KBS’s Marc DeLuca Sees Capital Market Reset Underway for Commercial Real Estate

Marc DeLuca, CEO and Eastern regional president of KBS, and chairman of the board at KBS REIT III, joined the latest episode of the REIT Report to discuss how the current market cycle presents a unique challenge, particularly regarding capital availability and costs. Today's environment resembles a capital markets "reset" rather than a structural change in how real estate is used, he said. DeLuca also shared how REITs have performed well compared to other major indices, with their strategic focus on high-quality assets and sustainability attracting investors seeking resilience in their portfolios. As interest rates start to decline, REITs “can act quickly, and their ability to use leverage will be greatly enhanced and allow REITs to grow tremendously,” he said.Chapters:00:00 Rates And Deal Flow 00:27 Meet The Host And Guest 00:59 Capital Markets Reset01:51 Why REITs Diversify 02:49 REIT Sentiment Today 04:02 Prime Office Defined 06:11 AI And Office Demand 07:57 Beyond Office Focus 09:21 Picking Winning Markets 11:03 Deal Approval Playbook 14:02 Relationships Drive Deals 14:39 AI In Real Estate Ops 17:53 Sustainability That Pays 21:10 Watching Rates Ahead 23:07 Closing And Subscribe