Posted on November 21, 2018

The NAIOP Research Foundation has published the NAIOP Office Space Demand Forecast for Q4 2018.

Key Takeaways

• 2018 is expected to register nearly 13.0 million square feet of net absorption per quarter, significantly outpacing 2017 and 2016 when the quarterly figures averaged 9.5 million and 10.4 million square feet, respectively. 
• The current macroeconomic expansion will most likely continue beyond next summer, which will officially make it the longest sustained economic growth period in U.S. history. 
• However, the biggest limitation to the expansion of firms that use office space is likely to be the ability to hire qualified employees.

Regarding office space demand, the ultimate determinant of long-term growth will be how the business sector reacts to rising wages and interest rates.

View the forecast.

Posted on December 7, 2018

By Brielle Scott

Where are capital markets now, and where are we headed next?

At CRE.Converge 2018, experts engaged in a candid conversation about what they’re seeing in CRE investment, and shared their insights, strategies and predictions for the market. Moderator James Cassidy, executive managing director with Newmark Knight Frank, led the discussion.

Posted on November 8, 2018

By: Christopher Lee

Commercial real estate companies face big challenges in attracting and retaining exceptional professionals.

THE competition among real estate companies for talent heated up dramatically in 2017.  The “2017 NAIOP/CEL Commercial Real Estate Compensation and Benefits Report” reveals that demand for transformative leaders, next generation stars who could “lead” a division, department or practice over the next 10 to 20 years, has created a bidding war for exceptional talent.

Three Executive Positions Hardest to Fill

The three positions garnering the most attention were focused around leadership, knowledge and talent: Division/Department/Practice leader, Talent Management leader and Director of Research.

Posted on November 6, 2018

By Rick Steger

Imagine asking a picking robot in any language you want for a product on a shelf 40 feet above the warehouse floor. Sound too futuristic? Think again — this kind of technology and others are currently making their way into a warehouse near you.

Multilingual voice controls, the Internet of Things (IoT) and emerging technologies are streamlining the modern warehouse amidst a climate of rising costs, according to our new JLL report, Industrial Warehouse of the Future. Additionally, as operators introduce more of these efficient warehouse technologies, many are also incorporating quality-of-life enhancements to counteract labor shortages.

Posted on November 2, 2018

The NAIOP CRE Sentiment Index for September 2018 (a composite of nine survey questions), showed positive changes in seven of the nine questions that underpin the Index. This survey's 0.66 Sentiment Index reading is the highest posted since the full survey commenced in March 2016.

Key takeaways:

Posted October 26, 2018

Green roofs have been slowly catching on in the U.S., but more municipalities are encouraging or requiring their installation to reduce energy costs and absorb stormwater. According to an article from Governing.com, two companies are helping to guide green roof installation. Counterpointe Sustainable Real Estate and Green Roofs for Healthy Cities advise companies and municipalities on the best way to adopt green roofs. Additionally, The Living Architecture Performance Tool is a “rating system and best practice guide” to achieve “measurable and replicable performance benefits” when building green roofs.

San Francisco’s Better Roofs Ordinance and Denver’s recently adopted Green Roof Initiative require newly built buildings to dedicate a portion of their rooftops to vegetation or solar panels. Approximately 25 cities in North America have programs to encourage green roofs.

The Town of Huntersville is considering establishing its own local development review and permitting agency, bringing in-house a variety of services now provided by Mecklenburg County.

The main services the Town would take over from LUESA include development plan review; zoning, development and erosion control inspections; and bond administration. The Town Manager told the Board this week that five new positions would need to be created to provide these services.

Board members expressed their hope that bringing land development services in house would improve efficiency and reduce plan approval time for developers. REBIC is meeting with staff and Commissioners over the coming weeks to explore the proposal and ensure a handover doesn’t negatively impact development services.

The Board of Commissioners hopes to vote on the proposal in November and begin implementation by July 2019.

View original posting.

Posted on October 16, 2018

A recent New York Times article, The Most Important Least-Noticed Economic Event of the Decade, describes how in 2015 and 2016 a confluence of interconnected forces had a significant impact on the world economy and the presidential election but not many were aware that it ever happened. This slowdown went mostly unnoticed as it primarily affected the energy and agricultural sectors and their equipment suppliers, but it has some important political and economic implications.

It began in 2015 when the Chinese government, believing their economy was about to experience a credit bubble, imposed policies to restrain growth. This action caused a slowdown in the Chinese economy as well as in developing nations that relied on Chinese investment. Simultaneously, the Federal Reserve was ending its “era of ultra-easy monetary policy” while banks in Europe and Asia were lowering their rates. The value of the U.S. dollar increased, causing Chinese companies to become less competitive globally. When the Fed raised interest rates in December of 2015, it made financial conditions “tighter and therefore slow[ed] growth across big swaths of the world.”

This slowdown caused less demand for oil and other commodities such as metals and agricultural products. Emerging economies felt this pinch and falling prices and high debt loads among energy producers in the U.S. generated losses for investors and stoked fears about the overall stability of the global financial system. The Fed intervened in 2016 by deciding not to raise interest rates and reducing their expectations of how much they would raise rates over the remainder of the year. As a result, the dollar weakened, oil prices began a recovery and spending was growing again by summer 2016.

Posted on October 15, 2018

By Jennifer Lefurgy, Ph.D.

The use of technology in office building operations has come a long way from motion-controlled light sensors and key card entry systems. Building owners and operators are beginning to use an array of increasingly sophisticated software and hardware to gather more information about how their buildings can not only can work more efficiently, but give them insights into how to attract and retain tenants. The NAIOP Research Foundation’s new report, The Office Property and Big Data Puzzle: Putting The Pieces Together, by Kimberly Winson-Geideman, Ph.D., discusses what defines big data, how it is being used by building owners, and some of the issues those who are working with big data should consider.

Big data is defined as high-volume, high-variety and high-velocity information that is produced in either structured formats (e.g., sensor data) or unstructured formats (e.g., pictures, text). The sheer influx of big data can be overwhelming for many companies; they often choose to sit on the data they collect with no concrete plans to use it. Therefore, some firms, particularly those without the resources to sift through large amounts of data, risk missing valuable information that could improve their bottom line and position them favorably in an increasingly competitive market.

Click here to read more.

Posted on October 9, 2018

Recruiting and retaining top talent has become essential in today's highly competitive marketplace.

Is your 2019 salary and bonus package competitive? Find out with the 2018 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 executive to entry level positions. The reports include submissions from 400 companies; salary, bonus, incentives and benefits for 200 positions; and data from 100,000 distinct jobs in the office/industrial, retail and residential property sectors.

Posted on September 14, 2018

Earlier this week, the Board of Directors for the Charlotte Regional Partnership and the Executive Committee of the Charlotte Chamber voted unanimously to authorize their CEOs and staff to engage in the steps necessary to formally combine the organizations. The Boards of both organizations are expected later this year to act on a formal recommendation from their respective Executive Committees to finalize the combination. It is anticipated that should the Boards vote to ratify the recommendation, the new enterprise will begin operations on January 1, 2019. We are providing the media this afternoon with a limited joint statement, but we believe it is important for you to hear this news from us first.

The decision to combine the two organizations is rooted in a belief that the vision and mission of the two organizations naturally align with one another and combining the two will sustain and enhance the economic growth, prosperity and global competitiveness of the Charlotte region. As part of an integration effort, the mission statements of each organization will be reviewed with an intent to build on their respective foundations to determine the mission and vision of the new organization.

The intent of the combined enterprise will be to build on the experience and passion of both organizations to galvanize the 16-county Charlotte region through a shared vision and coordinated efforts. The business leaders in our community are committed to building the best enterprise in the country in order to drive long-term growth and a vibrant economy. A unified enterprise provides a clear path and single development team for site selectors and business leaders and owners who are considering a corporate re-location or business expansion. 

Posted on September 6, 2018

Did you know NAIOP has a glossary of commercial real estate terms available online for your reference anytime? Bookmark the page for whenever you come across a phrase you don't know or need a refresher.

Click here to view CRE Glossary

Posted on September 4, 2018

Written By: Dr. Hany Guirguis and Dr. Joshua Harris

The forecast for demand for industrial space has risen because of increased expectations of broad macroeconomic growth and job generation for the remainder of 2018 and 2019. According to Dr. Hany Guirguis of Manhattan College and Dr. Joshua Harris of New York University, quarterly net absorption is expected to increase to an average of 60 million square feet for the latter half of 2018 and then moderate to 56 million square feet per quarter in 2019.

Advance indications for gross domestic product (GDP) growth for the rest of 2018 show consensus forecasts approaching annualized growth of 4.0 percent for the second quarter, which could result in sustained growth of 3.0 percent or more for the rest of the year and into 2019. Higher oil prices are a leading cause of increased business investment because as oil prices rise, there is more incentive to increase energy production and commence energy exploration – activities that significantly stimulate the overall economy. Another major force at play is consumer spending, as e-commerce continues to generate demand for industrial space.

Click here to download the report.

Click here to read more.

Posted on August 7, 2018

The Charlotte Planning Department is undergoing a comprehensive reorganization, in an effort to streamline the development approval process and reduce the number of conflicts that arise between final rezoning and site plan review.

The initiative is moving forward even as Charlotte’s Unified Development Ordinance takes a step back, to allow staff to begin work on a Comprehensive Plan to guide the City’s growth over the next two decades.

Posted on July 16, 2018

The number of available U.S. jobs now exceeds the number of people out of work and seeking employment. At the end of April, job openings stood at 6.7 million while the number of unemployed reached 6.3 million. The June 2018 Marcus and Millichap Research Brief finds that an effect of a competitive labor market is that office-using employment is driving down office vacancy rates, and over the past 12 months, the professional and business sector has been expanding at a faster pace than overall employment, driving up office demand. The professional and business sector added almost 500,000 jobs and grew at 2.5 percent compared to the national rate of 1.6 percent. The increased hiring, according to the report, drove down the national office vacancy to 13.8 percent in the first quarter of 2018.

Posted on July 13, 2018

A recent report by MetLife states that the expansion of ridesharing, autonomous vehicles and electric vehicles will result in “highly accessible, highly efficient and comparatively inexpensive transportation” over the next decade. Researchers believe that alternative transportation, including ridesharing, will partially substitute public transportation in some areas of the U.S. and complement it in other areas, while also bringing transit access to areas not served by public transportation. The report concludes that the greater acceptance of ridesharing will lead to an increase in value for development sites with good access to uncongested roadways but limited access to public transportation.

Posted on July 5, 2018

An infographic by Faith Hope Consolo, chair of the retail sales and leasing division at Prudential Douglas Elliman, finds that “food is the new fashion.” Younger shoppers are more interested in “eating while shopping than their parents and grandparents,” and this behavior is leading to a trend in “eatertainment”-style properties. The report predicts by 2020, the number of food halls of 10,000 to 50,000 square feet in North America could reach 300 (up from 100 in 2017). Additionally, the report recommends a new rule of thumb for malls: 70 percent of their space toward food, entertainment and lifestyle experiences, while the remaining 30 percent should be dedicated to retail.

Posted on June 29, 2018

By Clay Edwards

Though the real estate industry has seen a development rebound over the past decade, rising construction costs are weighing down the buoyant market. The persistent skilled labor shortage makes staffing and maintaining sites expensive. Materials are pricier, and now tariffs on steel, aluminum and lumber imports may only make the problem worse. At the same time, interest rate growth is converging with all these issues, making project financing more difficult to obtain and more costly.

A recent survey of top construction lenders conducted by Construction Lender Risk Management Roundtable found that almost two-thirds said they saw projects running over budget either more often or much more often, and 87 percent said they saw projects running behind schedule, driving up the risk of project defaults and unfinished sites.

Click here to read more.

Posted on June 26, 2018

pproved a budget for FY 2018/2019 that includes an historic investment in Affordable Housing bonds — assuming voters approve them in a November referendum.

The $50 million in Affordable Housing Bonds are part of a $223 million bond package that also includes $118 million for streets and sidewalks, and $55 million for neighborhood improvements. Voters will be asked to approve the bonds on November 6th, and REBIC will partner with the Charlotte Regional REALTOR® Association and the Charlotte Chamber to advocate for their passage through a wide-ranging community campaign.

The budget approved by Council also includes the following:

Posted on June 22, 2018

The Matthews Town Board this week held a public hearing on a proposal to create a new Zoning Overlay District that would make the land use and development policies in three Small Area Plans enforceable on all new development, regardless of whether or not a rezoning is involved.

REBIC spoke against the proposal, as did a small group of property owners who shared our concerns about the restrictions the Overlay would place on their property. The Overlay would impact all parcels in three Small Area Plans adopted by the Town between 2014 and 2017:

• The Monroe Small Area Plan (page 118 of the Town’s Land Use Plan), stretching northward along Monroe Rd between Hwy 51 and the Town limits;
• The Entertainment District Small Area Plan, covering a large geography around the Matthews Sportsplex; and,
• The E. John St./Outer Loop Small Area Plan (page 172 of the Town’s Land Use Plan), covering an area south of the I-485 / E. John St interchange.

While a Land Use Plan serves a policy guide, a zoning overlay district has the force of law on all property in its defined geography, and supersedes any zoning rights in the underlying district. The proposed Overlay District would incorporate policies ranging from building design to lot setbacks, and apply to both new development and redevelopment in all three Small Area Plan geographies.