??????????'?? ????????????-????-???????????? ??????????????: ?????????????????? ?????? ???????????? ???? ????'?? ???????????? ???????????? In one of his first official acts, President Trump has signed an executive order mandating all federal workers return to the office full-time. This directive affects all agencies under the executive branch, requiring a swift termination of remote work arrangements. At first blush, this appears to be positive for the DC office market, as Federal agencies occupy a substantial portion of office space in the region. But not so fast. While the return to the office is a positive step for boosting physical occupancy, the significant underutilization of existing office space suggests that the overall impact may be more modest than anticipated. A 2024 report by the Public Buildings Reform Board highlighted that several major federal headquarters in the city are operating at minimal capacity. For instance, the U.S. Department of Housing and Urban Development's headquarters, with a capacity for over 4,000 employees, had an average daily attendance of just 441, equating to an 11% occupancy rate. Similarly, the U.S. Department of Commerce's Herbert Hoover Building, designed for more than 5,200 employees, saw an average of 589 employees present daily, also reflecting an 11% occupancy rate. These figures underscore the ongoing underutilization of federal office spaces in the capital, a trend that has persisted since the onset of the COVID-19 pandemic. Efforts to address this issue include the Office of Management and Budget's August 2024 directive, which set a minimum occupancy threshold of 60% for federal buildings and a space utilization standard of 150 square feet per person. This initiative aims to optimize the use of federal properties and reduce costs associated with underused spaces. The silver lining is that local businesses reliant on federal workforce foot traffic—like restaurants and retail—are likely to see renewed activity. We will be looking to these property types for physical and economic occupancy gains. As always, your thoughts welcome.....
Sugi Capital Management
投资管理
Philadelphia，PA 580 位关注者
A 100% employee owned investment management boutique
关于我们
Sugi is a specialist investment manager focused on opportunities in the listed global real estate market. We construct portfolios of high-quality real estate assets for our clients. Our focus is dedicated exclusively to identifying and investing in the best real estate assets in the listed equity market with the goal of delivering attractive absolute returns with strong downside protection.
- 网站
-
https://sugicapital.com
Sugi Capital Management的外部链接
- 所属行业
- 投资管理
- 规模
- 2-10 人
- 总部
- Philadelphia，PA
- 类型
- 私人持股
- 创立
- 2018
- 领域
- real estate、investment management、REITs和Advisory
地点
-
主要
获取路线
US，PA，Philadelphia，19118
Sugi Capital Management员工
动态
-
???????????? ??????????? ??????????? Ski instructors teach their students "pizza" (slow, controlled) and "French fries" (fast, straight). For REITs in 2024, Q3 was like French fries—off to the races, up ~16%. But Q4? That was all pizza—hitting the breaks, down ~8%. While data centers and retail REITs delivered positive returns, most other sectors struggled. Read our report for more about what is going on in the market and how we are navigating the slopes!
-
????????: ?? ????????-???????????? ???????? ?????? ?????? Whew. '24 was exhilarating. CRE investors faced a fast-paced, ever-changing market. From shifting office dynamics and surging multifamily construction to rising interest rates and mounting debt maturities, the challenges were significant—but so were the opportunities. Navigating these high-stakes scenarios required quick decisions, creativity, and a healthy dose of adaptability. It’s safe to say, Jack Bauer would have been proud. Here are 24 of the many stories that made our year. Enjoy! PS: Happy new year! #CRE #RealEstate #MarketTrends
-
Happy Holidays from Sugi! As we approach the end of the year, we extend our sincerest thanks to our valued clients and partners. Your support has been essential, and we cherish our collaboration. Wishing you a joyful holiday season and a New Year filled with prosperity and success. We look forward to what 2025 will bring! #ThankYou
-
-
?? A major milestone in S?o Paulo! After over a year of collaboration and structuring, Sugi Capital Management and inVista Real Estate proudly launched the InVista-Sugi US REITs Fund. This unique fund provides Brazilian investors with access to the US real estate market, offering long-term growth, diversification, and stable income. The partnership between inVista and Sugi combines deep expertise in real estate investment, fund management, and client solutions. The fund is specifically designed to address the unique investment goals, tax considerations, and currency hedging needs of Brazilian investors, helping them navigate the complexities of US REIT investments. And this is just the beginning—this fund sets the stage for global investors to explore US REITs in a new and innovative way. Sugi is grateful for our partnership with inVista! #REITs #RealEstateInvestment #GlobalOpportunities #SaoPaulo
-
-
????????????????????! Last quarter, we wrote that "the time is ripe for a REIT comeback after two and a half years of underperformance." It seems REITs took note, as Q3 2024 was one of their strongest in recent memory, up 16%. Looking ahead, we anticipate the recovery to continue, supported by a potential "Goldilocks" macro environment of easing monetary policy and steady and improving earnings growth. Segments like ???????????? ??????????????, ???????? ??????????????, and even high-quality ???????????? spaces are seeing demand outpace supply, while sectors like ????????-?????????????? and ???????????? face headwinds. While valuations are no longer as attractive after recent gains, there are still untapped pockets in underperforming sectors that haven't fully rebounded. Happy to book a meeting to discuss our report! #REITs #RealEstate #InvestmentStrategy #GoldilocksEconomy #CommercialRealEstate
-
REITs on a roll in 3Q.
Portfolio Manager @ Sugi Capital | Helping investors optimize their portfolios with real estate
?? REITs Win the Third Quarter?? REITs emerged as top performers in Q3, leading a notable shift in market leadership. Meanwhile, Tech and Communication Services fell from the top to the bottom performers in Q3. The Fed easing cycle is certainly supporting REIT valuations. After 14 months of holding steady, the Federal Reserve Board finally cut rates in September by a larger-than-expected 50 bps. Market rates followed, with the 10-year Treasury yield down 61 bps and the 2-year yield dropping a massive 112 bps. Thanks to our friends at Piper Sandler for the chart. #REITs #realestate #rates #sectors #Fed #investing
-
-
Portfolio Manager @ Sugi Capital | Helping investors optimize their portfolios with real estate
Animal Spirits?! Another REIT IPO on the Horizon... FrontView REIT (FVR), a net lease REIT, is set to join Lineage (LINE) and American Healthcare REIT (AHR) as the third REIT to go public in the past year. This is exciting news for a market that saw no IPOs in the two prior years, though there’s still plenty of room for growth as the market rebounds. For context, we had 29 (!) REIT IPOs back in 2004. Just a few initial takeaways from the S-11/A filing: 1. Emerging Growth Company Status: FrontView REIT is designated as an "emerging growth company" under the JOBS Act, a classification that permits it to adopt less stringent reporting requirements compared to larger, more established firms. This places an emphasis on asking the questions of management but should not materially affect the public valuation. 2. Non-Traditional Tenant Focus: Net lease-focused FrontView targets service-oriented, e-commerce-resistant tenants, such as car washes, cellular stores, and medical providers. This unique approach can add diversification to REIT portfolios heavy in traditional goods-oriented tenants. 3. Management Internalization: FrontView’s shift from external to internal management included key transactions aimed at enhancing cost efficiency and aligning shareholder interests. This transition also brought new operational and governance challenges, which will be central in our discussions. Looking forward to further underwriting this IPO (and more?) as the REIT market emerges from its "green shoots" phase.
-
-
?? Who Won 2Q24 REIT Earnings Season? This earnings season, we're taking a closer look at REIT stocks through an Olympic-inspired lens: gold, silver, and bronze. A few highlights below; see the attached newsletter for more detail. GOLD: - Retail Strip Centers: Strong leasing and high occupancy. Kimco, Regency, and Brixmor beat expectations and raised guidance. - Healthcare: Stable rent coverage and increased acquisitions. Raised 2024 guidance despite higher interest rates. - Apartments: Thriving in coastal markets, with many raising 2024 guidance. SILVER: - Single-Family Rentals: AMH and INVH raised guidance, with AMH outperforming. - Industrial: Strong demand and raised guidance, led by Prologis. - Office: Sunbelt markets thrive, while urban markets face some challenges. BRONZE: - Self Storage: Facing rent growth and occupancy challenges. - Hotels: Under pressure with concerns over RevPAR guidance and competition from international travel. #REITs #Investment #RealEstate #MarketAnalysis #StockMarket
-
?? Who Won 2Q24 REIT Earnings Season? This earnings season, we're taking a closer look at REIT stocks through an Olympic-inspired lens: gold, silver, and bronze. A few highlights below; see the attached newsletter for more detail. GOLD: - Retail Strip Centers: Strong leasing and high occupancy. Kimco, Regency, and Brixmor beat expectations and raised guidance. - Healthcare: Stable rent coverage and increased acquisitions. Raised 2024 guidance despite higher interest rates. - Apartments: Thriving in coastal markets, with many raising 2024 guidance. SILVER: - Single-Family Rentals: AMH and INVH raised guidance, with AMH outperforming. - Industrial: Strong demand and raised guidance, led by Prologis. - Office: Sunbelt markets thrive, while urban markets face some challenges. BRONZE: - Self Storage: Facing rent growth and occupancy challenges. - Hotels: Under pressure with concerns over RevPAR guidance and competition from international travel. #REITs #Investment #RealEstate #MarketAnalysis #StockMarket