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Can Industrial be a Good Neighbor in Residential Areas?

 

 

Industrial

By Trey Barrineau

Industrial properties are often built near neighborhoods, but that isn’t always popular with the residents, who have legitimate concerns about noise, traffic and pollution from the increased volume of trucks and vans.

A recent NAIOP online panel discussion examined how developers can work with local communities to address these worries through outreach and engagement, as well as with design and technological innovations.

“Education is key to establishing that relationship early on,” said Sven Tustin, executive vice president with Conor Commercial, who moderated the panel. “The developer has to listen to concerns. Residents look at a site plan that shows 200 dock doors, and they assume that there will be 200 trucks coming in and out 24/7.”

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CRE Industry Steps Forward For Some Women, Stalls For Others

Originally published on September 6, 2022 by Patrick Sisson for Bisnow National.

Women in commercial real estate, particularly those in the upper echelons of management, have made gains when it comes to equity and pay parity in the workplace, but talent pipelines, mentorship and diversity in leadership ranks still leave something to be desired.

That’s according to a pair of new surveys on the careers and perceptions of women in commercial real estate as the industry goes through a generational upheaval in the aftermath of a pandemic and racial reckoning that have changed the way workplaces work.

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Top Five US Metros for Life Sciences In 2022

Life sciences

TOP FIVE US METROS FOR LIFE SCIENCES IN 2022

By 

Growth in the life sciences sector has driven demand in recent years for both commercial real estate space and labor to accommodate this specialized sector. A new study by commercial real estate platform CommercialCafe set out to identify the best metros for life science companies in 2022 and assessed more than 40 metropolitan statistical areas (MSAs) in terms of regional talent pool and workforce; accessibility of local office markets; the degree of availability of existing dedicated property; as well as the state of the local pipeline aiming to expand local life sciences capacity.

Boston took the number one spot on the list, with San Francisco in second place, then San Diego third, New York fourth, and Washington, D.C., rounding out the top five.

A longtime “flagship market” for life sciences, the Boston metropolitan area remains a leader in the sector. The MSA stood out for several key indices scored in the ranking: Boston boasts the largest labor pool among the metros analyzed, as well as the largest life sciences real estate market — nearly 25 million square feet of existing dedicated property, of which just under 14 million square feet was LEED-certified space. What’s more, with an additional 23.8 million square feet of new life sciences developments in the pipeline — under construction, as well as in the planned and prospective stages — Boston seems firmly placed at number one for the foreseeable future.

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The Unexpected Challenges (and Solutions) of Multilevel Warehouse Design

Costco
  • By Russ Hazzard, Jonathan Chang, Development Magazine (photo of Vancouver, B.C. Costco by Raef Grohne)

Experiences in Canada and Asia provide case studies for building these complex properties.

Over the past 15 years, multilevel warehouses — particularly those used for retail purposes — have been a growing trend across Asia and, more recently, in the United States. However, some challenges accompany their design and construction that are not encountered in the traditional approach to large-format retail. With operational criteria at the top of the list, these challenges vary heavily based on several factors, including location, footprint, environment, jurisdictional requirements, and cultural and community influences.

The increase in demand for and construction of multilevel warehouses has unearthed numerous unique considerations not present in traditional warehouse environments. These challenges — each intricate in their own right — have required creative solutions and careful programming to successfully bring each project to life.

Parking and Vehicle Flow

One of the most critical design challenges for vertical warehouses is the traffic flow of vehicles and the structure’s parking. While the goal is to keep the sales level on a single floor for ease of operations and the consumer’s shopping experience, parking for multilevel warehouses can reside either above or below grade. Both options have pros and cons: Below-grade parking requires excavation, which can increase costs and complications. However, it provides a solution for lot coverage or height restrictions in situations where those apply. Above-grade or rooftop parking is preferred as it saves both construction time and money.

Customized resolutions to optimize vehicle traffic flow and increase ease of parking have also been employed, varying from warehouse to country to country. For example, in Sinjhuang, Taiwan, indication lights for open parking spaces are used to determine capacity at a glance. In Suzhou, China, car ramps at the entrance steer customers directly up to each floor, allowing them to bypass complete levels. Larger-than-regulation parking spaces — typically very compact in Asia — are also used, granting customers peace of mind. There is no need to worry about maneuvering around tightly packed vehicles in the garage. As an added benefit, large spaces also increase vehicle flow; running in and out of an area is completed in one move vs. two or three.

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City Council Members Meet with NAIOP Charlotte for LWAL

Last week, NAIOP members met with City Council Candidates Dimple Ajmera and Marjorie Molina to discuss important issues impacting Charlotte’s CRE industry.

LWAL two

The Lunch with a Leader series provides NAIOP Charlotte members an exclusive opportunity to meet and interact with key leaders in our community. Look for upcoming NAIOP Charlotte fall events here.

LWAL one

UDO: Planning Committee to Review and Recommend

Compiled from REBIC, staff reports

REBIC’s Rob Nanfelt reported Tuesday that the City’s Planning Committee is taking up the matter of the proposed Unified Development Ordinance. Next month, committee members will take any additional recommendations before the third/final draft.

Last week, the Charlotte City Council received comments from the community during a public hearing on the proposed UDO. Click here to view the resolution. The entire hearing is available to view here – beginning approximately at the 2:51:30 mark.   

Next is a review and recommendation from the City’s Planning Committee scheduled to begin Tuesday, July 19, at 5 p.m. Those interested can view it on the City’s Planning Department YouTube Channel. The complete agenda and meeting packet is available here.

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Charlotte UDO Public Hearing Held Monday

UDO

On Monday, Charlotte's proposed Unified Development Ordinance (UDO) public hearing took place in the City Council Chambers. 

Many in the audience turned out for the Public Forum portion of the plan, but several neighborhood activists were also on hand. That group mainly wanted to challenge the ordinance provision allowing for higher-density dwellings in single-family neighborhoods. REBIC supports a wide range of housing types and believes the development of additional units is necessary to meet current and future demand.

The City Council also voted 9-2 to adopt a policy providing source of income protections to prospective renters of properties developed using a taxpayer-provided subsidy, conveyance of property, or infrastructure reimbursement incentive such as a Tax Increment Grant (TIG). The policy seeks to promote the use of Housing Opportunity Vouchers that some property managers and landowners have been reluctant to accept. Proponents have argued the policy is necessary to eliminate a discriminatory practice. Opponents are concerned it will result in less affordable housing units for future development.

More from the meeting

The Charlotte City Council received comments from the community on Monday at a scheduled public hearing on the proposed Unified Development Ordinance (UDO). Click here to view the resolution. The entire hearing is available here - beginning approximately at the 2:51:30 mark.   

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RECAP – Industry Forum: Charlotte’s UDO and Next Steps

UDO dom photo

June 23, 2022:  More than 100 commercial real estate professionals registered to hear a panel of local industry professionals share their feedback on the latest draft of Charlotte’s Unified Development Ordinance (UDO). Roger Manley (BB+M Architecture), Jon Morris (Beacon Partners), Tim Sittema (Crosland Southeast) and moderator Rob Nanfelt (REBIC) discussed their participation and impacts the new ordinance will have on the future of commercial real estate development.

Some of the highlights included:

Affordability after the UDO's implementation.  Yes, development and housing costs will go up. But the new draft should offer more flexibility.

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Vacant Storefronts Can be Repurposed into Retail Incubators

Retail incubator

Vacant Storefronts Can be Repurposed into Retail Incubators

They can provide an immediate boost in shopping districts and grow future businesses into long-term tenants.

  • Written by Ilana Preuss, Development Magazine

The COVID-19 pandemic has left America’s retail districts pockmarked with empty storefronts, but there is a creative solution. These vacant spaces, which often can be purchased or rented at reduced prices, are prime targets for conversion into retail incubators.

Retail incubators, like business incubators, nurture new or small-scale entrepreneurs during the startup phase. They mitigate some of the challenges of opening a business by providing financial and technical assistance, such as the basics of marketing and business plans. Tenants typically share space, ideas and operating expenses in locations that they could not otherwise afford. Many spaces have flexible or temporary lease terms. Some allow for small-scale manufacturing and hold community events, such as product demonstrations, fashion shows and art openings.

In addition to real estate, retail incubators provide fledgling businesses with valuable resources such as technical and financial assistance.  

According to the U.S. Chamber of Commerce, new business applications in the United States set an all-time record of 5.1 million in 2021. At the same time, the pandemic has led to consolidation of space and locations by major retail brands, which reduced the prospect of attracting businesses. The challenge for small businesses is they can’t immediately fill the footprints of major store closings. However, they can make temporary use of retail space to establish their businesses, and occupying formerly abandoned stores can help energize struggling downtowns.

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Permit Reform Legislation Advances Following NAIOP’s N.C. Advocacy Day

BY TOBY BURKE,   

Members from NAIOP’s three chapters in North Carolina traveled to Raleigh last week to advance the priorities of the commercial real estate development industry in meetings with state lawmakers. The top priority for NAIOP of North Carolina, the state alliance of NAIOP chapters, is the passage and enactment of House Bill 291, permit reform legislation sponsored by State Representative Jeff Zenger.

Local building permits are an essential and fundamental requirement for the development and improvement of commercial and residential properties. However, the processes for obtaining these permits can vary by city and county in North Carolina. These variations lead to uncertainties and delays in projects moving forward, which can impact the costs, financing and contractional relationships with contractors and providers of construction equipment and materials.

The enactment of House Bill 291 would bring reforms to the permitting process similar to those advocated by our local chapter in Georgia which were ultimately enacted into law in that state. These reforms to the local permitting process bring more predictability and accountability, reducing uncertainty and unnecessary delays. Core elements of the bill include:

  • A local permitting entity has 21 days in which review the plans.
  • During the 21 days, the local entity shall resolve issues associated with the application and may seek additional information from the applicant.
  • If additional information is needed or the application must be resubmitted, the permitting entity has 15 days from receipt of the additional information to issue a permit.
  • If the local permitting entity is unable to meet the time parameters, the applicant or inspections department may seek approval from a certified third-party (engineer) or the Department of Insurance.

The North Carolina House of Representatives passed House Bill 291 in May of 2021 on bipartisan vote of 79-33, sending the bill to the state Senate. The legislation was eventually sent to the commerce and insurance committee in March for their consideration. Our meetings last week focused on urging Senate leadership and the committee chairs to move this important legislation forward before adjourning for the year as early as the end of June. NAIOP of North Carolina’s advocacy played a key role in HB 291 being scheduled the following day for a hearing before the insurance committee the subsequent week.


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Construction Sites Build a Circular Economy

Genesis Marina

 Phase 3 Real Estate Partners’ Genesis Marina, a 550,000-square-foot life science development south of San Francisco, is the nation’s first precertified TRUE zero-waste project. Photo courtesy of Phase 3 Real Estate Partners

 

By NAIOP Development writer Alice Devine

 

Zero-waste efforts attract greater attention, including a new certification program. 

New buildings can create architecturally pleasing skylines and yet leave construction debris in their wakes. In fact, the U.S. Environmental Protection Agency estimates that construction and demolition debris accounts for more than twice the amount of generated municipal solid waste in the U.S. 

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Economic Impacts of Commercial Real Estate, 2022 U.S. Edition

 

originally published by Brian Lewandowski, Jacob Dubbert, Michael P. Kercheval, Ph.D., and Richard Wobbekind, Ph.D. with permission to repost.

NAIOP Economic Pic

Development and construction of new commercial real estate in the United States – office, industrial, warehouse, and retail – generates significant economic growth at the state and national levels. This annual study, “The Economic Impacts of Commercial Real Estate, 2022 U.S. Edition,” published by the NAIOP Research Foundation, measures the contribution to GDP, salaries and wages generated and jobs supported from the development and operations of commercial real estate.

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The Outlook for Capital Markets and Industrial Real Estate

 

originally published by SHAWN MOURA, PH.D. for NAIOP National

Capital Market

Low cap rates and rapidly rising rents reflect industrial real estate’s status as the leading sector in commercial real estate development. Record levels of capital are flowing to industrial real estate while tenants are willing to pay higher rents to secure additional inventory and shorten delivery timelines.

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Vacancy Rates at Less Than 15% and a Rise in Average U.S. Office Listing Rates

 

originally published by COMMERCIALEDGE TEAM for NAIOP National

Office Pic

The Delta variant of COVID-19 has continued to delay the return-to-work plans of many companies. Still, rising vaccination rates and declining case numbers have provided hope for many companies. Anyone worried about the future of office work can look at the continual investment of big tech into the industry to feel confident that offices are far from a thing of the past.

Read the Full Article Here!

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.

Read the Full Article Here!

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. 

Read the Full Article Here!

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. 

See the Full Article!

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.

Read the Full Article Here!

 

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.

Read the full article here!