The Weekly Take from CBRE Shake It Off: Office investing is coming back
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Dec 9, 2025 Brandon Shorenstein, CEO of Shorenstein Investment Advisors, and Patrick Gilday, Vice Chairman at CBRE, dive into the rebounding office market. They discuss the emerging focus on cash flow and downside protection, while noting cash-on-cash yields reaching 8%-15%. The duo highlights the importance of prime assets in vibrant submarkets and the challenges of property conversions. With an emphasis on tenant priorities like wellness and experiential amenities, they paint a hopeful picture for office spaces as essential investments going forward.
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Underwrite For Monthly Distributions
- Underwrite office deals for monthly distributable cash rather than relying solely on exit gains.
- Favor assets that yield current returns and offer downside protection if leasing stalls.
Family Roots Shaped A Long View
- Shorenstein's family began in San Francisco leasing and became large office landlords over decades.
- They raised their first fund in 1991 and have since raised 13 funds, grounding their return-to-office conviction.
Tenants Prioritize Experience And Wellness
- Occupiers now prioritize employee experience, wellness, and ESG when choosing space.
- Tenant fit-out preferences favor open, airy designs and amenity-rich buildings that attract people back.