Hello, Commercial Real Estate Pros! 🏢

The commercial real estate (CRE) landscape is evolving fast, and those who adapt will reap the rewards. From sustainability shaping investment decisions to innovative firms making bold moves, this issue dives into the trends defining CRE in 2025.

We’ll explore how green buildings aren’t just good for the environment but also for your bottom line, why a strategic powerhouse is shaking up the Arizona market, and how AI is (and isn’t) changing real estate prospecting.

Let’s get into it. 👇

📰 Upcoming in this issue

• The Business Case for Sustainability in Commercial Real Estate 🏢🌱

• Innovative Strategy Firm Expands into Commercial Real Estate 🏗️📈 

• How Commercial Real Estate Agents Should Use AI 🏢

📈 Trending news

• Beyond ‘Survive to 2025’: What’s Next for Commercial Real Estate?

• Commercial Real Estate Confidence Surges Amid Growing Demand

• How Tariffs Could Reshape Commercial Real Estate

The Business Case for Sustainability in Commercial Real Estate 🏢🌱 read the full 1,100-word article here

Article published: February 14, 2025

Sustainability in commercial real estate (CRE) has evolved from a “nice-to-have” feature to a critical driver of profitability. With 64% of lenders and investors incorporating sustainability into their strategies, developers embracing energy-efficient solutions are cutting costs, attracting investors, and securing long-term value.

From tax incentives under the Inflation Reduction Act (IRA) to reduced operational risks, sustainable buildings aren’t just good for the planet—they’re good for business. Green-certified buildings see higher rents, lower vacancy rates, and stronger tenant retention, giving forward-thinking firms a competitive edge in a rapidly shifting market.

Key Takeaways:

• 💰 Financial incentives fuel ROI: The IRA provides up to 40% in tax credits for solar energy and energy efficiency projects, significantly lowering upfront costs.

• 📉 Cutting costs & reducing risks: Green buildings cut operational expenses by 40%, while climate-proofing reduces insurance liabilities and long-term risk exposure.

• 📈 Higher rents & occupancy rates: LEED-certified buildings command 3.7% higher rents and 9.5% higher occupancy than non-certified properties.

• 🏆 ESG attracts investors & tenants: 70% of investors consider sustainability in real estate decisions, and tenants are willing to pay more for eco-friendly spaces.

Innovative Strategy Firm Expands into Commercial Real Estate 🏗️📈 read the full article here

Article published: February 18, 2025

AP & Associates, led by Gulf War veteran and strategist Alan "AP" Powell, is making a bold move into commercial real estate. With a track record of high-impact partnerships across industries, Powell aims to create economic opportunities through strategic acquisitions.

A key initiative is the Arizona Impact Center (AIC), a 1.55-acre nonprofit hub in Phoenix’s Gateway District. Set to open within two years, AIC will provide affordable office space and shared resources to over 50 community-focused organizations.

Powell's expansion also includes major property acquisitions, such as a new supper club in Chandler and a financial hub on Camelback Road, solidifying his role as a driving force in Arizona’s commercial real estate scene.

Key Takeaways:

• 🏢 Arizona Impact Center: A first-of-its-kind nonprofit hub in Phoenix, designed to support community organizations with subsidized office space.

• 🍽️ Supper club transformation: A former Charleston’s restaurant is being converted into a premier dining destination in Chandler, AZ.

• 🏦 Strategic acquisitions: AP & Associates, in partnership with JMS Capital, acquired a prime Phoenix financial property, home to Arizona Financial Credit Union.

• 🎖️ Veteran & community impact: Powell, co-founder of HeroZona Foundation, continues to champion veterans and underserved communities through business initiatives.

How Commercial Real Estate Agents Should Use AI 🏢 watch the full 14-min video here 

Video published: February 19, 2025

The commercial real estate industry is abuzz with AI tools, but Henry Eisenstein argues that AI isn’t quite ready to replace human agents—at least not for high-level investor prospecting. While AI cold callers can dial thousands of numbers daily, their effectiveness lags behind trained agents, especially when dealing with sophisticated investors. Instead, Eisenstein recommends focusing on high-volume lead generation strategies like cold calling, door-knocking, or social media—but choosing one and going all-in.

His team dials 250,000 calls a month, proving that human connections still drive results. AI might help filter leads, but when it comes to closing deals? People still prefer people.

Key Takeaways:

• 📞 AI cold calling isn’t there yet: While AI can handle high call volumes, investors expect sophistication that AI lacks (2:24).

• 🚀 Pick one lead gen strategy and scale it: Whether it’s cold calling, social media, or door-knocking, go deep, not wide (4:17).

• 📊 AI can help with data, not closing: Use AI for lead filtering, not negotiations—real estate is still a people business (7:22).

• 💼 The 72-hour deal process: Eisenstein’s team moves fast—from lead to offer to negotiation within three days (13:01).

Why It Matters

The rules of commercial real estate are being rewritten. Green buildings aren’t just a trend—they’re outperforming traditional properties in every way, from rents to retention. Investors are paying attention. So should you.

Meanwhile, visionaries like Alan "AP" Powell are proving that strategic real estate plays can transform entire communities while generating serious returns. And when it comes to AI? The hype is real, but deals still come down to human relationships.

Adapt or get left behind.

Anne Morgan
Editor-in-Chief
Commercial Real Estate Weekly