Why Principal's $100B Real Estate Strategist Is Bullish on Office While Others Panic

Season 3, Episode 4: Rich Hill, Global Head of Real Estate Strategy at Principal Asset Management, joins the show for a candid deep dive into the state of CRE in 2025, from CMBS and construction lending to the hype around AI data centers. With over $100B in real estate under management, Rich explains why office isn’t dead, where multifamily pricing is off, and how investors are recalibrating their return expectations. We discuss: – Why debt is suddenly back in favor – What’s fueling (and threatening) the data center boom – Where office sentiment is quietly shifting – The truth behind the “housing shortage” narrative Rich brings clarity to the chaos, offering a rare look at how one of the industry’s largest real estate platforms is navigating 2025. TOPICS 00:00 – Intro & Birthday Surprise 03:00 – Rich’s Career Path + Joining Principal 06:00 – How Principal Allocates Capital in Today’s Market 10:30 – Debt, Construction Lending, and CMBS Strategy 15:40 – Data Centers, AI Demand, and Market Caution 22:30 – Office Outlook and Why Originations Are Ticking Up 28:00 – Living Strategies, Seniors Housing, and Multifamily Mispricing 33:50 – US vs. Europe: Capital Sentiment and Cross-Border Strategy 39:20 – Tariffs, Onshoring, and Resilient Cash Flows 43:00 – Return Expectations for CRE in 2025 and Beyond 47:00 – Final Thoughts on Alternatives and Outlook Shoutout to our sponsor, InvestNext. One platform to raise and manage capital for real estate investment. For more episodes of No Cap by CRE Daily visit https://www.credaily.com/podcast/ Watch this episode on YouTube: https://www.youtube.com/@NoCapCREDaily About No Cap Podcast Commercial real estate is a $20 trillion industry and a force that shapes America’s economic fabric and culture. No Cap by CRE Daily is the commercial real estate podcast that gives you an unfiltered ”No Cap” look into the industry’s biggest trends and the money game behind them. Each week co-hosts Jack Stone and Alex Gornik break down the latest headlines with some of the most influential and entertaining figures in commercial real estate. About CRE Daily CRE Daily is a digital media company covering the business of commercial real estate. Our mission is to empower professionals with the knowledge they need to make smarter decisions and do more business. We do this through our flagship newsletter (CRE Daily) which is read by 65,000+ investors, developers, brokers, and business leaders across the country. Our smart brevity format combined with need-to-know trends has made us one of the fastest growing media brands in commercial real estate.