Jonathan Goldstein on Strong CRE Demand in Miami & NYC, Luxury Hospitality

Commercial Real Estate Trends

• 📈 Cain International has observed a strong return to office, evidenced by their fully leased 830 Brickell development in Miami.
• 🏙️ In New York City, their office building on 57th Street is over half leased and nearing TCO, indicating significant demand for prime office space.
• 💡 The demand is driven by a desire for best-in-class offices with excellent light, amenities, and views, particularly for new developments.
• ⚠️ Older, second-hand real estate is struggling, while new, high-quality properties are experiencing strong leasing.

Cain's Strategy and Focus

• 🎯 Cain's strategy is to build 'the best of the best' in prime cities like Miami and New York.
• 🌍 While demand exists in secondary cities, the pool of such opportunities is limited, reinforcing their focus on top-tier markets.
• 🔑 This focus extends across hospitality, residential, and office sectors, emphasizing luxury and high-end properties.

Luxury Hospitality Investments

• 💰 A significant transfer of wealth between generations is fueling expenditure in the luxury market, with young people aged 30-40 being key spenders.
• 🏨 Cain is heavily invested in luxury hospitality, including partnerships with Aman hotels and the reimagining of the Delano Hotel in Miami Beach.
• 🌟 The Beverly Hilton reinvigoration is a massive project, exceeding $5 billion, and is one of the largest in North America.
• 🔑 Demand in luxury residential is driven by desires for privacy, wellness, safety, and security, coupled with top-tier facilities and amenities.