Newmark Group

area office sales in the last 12 months were done at a loss.

Interesting quote here from Newmark's Kevin Shannon that really explains why this is happening.

He says, we're still at a stage where a lot of your sales are lender driven.

So it's not surprising that so many of them are at a loss.

We're not looking to franchise or license Sage's name.

We are truly looking at the Four Seasons model, where instead of your property being managed by JLL, CBRE, Newmark, or in-house, we come in and we will manage your property.

The difference between us and everyone else is we will manage that property under the Sage flag.

We will brand your building a Sage property.

And we're actually seeing that quite a bit, particularly in real estate.

Ember has also become the exclusive workforce and workplace data performance platform for Newmark as well.

So within real estate, hence, we're seeing a need for this and again, moving the starting line of how we think about workplace.

How do you collect the data and what is it? Can you give me an example of what you're measuring and then how an organization would use that to either design the space or shift the behavior? I'm thinking of it like I'm coaching a team and I have all this data and I need a certain performance outcome.

Control is the wrong word.

It's really... additional data to make better informed decisions about how to operate your business where we didn't have them before.

And if you think about real, if we use real estate and what we're doing with Newmark as an example, headquarters, global headquarters, centers of excellence that Newmark is helping from a real estate perspective.

There's always been the data outside the building, you know, labor patterns, communities, brick and mortar, the economics of that.

I found this chart.

Um, I'm gonna pull a lot of charts from, from Newmark, so, so quick shout out to Newmark.

Uh, they put some of my favorite, um, uh, multifamily market reports together.

So, um, this is a lot of their, their, uh, research.

Uh, it's construction costs, it's, um, financing costs with the, the, the 10-year rising, and it's also, I think, some overhang from this, uh, this oversupply.

Uh, check this chart out.

This was really interesting, uh, 'cause you hear about construction costs, and this was again another, uh, Newmark slide.

So in 2025, we saw, um, you know, costs rise about 3%.

Welcome back to another episode of the Industrial Real Estate Show.

I'm pleased to be joined by a fellow SIOR, Steve Kapp, who's the Executive Managing Director of Newmark in San Francisco.

Very excited to chat with you, Steve.

Thanks so much for joining me on the show.

I left NAI, BT Commercial in 2007 because I was recruited away by another regional firm in the Bay Area called Cornish & Cary, and they hired four, a group of four industrial brokers, I was one of them, to start their East Bay industrial practice in 2007.

So from there, um, you know, all was good and things on that.

And then in 2014, we, we were acquired by Newmark.

So Newmark had-

And finally, like prediction markets, BGC just announced a great deal of fanatics to launch prediction markets.

And Newmark is doing incredibly well as well, double-digit growth in all of our major areas.

We found a huge stride in the AI infrastructure space.

When you put all three companies together, especially on that front, you get the power of the platform.

And Brandon and I have been really excited about the opportunities there as we all work together.

Well, I do have to ask you, Kyle.

I mean, you're the chief strategy officer for Newmark, but we should point out the CEO is going to step down at the end of the year.

I know a search is going to start.