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The Impact of Proposed Air Quality Control Measures in Albuquerque

Originally published on July 18, 2023, by Rhiannon Samuel for NAIOP.

A new proposed rule change to how air quality permits are issued in the Albuquerque metro has many economic development organizations, associations and businesses very concerned. While the goal of protecting vulnerable communities and improving air quality is necessary, we must also carefully consider the impact of rigid regulations on economic development.

Proposed Rule Change: An Overview

In November 2022, several local activist organizations submitted a letter and proposed rule change to the Albuquerque/Bernalillo Air Quality Control Board, aiming to address the concentration of air pollution in low-income and minority neighborhoods. The proposed changes grant the board the authority to enforce greater emission monitoring and reporting requirements than what the Environmental Protection Agency requires on any entity emitting air contaminants. It also circumvents the board’s decision and appeal process to automatically deny certain permit applications. Those triggers to automatically deny applications include areas that will impact an “overburdened community,” where if one characterization is true, then the permit cannot be approved.

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The Future of Electric Vehicle Charging: A Guide for Commercial Real Estate Developers

Originally published on July 27, 2023, by Trey Barrineau for NAIOP.

Electric vehicle (EV) use is accelerating, and commercial real estate owners can reap significant benefits from installing EV charging infrastructure at their properties. A recent NAIOP webinar explained how EV charging station implementation can attract and retain tenants, improve the property’s environmental score and generate new revenue streams.

According to Bryce Christensen, P.E., a senior partner with Kimley-Horn, EVs are becoming more affordable. Of the more than 40 options currently on the market, he said that 10 now cost under $40,000, and nearly every major automaker made public commitments to EVs, which should boost adoption by helping bring prices down even more.

“It’s no secret that the market share of electric vehicles in the United States and worldwide is trending up,” Bryce said. “The demand is rising, and many potential consumers are just waiting for more charging infrastructure before committing to going all electric.”

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LISTEN: A Closer Look at CRE Construction Trends

Originally published on July 17, 2023, by the NAIOP Podcast: Inside CRE.

Marc sits down with Richard Branch, chief economist at Dodge Construction Network, a leading source of data analytics and insights on the commercial construction industry. Branch has us time-travel to the peak of the office market in 1985 (when the tax code allowed for extended depreciation); shares the latest data from Dodge on office renovation projects; and explores the link between the office market and popular culture, from “Mad Men” to “Office Space” to the end of the corner office. He discusses the hotel industry’s “aggressive rebound” post-economic crises; makes the case for why the office sector is here to stay; and shares the opportunities he sees for adaptive reuse in big cities and build-to-suit office space made for the hybrid work environment. Recorded on June 14, 2023.

Listen to Podcast

 

Have We Forgotten What Leadership Looks Like?

Originally published on July 21, 2023, by Rob Nanfelt for REBIC.

Have We Forgotten What Leadership Looks Like? Let’s Show We Remember, This November.

It’s official. Candidate filing for the 2023 municipal elections in North Carolina has come to an end. I wish I had better news, but it looks like we will still have to choose from some of the same old tired leadership. Sure, there are bright spots but I’m wondering why we’re okay to keep electing people who are ill suited for the job. You’ll know what I mean as you read on.

We all know that many highly accomplished people, who could be good candidates, are busy doing other things. They are not drawn to public service, and we are not reaching out and recruiting them. There are the exceptions like Charlotte City Councilman Ed Driggs who retired years ago but has found a valuable niche serving the community. But he won’t be doing this forever so new leaders need to be identified, encouraged, supported, and promoted. And we need to start that process, now.

There are those that run because they see elected office as a stepping stone to other, bigger things. And some of them probably don’t care what happens to you after they leave. Although some of today’s solid elected officials started service at the local level and moved up, it was mainly because having already proved themselves leading school boards and cities, they simply wanted to test their mettle by doing other things. Beware of those seeking higher office just for the sake of going higher.

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CLT UDO Change Request Form Introduced: Use it and Become Part of the Solution

Originally published on July 20, 2023, by Rob Nanfelt for REBIC.

Charlotte's Unified Development Ordinance (UDO) has been in place for nearly two months.  As was anticipated, we are seeing challenges in the field due to some of the new requirements.  Similarly, language changes have resulted in a lack of clarity and constrained flexibility.  Each of you have an opportunity to play a direct role in assisting us in obtaining some of the necessary changes.  Take advantage of it!

In collaboration with, and at the request of City Staff, REBIC members have developed a UDO Change Request Form to assist Staff and Members of Council with reviewing suggested changes to the ordinance.  Specific examples and recommended language changes submitted along with justification for the requested amendments should result in a more efficient process for obtaining clarity where necessary, and to accelerate the process of administrative as well as legislative relief. 

Complete the Form

Forms should be sent to Laura Harmon with the City of Charlotte Planning Department at [email protected], with carbon copies to [email protected][email protected], and [email protected].

My take:  I don't know how more directly to say this - if we want to fix the problems, in a timely manner, we need to demonstrate the need and reason for those changes.  This tool also provides another layer of accountability and buttresses our needs case to adopt amendments, as rapidly as possible.  When we entered into his new era of the 2040 Plan and UDO, it was frequently mentioned by Members of the Council and Planning Staff that modifications would be necessary and would be considered on an ongoing basis.  This tool will assist in tracking our progress and obtaining a more positive outcome.  Please share this within your network so it may be utilized broadly.  

Designing for Wellness in Distribution Centers

Originally published in June 2023 by KSS Architects for NAIOP.

The rapid expansion of e-commerce over the past decade has reshaped industrial real estate and the nature of work within warehouses and distribution centers. Occupiers have invested in mechanization, automation and warehouse-management systems to maximize throughput. Despite that, distribution centers often require a large number of workers to process incoming shipments and outgoing orders. Growing competition for workers and increased awareness about workplace wellness have generated interest in designing interventions that can make these centers healthier and more attractive work environments. Wellness features in industrial properties can contribute to market differentiation, increase employee retention, impact productivity and help meet environmental, social, and governance (ESG) goals.

The NAIOP Research Foundation commissioned this report to offer design recommendations that improve occupant well-being. The authors conducted secondary research, observed conditions in existing distribution centers, and interviewed occupants to collect information on key wellness concerns. They then drew from these findings to design a prototype distribution center with elements and features that contribute to a healthier and safer work environment.

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Dustin C. Read Named Thomas J. Bisacquino Distinguished Fellow

Originally published on June 27, 2023, by NAIOP.

Dustin C. Read, Ph.D., J.D., has been named the NAIOP Research Foundation/Thomas J. Bisacquino Distinguished Fellow.

The position is endowed by the Thomas J. Bisacquino Honorary Fund, established by members of NAIOP to honor Bisacquino’s exemplary service to the association and the commercial real estate industry. Bisacquino retired in June 2022 after 33 years serving as NAIOP president and CEO.

“I’m exceptionally pleased to recognize Dustin with this fellowship,” said Jennifer LeFurgy, executive director of the NAIOP Research Foundation. “He is a longtime friend of NAIOP and has contributed his valuable expertise to the Foundation for several years. I’m confident we will all continue to benefit from his dedication, enthusiasm and leadership.”

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Advance Your Career with the National Forums Program

Forums members engage in candid conversations about project challenges, business opportunities, and more in a confidential and non-competitive setting.

Apply today!

 

A Data-driven Plan to Convert Empty Offices into Lively Residences

Originally published on July 6, 2023 by Marie Rugg for NAIOP.

The advent of the COVID-19 pandemic caused massive disruption to office work as usual. Companies that had been cautiously optimistic going into 2020 experienced dramatic upheaval just a few months in as stay-at-home orders transitioned to longer-lasting changes in where and how people work. Cities and municipalities worldwide continue to grapple with the question of how to handle office space sitting idle in formerly bustling central business districts.

In a recent NAIOP webinar, Gensler Principal Steven Paynter, OAA, ARB, explored the firm’s data-driven process for analyzing underused office spaces and determining how to transform them into vibrant and livable residential buildings.

At the end of 2019, Gensler had talked to their clients about their outlook on the year ahead and any concerns they had about the coming year. Many clients said their Class A office buildings had 1-2% vacancies; however, their Class B and Class C office buildings weren’t doing as well, even with upgrades and added amenities. In the chaos of the beginning of the COVID-19 pandemic, Gensler examined in depth how they could help to stabilize and rebuild their clients’ confidence in their portfolios and protect the value of their assets.

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GOP Tax Package is Just the Beginning

Originally published on June 21, 2023, by Aquiles Suarez for NAIOP.

Last week, House of Representatives Ways and Means Committee Chairman Jason Smith (R-MO) kicked off what is expected to be months-long congressional negotiations over tax legislation. After a markup session that lasted nearly 10 hours, the tax committee passed three pieces of legislation that will be packaged together to comprise the American Families and Jobs Act. The bills passed on a purely partisan basis, with no Democrats on the committee voting in support, and with little chance that the combined bill would pass the Democratic-controlled Senate in its current form. As such, the committee’s action is seen as House Republicans’ first step on the road to talks with their Democratic Senate counterparts, possibly culminating in a year-end, bipartisan tax package.

The three bills passed by the Ways and Means Committee are:

  • The Tax Cuts for Working Families Act (H.R. 3936);
  • The Small Business Jobs Act (H.R 3937); and
  • The Build It in America Act (H.R. 3938).
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Seismic Shift in Office: What’s Next

Originally published on June 14, 2023, by Kathryn Hamilton, CAE for NAIOP.

The sluggish return to the office, financing and liquidity, and new ways of approaching the office sector were the predominant themes of an elite gathering of c-suite office owners, investors and developers. The conversation, spearheaded by NAIOP and hosted last week in New York City, explored the challenges and opportunities facing the sector. 

Here are key takeaways from the event: 

Office can learn from other sectors. Look to the retail industry for rebounding inspiration. Despite being labeled “dead” just a few short years ago, retail has reinvented itself by transforming its business model – and it has worked. Office has the same potential for turn around by creating spaces that are an experience, not only a workplace. Flexible workspaces and formats are a must – hot desks, private office and conference rooms are needed, but not equally every day. Don’t underestimate the benefit of “network effects,” or after-hours networking events that are a real draw for tenants and reasons to excite employees about coming to the office. Class A product that offers amenity and community spaces continue to be quickly leased.  

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The State of the Markets for Industrial Real Estate

Originally published on June 8, 2023 by Natalie Fidlow, CFA for NAIOP.

“Volatility and uncertainty” describe the current state of the markets, according to Tom Griggs, managing director and head of industrial & logistics for the East at Hines, with the past 12-18 months presenting a difficult environment. Griggs led an expert panel discussion on the outlook for the industrial real estate capital markets at NAIOP’s I.CON East.

Is there light at the end of the tunnel?

Peter Nicoletti, head of capital markets in New York at Colliers International, recalled the third quarter of 2022 when the markets seized up. “In the following months, spreads on deals slowly started coming in until January of this year, when Silicon Valley Bank and Signature Bank failed. At that point, spreads blew back out.” Lenders are risk-off. Colliers International does have $1.8 billion in construction deals and has noticed that there has been a tightening in underwriting standards. Now, a deal’s loan-to-cost is around 55-65%. The days of 85% are gone. Nicoletti anticipates seeing more competitive pricing as those investors who moved to the sidelines return.

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You want to build WHAT in my neighborhood?

You want to build WHAT in my neighborhood? - Council Member James Mitchell, Jr. will host a town hall to discuss various planning and development topics including UDO implementation on June 1, Community Area Planning, understanding the blue "Z" rezoning sign, and community benefits. 

Thursday, June 29, 2023 | 06:00 PM - 08:00 PM
Charlotte-Mecklenburg Government Center
Chamber and Room 267
Charlotte-Mecklenburg Government Center
600 E. Fourth St.
Charlotte, NC, 28202

RSVP to Jocella Palmer

Seismic Shift in Office: What’s Next

Originally published on June 14, 2023, by Kathryn Hamilton, CAE for NAIOP.

The sluggish return to the office, financing and liquidity, and new ways of approaching the office sector were the predominant themes of an elite gathering of c-suite office owners, investors and developers. The conversation, spearheaded by NAIOP and hosted last week in New York City, explored the challenges and opportunities facing the sector. 

Here are key takeaways from the event: 

Office can learn from other sectors. Look to the retail industry for rebounding inspiration. Despite being labeled “dead” just a few short years ago, retail has reinvented itself by transforming its business model – and it has worked. Office has the same potential for turn around by creating spaces that are an experience, not only a workplace. Flexible workspaces and formats are a must – hot desks, private office and conference rooms are needed, but not equally every day. Don’t underestimate the benefit of “network effects,” or after-hours networking events that are a real draw for tenants and reasons to excite employees about coming to the office. Class A product that offers amenity and community spaces continue to be quickly leased.  

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How Split-level Industrial Could Work in Forgotten Industrial Sites

Originally published on June 9, 2023 by Kathryn Hamilton, CAE for NAIOP.

Every day, developers drive past prime industrial real estate sites that could be warehouse-perfect, were it not for the sloped grade that would cost too much to excavate to make the facility level. Enter a new solution: a split-level building that doubles the space by creating efficiencies in construction costs and land use.

This unique multistory prototype design solution by Ware Malcomb can help utilize forgotten sites that were previously deemed unsuitable for industrial development due to their complex topography.

Frank Di Roma, OAA, MRAIC, regional vice president, and Luke Corsbie, PE, PLS, LEED AP, regional director, civil engineering, both with Ware Malcomb, walked I.CON East attendees through this exciting new concept and discussed the benefits of using split-level industrial in unexpected locations.

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Leveraging Data Science and AI in CRE Investment Strategies

Originally published on June 9, 2023, by Natalie Fidlow, CFA for NAIOP.

“[Artificial Intelligence] won’t replace real estate people. AI will replace real estate people who don’t have AI,” said Itay Ron, senior president of Northeast markets at Faropoint at the I.CON East conference this week in Jersey City, New Jersey. “Right now, we are reaching an inflection point where you can easily use data for commercial real estate,” Ron continued, discussing the state of artificial intelligence technology and how commercial real estate professionals can utilize AI in their investments. 

AI in the Spotlight

Earlier this year, Microsoft-backed Open AI released ChatGPT to the public. This tool, which can create human-like text, showed the world the robust application of generative AI, but it’s not new. “AI has been used behind the scenes for many years.  That release set off the arms race of AI between Microsoft and Google,” said Ron. And over the last year, you can see the impact of utilizing AI. News outlets and written content creators are being materially disrupted. For example, BuzzFeed, CNet and Insider are all news outlets decreasing their workforces by at least 10% and using AI to create news stories.

Insurance is another industry that is ripe for disruption, according to Ron. The industry is beginning to utilize active insurance; sensors on wearables will send your data to underwrite your health insurance policy. Sensors on your car will do the same for your auto. “By 2025, more than one million devices will be connected to sending data within insurance.”

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Tackling the Tenant Workforce Issue

Originally published on June 8, 2023, by Brielle Scott for NAIOP.

“Please raise your hand if your tenants have encountered any difficulties obtaining or retaining the workforce they need,” Anne Strauss-Wieder, Director, Freight Planning​, North Jersey Transportation Planning Authority​, asked the audience at NAIOP’s I.CON East: The Industrial Conference.

Almost every hand went up.

In a panel discussion on this workforce issue, Strauss-Wieder joined Glenn Best, director manufacturing and supply chain sector strategy​, New Jersey Council of County Colleges​; Steven Hussain, head of government and community affairs​, Prologis​; and Owen O’Neil, executive director​, Lehigh and Northampton Transportation Authority​; to share their perspectives and present some potential tools and solutions.

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Corporate Real Estate of the Future: Where Sustainability and Profitability Converge

Originally published on June 8, 2023, by Kathryn Hamilton, CAE for NAIOP.

This week at NAIOP’s I.CON East: The Industrial Conference, four experts in the space shared their thoughts on how the corporate real estate of the future will integrate the evolving trends of sustainability and automation so that owners can meet carbon reduction and Environmental, Social and Governance (ESG) goals, exceed tenant specs, future-proof their properties and increase NOI.

Speakers included Alicia Case, LEED AP BD+C, WELL AP, SITES AP, Fitwel Ambassador, LFA, southeast region lead, sustainability, JLL; Nicolette Jaze, head of sustainability, Galvanize Climate Solutions; Shelah Wallace, director, originations, Nuveen; and moderator James Geshwiler, co-founder and chief strategy and investment officer, Catalyze.

Here are six takeaways from their conversation:

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Addressing Today’s Supply Chain Challenges

Originally published on June 8, 2023, by Brielle Scott for NAIOP.

A panel of experts dove into all things supply chain at I.CON East: The Industrial Conference, led by Beth Rooney, port director for the Port Authority of New York and New Jersey. She kicked off the discussion by asking what strategies the speakers are seeing their clients pursue to reduce operating costs, increase productivity and improve operational resilience.

Grayson Scott, senior consultant with CBRE, said one of the biggest things his firm is being asked is to help with large-scale assessments. “Clients want to know where their weak spots are, if they’re operating in the best locations. We’re taking a bigger, broader look at their entire supply chain.”

Brewster Smith, head of supply chain solutions at Colliers, said he’s seeing migration away from Tier 1 port-adjacent markets to Tier 2 and Tier 3 markets that are a bit more tenable from a cost perspective and from a vacancy perspective. “In Los Angeles, companies that have been in Riverside County or Inland Empire are now starting to look at Fresno, Bakersfield, Phoenix or Salt Lake City to figure out what the costs are of migrating to that market.”

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The Logistics Building of the Future

Originally published on June 8, 2023 by Brielle Scott for NAIOP.

At NAIOP’s I.CON East: The Industrial Conference today, attendees explored the logistics building of the future, as designed and imagined by Matt Brady, LEED AP, architect and executive vice president, and the team at Ware Malcomb.

“The challenge we’re trying to solve with the logistics building is primarily the speed to customers,” Brady said. Getting closer to the consumer requires in many cases that companies locate in more dense urban sites. And typically, the size of those sites is limited – “you can’t just go and take down 20 acres in an urban environment, and it’s extremely expensive.”

“We have challenged ourselves to think creatively if we’re going to meet the needs of occupiers as those needs evolve, and that’s what this whole exercise is about: designing the logistics building of the future.”

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