores to more suburban locations for certain projects, particularly in the multifamily sector. The conversation unveils the crucial metrics and hurdles that define economic viability in commercial real estate projects, such as untrended return on cost and investment return thresholds. 

Key Takeaways:

• Suburban Shift: Investors are increasingly favoring suburban locations over urban cores for multifamily projects due to better cost basis and strong renter demand, despite challenges in suburban office markets.
• Economic Viability Metrics: Understanding untrended return on cost and levered IRR is essential for developers to ensure projects meet investor expectations.
• Capital Market Dynamics: The capital stack for commercial real estate deals is shifting with current market conditions, affecting when and how LP equity engages in projects.
• Role of Relationships: Building strong relationships and being a lifelong learner are key to navigating and succeeding in the real estate and finance industries.
• Future of Real Estate: Advances in technology and AI present promising new revenue streams and operational efficiencies for commercial real estate.

Notable Quotes:

1. "Tell me why we should do a deal and we can talk about the risks and mitigate the risks associated with it, but tell me why we need to do this deal." — Bryan Koop
2. "For multifamily, it's definitely a more interest in the projects that are more viable today than the urban ones." — Bryan Koop
3. "The value of these buildings can be very different than what is today just by efficiencies that are untapped by technology." — Bryan Koop
4. "The entrepreneurial component of capital markets brokerage always enticed me. You're building your own business." — Bryan Koop
5. "Invest in some relationships that make it. It'll change your life. People, things you read, and the people you meet." — Bryan Koop

Resources:

• CBRE Capital Markets - Explore more about the services provided by CBRE at CBRE.
• Book Recommendation: "Margin of Sa

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