Filtered by category: Industry Clear Filter

The Case for Implementing DEI in Commercial Real Estate

Originally published on January 31, 2023, by Trey Barrineau for NAIOP E-Newsletter.

Like many industries, commercial real estate has often struggled to make progress on diversity, equity and inclusion (DEI). An interactive session during NAIOP’s Chapter Leadership and Legislative Retreat (CL&LR) in Washington, D.C., in late January explored the “what, why and how” of DEI and how firms in the industry can better implement it.

Rhonda Payne, CAE, the founder and CEO of Flock Theory, opened by discussing personal identity, which Psychology Today defines as “the memories, experiences, relationships and values that create one’s sense of self.” According to Payne, some aspects of each person’s identity are fixed. These include things you were born into, as well as the era in which you exist. Furthermore, there are the choices we make (such as which college to attend or what career to focus on) and the opportunities that are presented to us.

“All these things make up an individual’s identity,” Payne said. “All these contribute to the diversity within a space or team.”

Read More

Vision 2023: Annual Report

Originally published on January 31, 2023, by NAIOP E-Newsletter.

NAIOP is your forward-thinking partner committed to working alongside our members to build your knowledge, advance your career and protect your business.

Watch our 2022 accomplishments and preview what's ahead for the association throughout this year, including the release of new programs, opportunities to connect across the chapter network, and resources that will move our members' businesses forward.

Watch Video

NAIOP: Commercial Real Estate Vital to the Overall Economy; Industrial Sector Leads, and Retail Stages a Comeback

Originally published on January 26, 2023 by Kathryn Hamilton for NAIOP E-Newsletter. 

The impact of new commercial real estate development in the U.S. continues to grow, according to the annual Economic Impacts of Commercial Real Estate research study conducted by the NAIOP Research Foundation.

The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2022 resulted in direct expenditures of $826.9 billion and the following impacts on the U.S. economy: 

  • Contributed $2.3 trillion to U.S. gross domestic product (GDP).
  • Generated $831.8 billion in personal earnings.
  • Supported 15.1 million jobs.

Among other highlights:

  • Significant (143.4%) increase in non-warehouse (manufacturing) industrial building construction in 2022, making it the largest segment of new CRE construction in 2022.
  • The four property types covered in the report saw increased construction spending (hard costs) last year (see table).
View Report

Bringing Wellness to the Industrial Workplace

Originally published on January 20, 2023 by Brielle Scott for E-Newsletter.

Wellness in the workplace – it’s a buzzy phrase we hear often in reference to office buildings, but when it comes to the industrial and manufacturing facilities that are ubiquitous to us, what kind of wellness features would we find inside?

Long days, physical labor and often isolated locations can take its toll on the workers at these locations. According to the U.S. Bureau of Labor Statistics, there was a 60% turnover rate in the industrial sector in 2020, and it stands to reason that the additional burdens placed on these essential workers (not to mention the staggering increase in e-commerce demand) during the COVID-19 pandemic may have exacerbated the issue.

As any corporate accountant can tell you, employee turnover can have a major impact on a company’s bottom line. And large-scale owners of industrial assets are under the same market pressures as office, multifamily or hotel owners when it comes to ESG reporting and performance.

Read More

NAIOP Insights: ESG Essentials for Commercial Real Estate

Originally published on January 19, 2023 for NAIOP E-Newsletter.

ESG is emerging as a hot topic for businesses and commercial real estate development in particular. To stay ahead, developers can embrace standards to set their projects up for success. Learn how smart building technologies, tax and state incentive programs, and setting measurable goals as companies establish their ESG practices can support this evolving initiative.

NAIOP Insight by: Rielle Green, LEED AP O+M, WELL AP, Fitwel Ambassador Director of ESG, Acadia Realty Trust.

This NAIOP Insight was filmed at CRE.Converge 2022.

Watch NAIOP Insights Video Series

What Will 2023 Bring for CRE?

Originally published on December 27, 2022 for NAIOP E-Newsletter by Ed Finkel.

As the calendar turns to 2023, what’s ahead for the commercial real estate field? We talked to several NAIOP Distinguished Fellows and Research Foundation Governors to get their forecasts for the next 12 months.

Investor Interest in Single-family Housing 

Single-family rental housing is top-of-mind for Distinguished Fellow Suzanne Lanyi Charles, who chairs the Paul Rubacha Department of Real Estate at Cornell University. A sector that grew quickly after the 2008 housing crisis, single-family rentals have become a well-established asset class with publicly traded and private companies that have as many as 80,000 units, she notes.

The rapidly rising interest rates of the past year have led smaller investors to pull back, Charles says, but that creates an opportunity for the large to become larger. “I’d expect to see the largest institutional investors, those that have access to cheap capital, to use this period of high-interest rates and declining home values, to grow even larger,” she says.

Read More

CommercialEdge: Office Vacancy Rates Rise Nationwide in 2022

Originally published on December 19, 2022 by Eliza Theiss for NAIOP E-Newsletter.

Although many in the industry had assumed that the office market would stabilize in 2022 –  and perhaps even begin to recover pandemic losses – this stabilization did not occur. Rather, wider economic changes; repeated interest rate increases by the Federal Reserve; the further establishment of work-from-home and remote office arrangements; and increasing numbers of office footprint reductions by businesses caused vacancy rates to continue to rise throughout the year. At the same time, rent growth remained patchy.

Listing Rates Show Significant Growth, But Only in Select Markets

Large segments of the office-using sector have adopted remote and hybrid work (at least in part) since the start of the pandemic. Accordingly, the demand for offices has decreased in most markets. In addition, many businesses have also reduced the size of their offices, while others have firm intentions to do the same in the near future. As a result, the national vacancy rate – which reached 16.3% in November – was 150 basis points (bps) higher than it was in October 2021, according to the most recent CommercialEdge report.

In fact, during the last 12 months, vacancy rates increased in 86 of the 120 areas monitored by CommercialEdge, including 22 of the 25 most significant markets. Specifically, the leading U.S. office markets with the largest vacancy rate increases were San Francisco (+390 bps) and Portland, Oregon (+400 bps).

Read More

What's old is new: Why you should consider adaptive reuse

Originally published on December 9, 2022, by Mike Cavanaugh and Scott Waddell for BDCNetwork.com

While new construction allows for incredible levels of customization, there’s no denying that new buildings can have adverse impacts on the climate, budgets, schedules, and even the cultural and historic fabrics of communities. While any responsible architect will design buildings to minimize these impacts, there is no avoiding them entirely.

One proven strategy to limit these impacts is breathing new life into existing buildings, especially those with long-life durability, aesthetic character, and long-lasting exterior cores of steel and concrete. Known as adaptive reuse, this strategy takes an existing, unused building (think your nearby empty mall, a vacant corporate office, or a long-unused factory) and transforms it into a needed space that will bring value and vibrancy to its community.

Read More

NAIOP Expects Growing Weakness in Office Demand

Originally published by Mark Heschmeyer on December 12, 2022, for CoStar News.

Any increase in a key measure of office demand in 2023 isn’t likely to occur, according to the latest projections from the commercial real estate association, NAIOP.

The difference between tenant move-ins and move-outs of leased space could continue to slow into 2024 as net absorption is hampered by economic uncertainty, the trade group said.

The national office market absorbed 6.6 million square feet during the second and third quarters of 2022, but the vacancy rate continued its climb to 17.1%, the highest level since the third quarter of 1993, according to the NAIOP's "Office Space Demand Forecast" for the fourth quarter of 2022 published by the NAIOP Research Foundation.

Read More

New Report: Office Absorption Will Continue to Slow into 2023 Amid Economic Uncertainty

Originally published in NAIOP Research Foundation's Fourth Quarter 2022 Report. 

Absorption Will Continue to Slow into 2023 Amid Economic Uncertainty

The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q4 2022.

Key Takeaways:

  • Office market vacancy rates rose to 17.1% in the third quarter of 2022 as the completion of new space outstripped net absorption. This marks the highest vacancy rate since the third quarter of 1993.
  • Class A buildings continue to outperform the rest of the sector as tenants migrate to spaces that offer more flexible layouts and modern amenities.
  • Leading economic indicators and an inverted yield curve point to the growing risks of a recession in 2023. Occupiers are growing more cautious, opting to sublease space, and choosing smaller footprints when leases come up for renewal.
  • Given these trends, net office space absorption in 2023 is forecast to slow to only 8.1 million square feet for the full year, following an absorption of 7.1 million square feet in the fourth quarter of 2022.
  • Absorption is forecast to rebound in the first three quarters of 2024 to a total of 13.3 million square feet.

View Full Report

New Report: The Role of Data Analytics in CRE Siting, Design and Valuation

Originally published in October 2022, by Clifford A. Lipscomb, Ph.D., MRICS for NAIOP.

Industries are rapidly evolving as business processes grow more interconnected and automated. Data and analytics play an important role in information technologies and their interaction with the physical world, including emerging fields such as artificial intelligence, the Internet of Things (IoT), and virtual and augmented reality. Although commercial real estate (CRE) has been slower than other industries to adopt data analytics, some firms have identified several ways that data analytics can support land and building development and contribute to better project outcomes.

To gain a sense of how CRE firms are using advanced data analytics, the NAIOP Research Foundation commissioned this report to examine applications in site selection, design, and valuation for commercial buildings. The author conducted a secondary research and interviewed brokers, data providers, investors, developers and professionals at CRE technology firms.

Firms continue to rely primarily on traditional forms of market research when making investment and development decisions. Nonetheless, several commercial real estate technology companies have developed specialized software that draws from data analytics to support applications ranging from highest and best-use analysis to real-time building rendering. These emerging applications suggest that data analytics has the potential to add substantial value to new development projects through improved siting decisions and building design.

Download Report

Achieve Peak Operational Efficiency in Warehouse Design

Originally  published on November 15, 2022, by NAIOP.

NAIOP’s valuable 60-page e-book, “Rules of Thumb for Distribution/Warehouse Facilities Design, Second Edition,” allows you to gain a step up in today’s competitive marketplace. The e-book includes detailed instructions and diagrams on everything from site planning to floor slabs. Members save 50% off the list price!

Rules of Thumb for Distribution/Warehouse Facilities Design, second edition, has been extensively updated with new must-know information and detailed illustrations. Author and former principal with HPA, Inc., Byron Pinckert, has drawn on his firm’s decades of industry experience to explain best-practice methods for planning and designing warehouse facilities. This 60-page e-book addresses topics including site planning for truck and rail delivery, material handling equipment and racking systems layouts, as well as field-tested approaches to complex features such as floor slabs and roofs. Rules of Thumb for Distribution/Warehouse Facilities Design will help developers achieve peak operational efficiency for their tenants and build-to-suit clients.

Purchase Book

C-PACE Financing Finds Solid Footing in the Capital Stack

Originally published in NAIOP Development Magazine Fall 2022 Issue by Mansoor Ghori.

This rapidly growing alternative funding method can help developers meet a wide range of goals.

New financing vehicles can take time to achieve market acceptance, but with more than $3 billion in transactions since its inception more than 10 years ago, Commercial Property-Assessed Clean Energy (C-PACE) funding is now a go-to green finance alternative for many owners, investors, and developers.

Now available in 37 states and the District of Columbia, the special advantages of C-PACE’s long-term, low-cost, fixed-rate, non-recourse financing are making it a favored option over more expensive mezzanine debt or preferred equity. However, many CRE professionals are still unfamiliar with it. What is C-PACE? What makes it attractive to commercial real estate owners and developers? How have trends including the environmental, social, and governance (ESG) movement further fueled its adoption?

Read More

Is This the Month You Earn Your Certificate?

Students receive credit towards earning their certificate through core classes presented by the NAIOP Center for Education. So whether you want to enhance the value of your current career track or to increase your credibility in transitioning to a new career goal or area of interest, consider the professional benefits and competitive edge you'll gain by earning your NAIOP Certificate of Advanced Study.

Commercial real estate professionals wanting to advance their careers by earning their certificate can focus their efforts on either the development or finance tracks by pursuing a Certificate of Advanced Study in Commercial Real Estate Development or a Certificate of Advanced Study in Real Estate Finance.

Benefits

Professionals who are involved in all aspects of commercial real estate development benefit from the certificate. You benefit if you are a:

  • Developer/Owner
  • Investor
  • Lender
  • Broker
  • Industry Consultant/Advisor Planner
  • Architect
  • Real Estate Attorney
  • Civil Engineer/Construction Manager
  • Environmental/Sustainability Professional
  • Land Use Professional

Employers benefit as well from having motivated professionals on their team who they value for an ongoing commitment to learning. Both certificate programs follow a planned curriculum with a wide range of certificate course offerings to choose from.

A Busy Day for the Charlotte City Council

On Monday, November 7th, the Charlotte City Council held a marathon day of meetings.  Two of the committees held discussions on topics of significant interest to the real estate industry.  To catch up on anything you may have missed, please click on the information links below:

Transportation, Planning, and Development CommitteeAgendaVideo

(Presentations)

Housing, Safety, and Community Committee - AgendaVideo

(Presentations)

IRS and Treasury Introduce Regulatory Plan

Originally published on November 8, 2022, for NAIOP E-Newsletter.

While most of the political establishment in the nation’s capital is focused on the midterm congressional elections, federal agency staff are still moving forward on developing regulations from legislation enacted this year. The U.S. Department of the Treasury and the Internal Revenue Service last Friday issued their Priority Guidance Plan for 2022-2023, detailing their top regulatory priorities for the next year.

A major focus of the plan is the clean-energy tax provisions contained in the Inflation Reduction Act that was passed by Congress in August. These include measures on tax credits for electric vehicles, clean-energy manufacturing, and energy-efficiency incentives for commercial real estate and other industries. The plan also includes projects on the newly enacted corporate alternative minimum tax, the tax on corporate stock repurchases, and manufacturing incentives for the semiconductor industry.

The Treasury Department and the IRS will update the plan during the year to add additional items that become priorities as a result of legislative developments, or as a result of input from public comments on proposed regulations.

Priority Guidance Plan

A 1950s-Era Mall Turned Inside Out

Originally published in the Fall 2022 Issue of NAIOP's Development Magazine by Patrick Finucan, Sam Bennett, and David Kitchens.

To compete with the rise of e-commerce, traditional shopping malls are evolving to stay relevant and offer experiences that can’t be found online. Recognizing the central location of most malls, more owners are executing major redevelopments of these aging monoliths, transforming them into compelling, destination-worthy mixed-use environments that reflect the needs and wants of the communities they serve. 

One example of this redevelopment strategy in action is the recent renovation of Ballston Quarter, a formerly enclosed shopping mall in Arlington, Virginia, a few miles outside of Washington, D.C.

Over the past 70 years, the site where Ballston Quarter is located has gone through several iterations. From the rise of parking garages to the advent of experiential retail, this regional mall has lived through generations of retail revolutions and undergone two renovations to ensure its continued relevance. 

Read More

2022 NAIOP/CEL CRE Compensation and Benefits Reports Now Available!

Is your 2023 salary and bonus package competitive? Find out with the 2022 NAIOP/CEL Commercial Real Estate Compensation and Benefits Reports. These valuable reports (either Office/Industrial-Retail or Office/Industrial-Retail-Residential) enable commercial real estate businesses to stay current on salaries, bonuses, and benefits for CRE professionals from executive to entry-level positions.

The report includes:

Submissions from over 300 companies

Salary, bonus, incentives, and benefits for up to 200 positions

Read More

Exploring the Role of Data Analytics in Siting, Design and Valuation Decisions

Originally published in The Role of Data Analytics in Commercial Real Estate Siting, Design and Valuation Decisions by Clifford A. Lipscomb, Ph.D., MRICS in October 2022.

Industries are rapidly evolving as business processes grow more interconnected and automated. Data and analytics play an important role in information technologies and their interaction with the physical world, including emerging fields such as artificial intelligence, the Internet of Things (IoT), and virtual and augmented reality. Although commercial real estate (CRE) has been slower than other industries to adopt data analytics, some firms have identified several ways that data analytics can support land and building development and contribute to better project outcomes.

To gain a sense of how CRE firms are using advanced data analytics, the NAIOP Research Foundation commissioned this report to examine applications in site selection, design and valuation for commercial buildings. The author conducted a secondary research and interviewed brokers, data providers, investors, developers and professionals at CRE technology firms.

Firms continue to rely primarily on traditional forms of market research when making investment and development decisions. Nonetheless, several commercial real estate technology companies have developed specialized software that draws from data analytics to support applications ranging from highest and best-use analysis to real-time building rendering. These emerging applications suggest that data analytics has the potential to add substantial value to new development projects through improved siting decisions and building design.

View Full Report

State of Housing 2022 Summit

State of Housing 2022 Summit 
Tuesday, November 15, 2022, at 2:00 pm

In-person at The Dubois Center at UNC Charlotte Center City or via Zoom

The summit, in its fourth year, brings developers, government officials, and community stakeholders together for an exclusive first look at the "2022 State of Housing in Charlotte Report," which details:

  • A comprehensive inventory of the current housing stock
  • An analysis of housing affordability across all income levels
  • A high-level comparison of the Charlotte regional housing market
  • A comprehensive look at owner-occupied, rental, and subsidized housing in the eight-county Charlotte region
  • How the market has changed since the first State of Housing Report in 2019
  • How house price growth rates have fared during and after the COVID-19 pandemic
  • A long-term view of the dynamics of the housing market over the last two decades

Event Schedule

2:00 - 3:00 pm – 2022 State of Housing Presentation
  • Dr. Yongqiang Chu, Director of the Childress Klein Center for Real Estate, will present the 2022 State of Housing in Charlotte Report
  • Q&A with Dr. Chu
3:10 - 4:00 pm – Panel Discussion
  • Scott Wilkerson, Chief Investment Officer, Gingko Residential, LLC
  • Mark Boyce, Founding Partner, True Homes
  • Brenda Hayden, Realtor®/Broker with Keller Williams, 2022 Chair of the Real Estate & Building Industry Coalition
4:00 - 4:45 pm – Networking Reception
REGISTER NOW