A sense of guarded optimism—and a call for resilience—filled the room at this year’s GlobeSt. Women of Influence conference in Denver, where some of the most prominent women in commercial real estate gathered to confront the sector’s most pressing challenges and emerging trends.
On the State of the Industry panel, Julie Baird, President of First American Exchange Company, opened the discussion with a realistic assessment of where the market stands. According to Baird, “We are at the start of a recovery, but it will be slow.” She didn’t shy away from the hurdles ahead, highlighting rising debt and retail delinquencies. Still, she noted that although new supply is abundant in the multifamily and industrial sectors, the pre-pandemic demand drivers are still present, preventing a steeper decline.
Turning to the uncertain future of office properties, Jessica Miller, Founder and CEO of Rock Spring Real Estate Solutions, offered her own tempered optimism. “Some markets are doing better than others,” Miller said during the conference, describing how office assets are frequently selling for pennies on the dollar and noting that family offices have become the dominant buyers. However, she also pointed out an encouraging trend: conversions of obsolete spaces are finally gaining traction, especially as many outdated B and C class buildings no longer make economic sense to hold.
Miller emphasized a wider shift unfolding across the industry—a definitive move toward premium assets. “There’s a real flight from commodity to premium,” she observed, adding that the latest office designs are being created with features like neurodiversity in mind. “Offices were never really built for the people using them. That’s changing—and it needs to.”
The theme of purposeful design and shifting resident expectations continued with Virginia Love, Industry Principal at Entrata, who focused on the multifamily sector’s response to evolving cultural trends. “Smart operators are morphing with the market,” Love explained at the event, citing the rising popularity of podcast rooms, wellness spaces, and pet-friendly amenities. Today’s residents, she said, want spaces that enable them to create, relax, and thrive.
Love also underscored the growing influence of Gen Z, not only as renters but also as associates and future leaders in the multifamily space. Their heightened awareness of mental health and rapid adaptation to technology are expected to drive significant transformation within the industry.
The conference also shed light on the nation’s struggle to provide adequate and affordable housing. Maria Barry, National Executive for Community Development Banking at Bank of America, clarified what truly constitutes “affordable”—housing that costs no more than 30% of a person’s income. The harsh reality, she said, is that making permanent loans small enough to result in affordable rents is a stubborn challenge. “Only six markets in the country will produce more than 2,000 housing units this year,” Barry reported, pointing out that even this is insufficient. She stressed that building affordable communities “takes a village—and a lot more time than people think.”
Delays and bottlenecks across the construction pipeline are exacerbated by rising costs, labor shortages, and shifting immigration policies, according to other panelists. “It’s taking forever just to get documents signed,” one lamented, highlighting how red tape is straining progress.
Debt remains another looming cloud over the sector. Julie Baird warned, “About 40% of 2024’s debt has been rolled over into 2025,” a statistic that illustrates the ongoing pressure many firms face. Still, she pointed to a bright spot: a 70% increase in reverse exchange volume, and more investors looking to 1031 exchanges as a way to manage costs amid the uncertainty.
Regulatory and environmental challenges were also front and center. The so-called “Big Beautiful Bill” in Washington could bring much-needed tax incentives to the commercial real estate sector. Still, its fate is bound to the unpredictable tides of federal policy. “’Buckle up’ is the correct phrase when we’re talking about government,” one speaker quipped, capturing the trepidation many feel.
The consequences of climate change weighed heavily on the discussion. As disasters increase in frequency and severity, rebuilding efforts are stymied by complicated state and federal requirements. “We’re not done with natural disasters,” a panelist warned. “And rebuilding isn’t as simple as it sounds.”
Yet, despite these formidable obstacles, the conference ended on a note of hope. Virginia Love voiced her excitement about the role Gen Z will play as the next wave of industry leaders. “They’re everywhere,” she said. “They’re smart, socially aware, and incredibly tech-savvy. Watching them enter and reshape this space is going to be one of the most exciting transitions we’ve seen.”
Check back here for ongoing coverage of the event.
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