originally published by ROCHELLE BRODER-SINGER for NAIOP National
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
originally published by Rochelle Broder-Singer for NAIOP National
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.
originally published by Brielle Scott for NAIOP National
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.
originally published by Trey Barrineau for NAIOP National
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.
originally published by BRIELLE SCOTT for NAIOP National
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.
originally published by K.J. Jacobs for NAIOP National
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.
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.
Originally published for NAIOP
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.
Read the full article here!
Read the full article here!
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.
Read the full article here!
Read the full article here!
Originally published for NAIOP's Development Magazine Summer 2021 Issue by Trey Barrineau.
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.)
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.
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.
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.
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.
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.
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:
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.
Originally published by Shantala Weiss for NAIOP's Development Magazine.
In the wake of COVID-19, workplaces are presented with a unique opportunity to shape corporate culture's future and use physical space to foster a sense of community and innovation that can’t be offered when working from home. Building elements that align with the goals of active, sustainable, and universal design have the potential to play a crucial role in post-pandemic commercial real estate.
COVID-19 has challenged vertical transportation strategies in buildings, which have historically relied on elevators. Ongoing concerns about physical distancing and touching surfaces mean that people may be reluctant to use elevators. A well-dimensioned stair offers enough space for people to ascend and descend simultaneously, giving occupants more room to move than a narrow fire escape or elevator.
“COVID-19 noticeably accelerated the trend of monumental stairs in offices and other commercial spaces,” said Jim Admiraal, executive vice president of sales and preconstruction at Synergi, a national stair design-led subcontractor. “We saw an immediate spike in design plans featuring stairs as a primary vertical mode of transport for major projects all over the U.S.”
Originally published by Hany Guirguis, Ph.D., Manhattan College and Michael J. Seiler, DBA, William & Mary in August 2021
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.
