Filtered by category: Industry Clear Filter

Emerging Trends 2022 Report: Flexibility, Resilience to Drive Commercial Real Estate for Next Decade

originally published by  in Features for REBusniess Onlin and reposted by NAIOP National.

WASHINGTON, D.C. — Flexibility, convenience, and ultimately commercial real estate’s resilience will drive the industry over the next decade as owners respond to and recover from the COVID-19 pandemic.

That’s according to Emerging Trends in Real Estate 2022, an annual report jointly produced by PwC US and the Urban Land Institute (ULI). The report includes proprietary data and insights from nearly 1,700 leading real estate industry experts, gathered both through in-person interviews and a survey.

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Pandemic, Shifting Markets Creating Risks, Opportunities for Capital Markets

originally published by JEFF ZBAR for NAIOP National

Capital Markets

While some assets in the real estate market have been jolted by pandemic-related fallout, some investors, managers, and property owners will look back on the COVID-19 era as the “golden era” of real estate investment.

While some sectors have struggled, like office and retail, certain sectors have seen tremendous growth. Managers with operational expertise with the right property type have found success.

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Automation and Digital Transformation in CRE

originally published by  ROCHELLE BRODER-SINGER for NAIOP National

Tech Pictures

Commercial real estate and construction have been notoriously slow to adopt new technologies. But digital transformation is coming to the industry. At CRE Converge 2021 in Miami Beach, experts discussed how several new technologies are affecting developers, builders, and owners:

Reality capture

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The Most Valuable Asset: Expanding the CRE Talent Pool

originally published by Rochelle Broder-Singer for NAIOP National

WomenInCRE

To address its ongoing talent shortage, the commercial real estate industry must look outside of traditional recruiting avenues and consider people with nontraditional career paths.

Ten years ago, great employees seemed much easier to find – an organization might find three excellent candidates for anyone open position. Today, it can feel like there are no great candidates available.

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Grant Hill on Coach K, Leadership and Attracting Young People to CRE

originally published by Brielle Scott for NAIOP National

Grant Hill

Attendees at CRE. Converge this week had the unique opportunity to hear from seven-time NBA All-Star and sports icon Grant Hill. Skip Kalb, principal, Skip Kalb Strategies, LLC, and incoming chair of the NAIOP Research Foundation, interviewed Hill about lessons learned through his time in the NBA, his recent appointment to lead the USA Basketball Men’s National Team in the 2024 Olympics, his transition to a powerhouse commercial real estate investor and owner in several markets across the country, and more. 

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The Future of Goods Distribution and the Supply Chain

originally published by Trey Barrineau for NAIOP National

Card over Bridge

In the wake of the COVID-19 pandemic, supply chain problems have become pervasive. In fact, things are getting so bad that many fear they could imperil the all-important holiday shopping season this year.

Michael Landsburg, chief development officer with NFI Real Estate, said there are currently 70 cargo ships anchored off the ports of Los Angeles and Long Beach, California. A month ago, there were about 40.

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Alternative Means and Methods for Maintaining Project Momentum

originally published by BRIELLE SCOTT for NAIOP National

Contractor Pic

The post-pandemic construction boom has taken many forms. E-commerce and big box retailers are developing across the country, while at the same time, construction projects that were postponed during the pandemic have resumed. However, the lack of workforce at manufacturing facilities last year combined with the high demand for materials have led to price increases and lead-time delays.

In a session at CRE.Converge this week, a panel of experts led by Bill Finfrock, president, FINFROCK, shared some of the strategies used in construction to keep projects moving forward despite these challenges.

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Build-to-Suit vs. Spec: Which Building is Right For a Specific Company?

originally published by K.J. Jacobs for NAIOP National

Building Pic

Businesses that are young and growing might lean toward spec; older, established firms could favor build-to-suits.

When it comes to choosing the right building, there are several questions an organization must ask itself. Is the company at a place where it can invest in a building that will attract prospective employees? Is the company looking for a more temporary or flexible workplace? Is the facility able to support the organization’s needs for production, research, collaboration or innovation? 

Since each company’s requirements, goals and operations are unique, as are each facility’s offerings and characteristics, the answers will vary depending on who’s asking. 

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A Two-Dimensional Approach to Evaluating Commercial Real Estate Markets

originally published by Maria Sicola, Charles Warren, PhD, and Megan Weiner of CityStream Solutions, LLC and posted for NAIOP Global

In 2020, the NAIOP Research Foundation published A New Look at Market Tier and Ranking Systems, which identified the limitations of one-dimensional tier and ranking systems that are commonly used to evaluate metropolitan commercial real estate markets. When tailored to the needs of a specific type of investor, these models can help prioritize markets for consideration. However, tier and ranking reports designed for a more general audience tend to be of only limited use to most end-users since they do not account for differences in investment strategy, risk tolerance or specialization. Further, all tier and ranking models condense complex market characteristics into a single score, providing only limited information that investors can use to evaluate and compare different markets.

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Communicating Effectively with CRE Community Stakeholders

Originally published for NAIOP

Building Picture

The logistics market is red-hot, but external forces are trying to cool it. A panel at I.CON West this week in Long Beach, California, addressed technical, regulatory and political challenges facing industrial real estate in Southern California, and shared recommendations for all developers working with decision-makers in their communities.

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Preparing your Commercial Property for the Market

Building Picture
Property values are soaring, and interest rates are at near-record lows. It’s no wonder many commercial property owners are considering selling their assets to take advantage of one of the strongest sellers’ markets in recent history.
Much like preparing to sell a home, commercial properties need to be appealing to potential buyers. But unlike your home, which might be improved significantly with some simple landscaping and a fresh coat of paint, commercial properties need more than just a physical facelift. They also need fiscal preparation.

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Buildings account for 39% of global greenhouse emissions — that could be an opportunity for investors

Originally written by Karen Gilchrist on September 17th, 2021 for CNBC.

Investing in sustainable buildings could offer a real solution to reducing emissions in one of the world’s most polluting sectors, said Taronga Ventures, an investment firm focused on sustainable innovation and tech.

Buildings currently represent 39% of global greenhouse emissions, according to U.N. data. Almost one-third (28%) of the global total is the result of running buildings — referred to as operational emissions, while 11% comes from building materials and construction.

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Four Challenges in Industrial Real Estate Today

Digital Industrial Pic
Originally published for NAIOP
A panel of experts took on the biggest challenges in industrial real estate in the closing panel of the first day of I.CON West 2021, held this week in Long Beach, California. From supply chain stressors to volatile pricing to labor shortages and building design, the issues seem bigger than ever for commercial real estate’s hottest sector. Here’s what these industrial leaders had to say on these topics:
  • Supply chain challenges
  • Spikes in Rent and Demand
  • Building Design and Location
  • Predicting the Future

Read the full article here!

Survey Shows Progress in Diversity Efforts in Real Estate Investment Management

Originally published for NAIOP's Development Magazine Summer 2021 Issue by Trey Barrineau.

However, a lot of work remains despite tangible advances in recent years.

Women and minorities have made some progress in reaching the C-suite in commercial real estate investment management firms during the past few years, but the 2021 NAREIM Diversity & Inclusion Survey shows that there is still a lot of work to do.

“Material, sustained changes will take time to show through in the data,” said Zoe Hughes, CEO of NAREIM, in a release. “But what is clear is that there is a mandate and momentum for DEI (diversity, equity and inclusion) to be a priority within the real estate investment management industry.”

The survey, conducted by NAREIM and executive recruitment firm Ferguson Partners, reveals that the real estate investment management industry as a whole is mostly male and white. Men, who are 49.2% of the U.S. population according to the U.S. Census, comprise 60% of full-time employees in the real estate investment management, and non-Hispanic whites, who are 62.8% of the U.S. population, represent 73% of workers. (Blacks make up 6% of the industry, while Asians and Hispanics each represent 10% of CRE investment-management staffing.)

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The Acceleration of E-commerce and the Modern Supply Chain

Originally published on September 1, 2021, by Kathryn Hamilton for NAIOP Newsletter.

The term “supply chain” was coined on June 4, 1982, when the Financial Times published an article that used it as a replacement for “production and inventory management.” Now a permanent part of our lexicon, looking back at just how the supply chain has grown and changed over four decades is how a panel of industry leaders began their presentation at NAIOP’s I.CON West, held this week in Long Beach, California.

“Take a walk back to the 1980s,” invited Rich Thompson, international director, supply chain & logistics solutions, Americas, JLL. “There were no laptops, no internet, no cell phones, and no Amazon. Catalog orders took around 14 days to arrive, and retail real estate was hot.”

Today, the supply chain is an increasingly popular field of study, Amazon is the second-largest employer in the U.S. and the third most valuable in terms of revenue, and online orders are delivered in two days – or less – at no change. Industrial is hot.

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Four Perspectives on the State of the CRE Economy

Originally published on September 1, 2021, by Marie Ruff for NAIOP News.

Commercial real estate professionals always seek to determine where markets stand now and what to expect for the future. That future is particularly uncertain today as we see the continued impacts of the COVID-19 pandemic.

JLL Chief Economist Ryan Severino shared his economic analysis in a keynote address at NAIOP’s I.CON West this week in Long Beach, California. In his role at JLL, Severino is responsible for global and regional economic research, analysis and forecasting, as well as property market forecasting. He presented four perspectives on the economy ranging from the short-term to the industrial-specific.

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Transformative Lessons for Commercial Real Estate Leaders

Originally published on August 24, 2021, for NAIOP News.

Through his experience leading a turnaround as the former CEO of Prologis, Walt Rakowich realized leaders today must lean into timeless values and principles, but with a fresh perspective on the new and complex realities of our leadership climates. In a keynote address next week at I.CON West: The Industrial Conference, Rakowich will share advice on engaging your values and your organization with purpose and passion. Join the 700+ industrial real estate leaders planning to attend I.CON West next week in Long Beach.

 

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New Report: Industrial Space Demand Forecast

Industrial Space Demand Remains Strong 

Demand for industrial real estate continues to be strong as the long-term trend toward e-commerce (and away from in-store sales) continues with no end in sight. With nearly 100 million new square feet delivered nationally since the beginning of the year, 450 million square feet currently under construction and another 450 million planned, the demand for industrial real estate still outpaces supply.1

Because of this, authors Dr. Hany Guirguis and Dr. Michael Seiler forecast that the total net absorption in the second half of 2021 will be 162.6 million square feet with a quarterly average of 81.3 million square feet. In 2022, the projected net absorption is 334.6 million square feet with a quarterly average of 83.6 million square feet. An improvement in the outlook for the economy in 2021 and 2022 is behind the upward revision of the 2022 forecast. For example, the real GDP growth rate is now forecast to be 7% in 2021, above the previous forecast of 5% growth. As economic growth is projected to revert toward long-term growth rates in 2023, net absorption in the first half of the year is forecast to be 160.5 million square feet, for a quarterly average of 80.2 million square feet. 

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Two for Tuesday - 2040 Comp Plan Town Hall!

#1) 2040 Comprehensive Plan - Next Steps with Councilmembers Renee' Johnson and Victoria Watlington

The first draft of the Unified Development Ordinance (UDO) is expected to be released to the public on or around October 4th. A recent presentation from Planning Staff to Charlotte’s Transportation, Planning, & Environment Committee contained the following:

  • 6-foot sidewalks everywhere (increased from the current 5-foot regulation) (pdf page 20)
  • All parking to rear or side of attached housing (pdf page 18)
  • Future right-of-way exactions (pdf page 20 & 21)
  • The developer provides bus shelters as a condition of approval (pdf page 20)             
  • Traffic Impact Studies (TIS) for all development even “by right” (pdf page 21)
  • “By right” infill may be subject to greater stormwater regulations and tree save (pdf page 22 and 23)
  • Greater tree save rules (pdf page 23) 

These provisions will add substantial costs and likely disincentivize future infill development. We will continue to track them through the process and voice our concerns regarding adverse consequences.

 

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State and Local Governments Receive Federal Recovery Funds Under Interim Rule

Originally published on August 18, 2021, by Toby Burke for NAIOP.

The federal government has provided additional support for state and local governments in response to the COVID-19 pandemic. President Joe Biden signed the American Rescue Plan Act (ARP) into law on March 11, which established the Coronavirus State and Local Fiscal Recovery Funds. The new federal funds provide $350 billion to support state, local, territorial, and tribal governments in responding to the COVID-19 pandemic and spurring economic growth. These federal funds are a windfall for some governments that did not experience a fiscal shortfall, particularly at the state level.

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