Anthony Dilweg, veteran real estate investor and Founder & CEO and of Dilweg, joins Forward Guidance to share shocking information from the world of commercial real estate (CRE) in general and office in particular. Dilweg, whose firm owns over 5.5 million square feet of real estate, mostly located in the Southeast United States, argues the challenges CRE will contend with may be greater than those faced during the 2008 Great Financial Crisis (GFC). Dilweg’s base case is that office as an asset class is structurally broken as the trends of remote and hybrid work are here to stay. He expects over a billion square footage of U.S. office space will be rendered obsolete in the coming years. With all these challenges notwithstanding, Dilweg is optimistic that there will be great investment opportunities for well capitalized players who can take advantage of market distress. Filmed on November 29, 2023.
__
MetaMask Portfolio is your one-stop shop for all things web3. Instead of connecting to multiple exchanges, dapps, and tools, you just need to connect to one simple dapp to track and manage all your assets across different networks and accounts. MetaMask Portfolio provides a secure and convenient way to perform common tasks such as Buy, Sell, Swap, Bridge, and Stake. Try MetaMask Portfolio: https://metamask.io/portfolio/?utm_source=blockworks&utm_medium=podcast&...…]_Podcast_ForwardGuidance&utm_content=pDapp_podcast_FG_shownotes
__
About Dilweg: https://www.dilweg.com/
Follow Jack Farley on Twitter https://twitter.com/JackFarley96
Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance
Follow Blockworks on Twitter https://twitter.com/Blockworks_
__
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
Timestamps:
00:00 Introduction
01:19 Dilweg's Background in Football and Real Estate
04:54 Dilweg's Start In Real Estate: "Ready, Fire, Aim"
09:34 Office Is The Most Capital-Intensive Sector Of Real Estate
14:03 Interest Rate Surge Has Been A "Jolt To The System"
21:11 Office Is Structurally Broken Right Now
34:54 It's A Lot Worse Than The Headlines
43:52 Lease Term: Comparison To "Duration" In Bond World
44:55 Interest Rate Hedging In The Real Estate Business (Public REITs and Private Investors)
45:38 Are Office Rents Going Down?
51:09 Dilweg's Forward Outlook On Returns
53:56 A Lot Of Properties Will Go Back To Banks
01:09:38 Dilweg's Outlook on Commercial Real Estate (CRE) Other Than Offices
01:15:29 The Rise Of Experiential Hospitality
01:18:28 WeWork & Adam Neumann
01:23:31 Dilweg's View on Office Markets In Big U.S. Metropolitan Cities
01:29:54 The Work-From-Home Debate
01:46:46 The Rise of Private Credit
No Comments