Originally published on November 9, 2020, by Tom Acitelli for the Commercial Observer.

The incoming Biden administration‘s decisions on a range of issues could impact the commercial real estate market and industry directly. Here are the four areas to watch as the former vice president transitions to the presidency this winter.

The pandemic

The coronavirus pandemic is by far the biggest challenge that commercial real estate faces. The virus has emptied offices and hotels; caused a spike in loan delinquencies and a drop in real estate investment trusts’ stock performances; tanked leasing and sales; and banged perhaps the loudest death knell yet for brick-and-mortar retail. Until the coronavirus is under control, industry analysts, owners and brokers say a return to (a new) normalcy in the market and the industry is out of the question.

President-elect Biden is vowing a much more direct federal attack on the virus. President Trump in the closing days of his campaign said repeatedly that the nation was “rounding the turn” on the pandemic. The country has instead recorded more than 90,000 new coronavirus cases a day since Nov. 4, the highest figures of the pandemic.

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Originally published by Marc Stiles on November 5, 2020, for Puget Sound Business Journal 

The tech-fueled evolution of industrial real estate is creating opportunities for underused assets, large and small. The possibilities seem almost endless.

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Originally published on November 17, 2020 in NAIOP's E-Newsletter.

The new 2020 NAIOP/CEL Commercial Real Estate Compensation and Benefits Reports are now available for purchase online. Each includes salary, bonus, incentives, and benefits for up to 200 positions, and data from 100,000 distinct jobs in the office/industrial, retail and residential property sectors. Data is sortable by company size, type, specialization and more.

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Originally published on November 16, 2020, by Linda Strowbridge for NAIOP's Blog

In “Midyear Economic Impacts of COVID-19 on the U.S. Commercial Real Estate Development,” commissioned by the NAIOP Research Foundation, Stephen S. Fuller, Ph.D., professor emeritus at George Mason University’s Schar School of Policy and Government, detailed changes in different commercial real estate sectors and described how CRE could drive the recovery of the U.S. economy.

We asked him for further insights on what the government could do to facilitate growth in commercial real estate and what factors could influence the pace and strength of the recovery of the U.S. economy. 

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Originally recorded on November 11, 2020 for NAIOP Center for Education.

The Advantage Series is an exclusive member benefit, delivering expert insights into the latest research to help you make informed business decisions.

On November 11th, this webinar provided members with an update on federal legislative activity and executive agency actions affecting the commercial real estate industry, with a specific focus on NAIOP’s top public policy and legislative priorities. Aquiles Suarez, NAIOP’s senior vice president for government affairs, and Alex Ford, NAIOP director of federal affairs, will discuss issues including tax legislation, infrastructure, environmental issues, and federal regulatory matters.  Attendees can pose questions regarding federal issues affecting their business and gain insights to prepare them for any future regulatory or legislative challenges.

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Originally published on November 10, 2020, by NAIOP Source Weekly E-News.

Is your 2021 salary and bonus package competitive? Find out with the 2020 NAIOP/CEL Commercial Real Estate Compensation and Benefits Reports.

These valuable reports enable commercial real estate businesses to stay current on salaries, bonuses, and benefits for CRE professionals from executives to entry-level positions.

The reports include:

Originally published in NAIOP's Development Magazine Fall 2020 Issue by Ray Kimsey. 

COVID-19 could spur greater interest in transforming suburban office parks into mixed-use developments.

Suburban office parks were already experiencing a renaissance in the years leading up to the COVID-19 pandemic. A combination of rising commercial and residential rental rates in urban core areas and the desire of millennial workers to reduce their commutes had led real estate developers to transform older office parks into competitive properties by offering the right mix of uses and amenities.

The pandemic, which may have effectively reset corporate America’s work/life balance equation, has given new impetus to this strategy. Nearly a third of Americans are considering moving to less densely populated areas in the wake of the pandemic, according to recent data from a Harris Poll conducted among 2,050 U.S. adults from April 25-27. This could significantly impact the attitudes of both office tenants and residential buyers regarding location and amenities. It would also be happening as futurists predict a “new normal” following the pandemic where remote working could become more accepted. In addition, even when restrictions are lifted, there will be an emphasis on outdoor amenities that support social distancing. 

As commercial real estate leaders plan for the future, many are evaluating changing user preferences and are looking for creative solutions to meet the needs of changing demographic preferences. Here are some insights into reimagining aging office parks by realigning space and tenant engagement strategies through the introduction of residential and mixed-use elements.

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Originally published on Monday, November 2, 2020, by the Real Estate & Building Industry Coalition. 

REBIC is seeking feedback from its members on the recently released City of Charlotte 2040 Plan, Tree Canopy Action Plan, and forthcoming Unified Development Ordinance.

• Charlotte 2040 Plan
• Tree Canopy Action Plan
• Charlotte UDO

Please take some time to let us know what feedback you have on these plans, and whether you are interested in being involved in our advocacy efforts moving forward.

Take the Survey

Originally published by Ken Simonson in NAIOP's Fall 2020 Issue.

The outlook remains hazy as COVID-19's broad impacts disrupt the country.

After more than six months of pandemic-related turmoil, there is no sign that the outlook is getting clearer for construction spending, labor, or materials cost and deliveries. Additionally, the back-pedaling in states that had reopened has made the uncertainty about the future even greater.

Like many sectors, construction experienced enormous upheavals in the spring. After employment reached a 13-year high of 7.6 million in February, the industry lost more than 1 million jobs during the next two months. The industry added back 611,000 jobs in May and June as construction firms made rapid use of Paycheck Protection Program loans to recall furloughed workers and restart projects in states and cities that ended shutdown orders. Despite the rebound, total construction employment in mid-June (the monthly employment counts are based on the payroll period covering the 12th of each month) was nearly half a million jobs shy of the February level.

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Negotiations on an economic stimulus bill remain at an impasse a week before the November U.S. presidential election, with both sides blaming the other for the lack of agreement. While saying in television interviews over the weekend that “I never give up hope,” Speaker of the House Nancy Pelosi’s comments made clear that Congress is still not close to agreement on a variety of issues. “They keep moving the goalposts. Every time they say we move the goalposts, that means they’re projecting what they did,” Pelosi went on to say. White House Chief of Staff Mark Meadows made a similar accusation in an earlier interview.

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Originally published by Steve Weikal and James Robert Scott in October 2020 for NAIOP Research Foundation.

The rapid expansion of e-commerce sales has spurred demand for industrial real estate, including for large regional distribution centers and small fulfillment centers located in urban and suburban areas. The acceleration of delivery timelines has also reshaped industrial building interiors, as online retailers and third-party logistics firms have made substantial investments in new technologies such as collaborative robots and automated storage and retrieval systems. In addition to increasing the productivity and profitability of industrial assets, new technologies are also allowing retailers and building owners to add distribution uses to existing retail properties.

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Originally published on October 16, 2020, for NAIOP Research Foundation.

NAIOP Research Foundation | October 2020 Update

Hear about the latest work of the NAIOP Research Foundation and meet its new governors. 

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Originally published by Trey Barrineau, Daniel Levison, Turner Levison for NAIOP 2020 Issue. 

COVID-19 is forcing the industry to embrace teleworking and a wide array of digital tools.

The COVID-19 pandemic has introduced a great deal of uncertainty into the commercial real estate industry. It has also forced CRE companies to come up with solutions to keep operations running when it’s not feasible for everyone to be in the office. That includes adopting new technologies and embracing remote work.

“I think there will be lots of new investments in collaborative technology to enhance the growth in working remotely,” said Gregory May, executive vice president and West Region market leader for Newmark Knight Frank, during a NAIOP webinar this spring. “As brokers, we’re used to working remotely. About 90% of our day is out of the office or in our cars. I think it’s something that’s here to stay.”

Originally published on October 19, 2020 by Sanjay Rishi for NAIOP.

As the greatest work-from-home experiment ever continues, many companies are starting to think beyond how and when their workforce will return to the office and tackling a much broader issue: what role the office will play in their corporate strategy going forward.

The past six months have proven that many tasks – and in some cases complete roles and organizations – can be done virtually with little negative impact on productivity and job satisfaction. Yet, employees overwhelmingly want to return to the office, at least in some capacity. A work from home study conducted by Gensler from April to May indicated that, although most people (70%) want to return to the office for the majority of their week, 30% want a flexible work arrangement.

The role of the office in the future will vary from company to company, based on their unique culture and trends within their broader industry, but employee sentiment points to the office retaining its standing as a key driver of culture and magnet for in-demand talent. However, the shift to remote work will have wide-ranging implications, including where offices are located, how they are designed, who utilizes them and when they are occupied.

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Originally published by Dan Spiegel for Commercial Property Executive on October 9, 2020. 

The COVID-19 pandemic accelerated trends in our work and home lives that were already underway. For many office workers, employers that previously embraced some workplace flexibility, permitting employees to work from home on occasion, are now experimenting with full-time flexible models and rethinking the physical workplace.

Similarly, the migration from in-store to online sales—that was already trending for office supplies and shoes—now includes an increasing percentage of online sales of groceries, home furnishings, and many other consumer goods. Beyond online shopping, COVID-19 is accelerating retail trends regarding the customer experience and use of space. 

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Learn about real estate repurposing, relocating people and companies, reshoring, remote everything, robots, ROI, and rising risk during this virtual event on the state of the economy and gain insight into what it will now look like over the next couple of years.

Submit questions in advance here.

Our Presenter

Ted Abernathy is the Managing Partner of Economic Leadership LLC, a consultancy that is currently working in more than a dozen states to develop economic and workforce strategies. Ted has 35 years of experience in directing economic development and workforce development programs. From 2008-2013, Ted was the Executive Director of the Southern Growth Policies Board, a 42-year old public policy think tank that provided economic development research, strategy, and marketing advice, to states and communities across the South. He also served as an economic development policy advisor to the Southern Governors Association. Read More.

Originally published by Cairg Meyer and Rich Thompson for NAIOP's blog on October 5, 2020. 

Investing in industrial real estate was never considered as attractive as office or retail in the past. However, this dynamic has changed, in large part, due to the growth of e-commerce. Investing in industrial real estate is red hot and the continued growth of consumer online shopping drives the need for additional warehouse space. Industrial real estate – including plants, warehouses and distribution facilities – has been the investment “asset class of choice” the past several years and demand is on the rise.

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Originally published for the Wall Street Journal by Inti Pacheco on October 6, 2020.

The coronavirus pandemic accelerated a major shift in the retail industry. Traffic to stores evaporated. Online credit-card transactions soared. E-commerce sales in the second quarter rose by 44.5% compared with the same period in 2019 and they now make up 16% of all U.S. retail sales, according to the Commerce Department.

Consumer spending has picked up since many cities and states began lifting lockdown restrictions and allowing stores to reopen in May, but only some sectors have regained lost ground. 

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The Real Estate and Building Industry Coalition (REBIC) has released the 2020 General Election Voter Guide. Make sure you know where to vote early! Find your local polling place with the North Carolina State Board of Elections and download the voter guide by clicking the image below.

2020 REBIC General Election Voter Guide

Originally published on October 2, 2020, by Shawn Moura, Ph.D. for NAIOP.

Last week, NAIOP conducted its sixth monthly survey of its U.S. members on the impacts of COVID-19. Since April, the association has examined the pandemic’s effects on commercial real estate and how firms have responded. Respondents to the survey report continued, gradual improvement in deal activity, but also indicate that the coronavirus is having a more pronounced effect on ongoing development projects than in prior months. In addition, more building owners are responding to the outbreak by offering tenants a broader range of rent relief arrangements and by increasing building safety precautions.

The survey was completed by 203 NAIOP members between September 15 and 18, 2020. Respondents represent a range of professions, including developers, building owners, building managers, brokers, lenders, and investors.

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