1) Real Estate Firms Bullish on Hiring Concerns about global instability won’t stifle the pace of hiring for U.S. commercial real estate firms, according to a survey by executive search firm Ferguson Partners. Real estate executives expressed growing worries over a plethora of issues, including political instability at home and abroad, rising interest rates and a volatile stock market. But those concerns were superseded by confidence that commercial properties will continue to perform strongly and that more-conservative practices instituted since the market crash leave the sector better equipped to cope with any downturn. The upshot: The vast majority of the 400 executives responding to the survey — 93% — plan to continue hiring at an equal or greater pace next year. More than half (56%) plan to increase hiring, while 37% expect to continue hiring at the same rate as 2015. Just 7% foresaw a decrease. “What surprised me was the level of optimism, said William Ferguson, co-chief executive of Chicago-based FPL Advisory, the parent of Ferguson Partners, which he founded in 1989. “I was expecting people to at least slow down their activity.” The hiring will be concentrated in mid- and lower-level positions. Just 12% of the surveyed firms plan to make seniorlevel hires, down from 19% last year. By contrast, nearly half plan to fill middle-management positions, and two-fifths will add junior-level spots. That degree of hiring will present a challenge, given the scarcity of available talent. During the downturn, fewer people entered the sector, leaving a smaller pool of candidates to advance to mid-tier positions. So employers looking to round out their rosters will continue to face fierce competition next year. Demand is higher for asset managers (29%) than for investment specialists (23%). Ferguson said that reflects increased capital allocations for high-yield investments, which require a greater degree of asset management. He noted that trend is OCTOBER 21, 201 5 12 PLACEMENT AGEN TS 2 Allianz Buying Midtown NY Offi ces 2 Grosvenor Unit Closing US Platf orm 3 70%-Leased Chicago Offices for Sale 4 Sale-Leaseba ck With Upside Pitched 6 Real Estate Firm s Bullish on Hirin g 8 Prologis Near Sale, Lists 2nd Portfolio 8 Motorola Cam pus Offers Dual Play 10 High Value Seen for Seattle Offices 12 Rising Tide Lifts Placement Agents 16 Denver-Area Power Center Avail able 16 KC Complex Could Fetch $700 Million 16 Beacon Tees Up Denver Office Trophy 18 New Luxury Rentals Pitched in Tampa THE GRAPEVINE Principal Real Estat investment officer e Investors chief Rand month after 32 years y Mundt retired last Iowa, insurer. Mun with the Des Moines, dt’ split up. Senior man s duties have been aging directors Rod Vogel and Jay Davis equity real estate now oversee private investing, Kelly Rush charge of global real estate securities is in Todd Everett head , s commercial MBS and private debt. All and repo executive Pat Halte rt to Principal chief r. GE Real Estate veter joined Swiss inves an Ron Lamontagne tment manager Partn ers of direct real estat a managing director e Based in New York for the Americas. on acquisitions of , he primarily works U.S. properties acro asset classes, as well ss originations. Lam as debt and equity ontagne’s focus is Group this mon th as See GRAPEVINE on Back Page Carpenter to He ad Capital Markets at Cush man Staying in-house , Cushman & Wak efield has tapp r to head ed Last month, Cush up its capital-markets operationveteran office-sales broker in the Americas ment-sales rainmak man appeared poised to appo int Carpenter and . dling day-to-day er Rob Griffin as co-heads of the management and platform, with Carptop investrecruitment. But Griffin drummin talks with Griffi g up business and enter hann unexpectedly rival Newmark Grub overseeing collapsed, and he b. decamped for That raised spec ceed. Those ques ulation about how new chief exec tions have now utive Brett Whit been answered will be announce by Carpenter’s prome would prod today. He will report to Joseph Americas, and glob otion, which Stett al capit Carpenter ascended al-markets chief Carlo Bare inius, chief executive of the l di Sant’Albano. to the top year, a TPG cons ortium acquired spot after a whirlwind of merg DTZ and then quic er kly took over anot activity. Last her brokerage, See Noble Carpente Wave of Large Ho CUSHMAN on Page tel Listings Hit 17 s West Coast It’s shaping up to be Since Labor Day, a banner year for large hotel sales far the busiest part at least a dozen properties have on the West Coast. hit the block, mak in downtown San of the country. The offerings ing it by inclu from San Diego Francisco and Portland, Ore., alon de luxury boutique hotels to Sacr g with full-service The listings follo amento to suburban Seattle (see prop table on Page 15). erties its most-active year w a wave of sales that had alrea dy California, Oreg yet. Some $4.3 billion of large hote put the region on course for on which tracks trad and Washington, according to Real ls have traded hands so far in es of at least $25 2006. million. The annu Estate Alert’s Deal Database, al record is $4.5 billion, set in “The West Coas t has become num buyer. ber one for inve stor appetite,” said One of the latest one hotel offerings, the Hote l Monaco Portland , could set a new high-water CBRE Global Se t to Take Profi See WAVE on Page 15 t on LA Offices CBRE Global Inve three years ago and stors is marketing a Los Ang eles office tower upgraded. that it acquired The 709,000-squa re foot building, trict, could attra at 400 South Hop ct bids than the $235 milli of about $475/sf, or $337 milli e Street in the Financial Dis26-story property on price that CBRE Global paid on. That’s significantly higher from a partnership in of New York. between Tishman 2012, when it bought the Speyer and Blac kRock, both CBRE Global, a Los ital improvements, Angeles investment manager, has plowed $11 milli including upgrades ground-floor retai l space and a conf to the lobby and elevators, and on into capon improvements the eren to attract and retai ce center. The shop has also spen addition of 80% at acquisitio n tenants, lifting t $18 million n. It has the The property, whic listed the building with its brok occupancy rate to 89% from erag h was developed in 1982, was form e affiliate, CBRE. erly known as Mell on Bank See CBRE on Page 10 typically seen later in the real estate cycle. The survey, conducted annually by Ferguson since 2004, covered a wide range of firms, including REITs, investment managers, pension funds, developers, brokerages and commercial mortgage originators and servicers.  REAL ESTATE ALERT: October 21, 2015, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700