Welcome to a new issue of the Unlocking Real Estate Value newsletter. Each week I will provide you with exclusive advice and professional insights to help you realise long-term value through real estate development.
This week’s selections highlight the real impact of AI on underwriting and strategy, while also capturing current deal signals across the hospitality, residential, and alternative investment sectors.
From the trillions being invested in AI infrastructure to the rising demand for premium residential properties in Milan, we analyse how capital, customers, and capacity are shifting. This understanding reveals important implications for development, leasing, and potential returns.
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1. $7 trillion required to build out global AI infrastructure will span data centres, chip manufacturing, power sources and more
A sweeping AI capex cycle is unfolding across data centres, semiconductors, transmission, and generation. For CRE, it means hyperscale land races, power-adjacent site selection, and industrial supply-chain spillovers. Expect new JV models, long-dated PPAs, and infrastructure-grade leases that reshape yields and underwriting assumptions for logistics, energy-enabled campuses, and edge locations.
2. Starbucks doesn’t sell coffee. Aman doesn’t sell rooms. Equinox doesn’t sell fitness; they sell the Third Place.
The thesis: category leaders monetise belonging, not commodities. “Third place” brands win by choreographing rituals, service, and design to command pricing power and loyalty. For developers and owners, the play is curating experiential layers—lobbies, amenities, micro-events—that extend dwell time, drive retail mix quality, and anchor premium rent profiles across mixed-use assets.
3. The Flatiron Building sat empty for years. Now it’s becoming 38 luxury condos starting at $11M.
An icon pivots from an underused office to an ultra-prime residential. Beyond the headlines, this reflects a broader recalibration of historic CBD assets toward highest-and-best use. Expect complex planning, landmark constraints, and capex heavy lifts—offset by brand equity, scarcity value, and global UHNW demand seeking trophy addresses and differentiated amenity stacks.
4. I’ve been building something small to tackle a big gap: bringing a bit more transparency to Portugal’s housing market.
Grassroots data tools are emerging where public datasets are fragmented. A transparency layer for pricing, permits, and supply helps founders, tenants, and investors make quicker calls. For CRE operators, this supports micro-market selection, pricing strategy, and community trust—especially in Lisbon/Porto submarkets where regulation and sentiment can swing investor appetite.
5. Everything I thought I knew about building a business was wrong. Here’s how I went from $0 in product revenue to over $100,000 a month in 10 months
A founder deconstructs product-market fit: relentless iteration, direct customer feedback loops, and a focus on painkillers rather than vitamins. Lessons translate to CRE services: package outcomes, not hours; instrument funnels; productize advisory; and use content to pre-qualify. The meta-point—speed of learning compacts the sales cycle and compounds into pricing power over time.
6. Another day, another Hong Kong investor offloading prime London office.
Disposals from Asia-based owners highlight ongoing repricing in London’s core. Debt costs, leasing risk, and capex for ESG repositioning keep bid-ask tensions high. Watch for value-add capital seeking vacancy-plus-capex plays, flex-heavy re-lettings, and mixed-use conversions. Pricing discovery continues to hinge on lender flexibility and tenant covenant depth.
7. The U.S. hotel market just split in two. Luxury properties are thriving. Budget hotels are dying.
Performance bifurcation is widening: luxury captures experiential, price-inelastic demand; economy faces margin squeeze from OTA mix, labour, and ageing stock. For Europe, expect similar city-centre polarisation. Developers should stress-test pro formas by segment, brand power, F&B activation, and event calendars—while underwriting renovation ROI and asset-management intensity as core value drivers.
8. Milan’s residential market continues to surge. The FIDE Group with Marco Plazzotta finalises another investment in premium residential
Premium resi in Milan remains resilient, led by brandable locations, superior design, and energy-efficient specs. Institutional and entrepreneurial capital are leaning into scarcity and lifestyle drivers. Pipeline risk rests in permitting timelines and construction costs; upside comes from design differentiation, services, and international buyer demand seeking stable euro-zone safe havens.
9. 𝗡𝗲𝘄 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗠𝗶.𝗧𝗼. 𝗙𝘂𝗻𝗱. 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 𝘀𝗶𝗴𝗻𝗲𝗱 𝘄𝗶𝘁𝗵 𝗔𝗽𝗲𝗶𝗿𝗼𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹 𝗲𝘀𝘁𝗮𝘁𝗲 𝗰𝗼𝗺𝗽𝗹𝗲𝘅 𝗹𝗼𝗰𝗮𝘁𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗵𝗲𝗮𝗿𝘁 𝗼𝗳 𝗠𝗶𝗹𝗮𝗻, 𝗼𝗻 𝗖𝗼𝗿𝘀𝗼 𝗩𝗲𝗿𝗰𝗲𝗹𝗹𝗶
A new commitment on Corso Vercelli signals continued appetite for core-city redevelopment. Expect emphasis on sustainability specs, ground-floor activation, and premium residential or mixed-use positioning. Key watch-outs: construction inflation, façade/heritage coordination, and lease-up velocity. Execution quality and brand partnerships will determine price realisation upon completion.
10. Kryalos acquisisce sette Rsa nel nord Italia
Senior living and healthcare real estate continue to scale institutionally in Italy. Kryalos’ portfolio addition underlines demographic tailwinds, long leases, and operator partnerships. For investors, underwriting hinges on operator covenant, regulatory frameworks, and capex for modernisation. The asset class offers diversification and income stability relative to cyclical office exposures.
— Carlo
Founder and Managing Director Benigni
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This post is sponsored by Benigni, a specialist development manager working with international investors to realise long-term value through optimised development strategies. To learn more, click this link to our website.
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