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Thank You to Our Batson-Cook Construction, Our Scoreboard Sponsor!

Thank you to Batson-Cook Construction for being our Scoreboard Sponsor at this year’s NAIOP Charlotte/CRCBR Golf Tournament on September 28!

Sign up as a sponsor to get your company name in front of brokers and developers, and catch up (from a safe distance) with your industry peers. For one price, your company will be recognized as a sponsor during this two-flight tournament! Sponsorships are available on a first-come, first-served basis. Learn more and sign up here: https://www.naiopclt.org/golf-tournament

 

New Report: Recession Produces Headwinds for Industrial Real Estate

Originally published by Dr. Hany Guirguis, Manhattan College and Dr. Timothy Savage, New York University on August 2020 for NAIOP Research Foundation

COVID-19 Spurs Demand for E-Commerce, but Recession Produces Headwinds for Industrial Real Estate

The U.S. macroeconomic landscape has deteriorated significantly since NAIOP’s February 2020 Industrial Space Demand Forecast. Most notably, the economy entered a recession that is likely to continue through the end of the year. Although industrial real estate has outperformed other commercial property types this year due to a surge in e-commerce, broader macroeconomic indicators suggest industrial space absorption will decline sharply in Q3 2020 and then rebound to positive levels in Q2 2021 (see Figure 1).

After spreading quickly within the New York tri-state area, the COVID-19 pandemic moved south and west to states such as Arizona, Florida and Texas. As of mid-August, U.S. states and municipalities continue to implement a patchwork of public safety orders and partial lockdowns on business activity. Solutions to this crisis depend on the development and distribution of a successful vaccine; three candidate vaccines will soon enter large-scale trials.

Prior to the pandemic, CRE was already being disrupted by several major economic trends, in particular the growth of e-commerce. In part, this was driven by the economic efficiency of e-commerce distribution over traditional brick-and-mortar retail.1 The pandemic will likely accelerate the transition of retail sales online, which will continue to drive long-term demand for industrial space. In urban and suburban communities, same-day and next-day delivery through e-commerce will support industrial absorption. The automation of physical tasks within warehouses and distribution centers has the potential to increase their efficiency, further contributing to e-commerce’s competitive advantage over traditional retail.2

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Negotiating with Tenants during a Major Economic Disruption

Originally published on Ron Derven in NAIOP's Summer 2020 Issue

Flexibility is a must, but document everything as specifically as possible.

All the legal precedent in the world won’t solve the problem of tenants who cannot pay their rent, such as restaurants or businesses forced to lay off all their employees because they have no revenue in the aftermath of coronavirus-related shutdowns.

“It is impossible for lawyers to predict how courts are going to rule on these issues in the future as defaults from COVID-19 situations begin to work through the judicial process,” said attorney George Pincus of Stearns Weaver Miller, P.A., in Fort Lauderdale, Florida, during a recent NAIOP webinar.

Pincus said many large national retail tenants are informing landlords that they are not going to pay rent for the foreseeable future and claiming impossibility of performance and force majeure (unforeseeable circumstances that prevent someone from fulfilling a contract). Pincus said if a landlord receives such a letter, they must assert their rights immediately.

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US Federal Reserve Officials Highlight Need for Additional Aid

Originally published on August 25, 2020 y NAIOP E-Newsletter

U.S. Federal Reserve officials last month agreed on the need for additional government action to support the economy, according to minutes from the July 28 meeting released last Wednesday. The comments come amid a Congressional stalemate over the size and scope of the next coronavirus relief bill.  

A key quote from the minutes reads as follows: “Participants observed that uncertainty surrounding the economic outlook remained very elevated, with the path of the economy highly dependent on the course of the virus and the public sector’s response to it … A number of participants observed that, with some provisions of the CARES Act set to expire shortly against the backdrop of a still-weak labor market, additional fiscal aid would likely be important for supporting vulnerable families, and thus the economy more broadly, in the period ahead.”

 

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Exclusive NAIOP Forums – Deadline is 8/31/2020

Collaboration | Guidance | Networking | Leadership

Earlier this week, members heard about taking your business to the next level with NAIOP. NAIOP’s Bennett Gray discussed with Tricia Noble, Ascentris; Brian Richards, Beacon Partners; and Patrick Pierce, Selwyn Properties, about why they participate in Forums and how it’s been a rewarding experience that’s allowed for professional and personal growth and development. Click here to view the full video recording.

The National Forums bring together industry professionals in select groups to share deep industry knowledge, develop successful business strategies and build long-term relationships.

National Forum groups meet twice annually and connect year-round online, but the Forums experience is more than just the face-to-face meetings. Regular virtual meetings between annual events and the development of individual relationships among members are highly valued benefits of the program.

The application period for the National Forums closes Monday (8/31)!

Click Here to Apply

 

Questions

If you have any questions about the Forums, please email Bennett Gray at  [email protected].

September 2 Webinar: A Capital Market Update in a COVID World

Join NAIOP on September 2nd at 2:00PM/EDT as we explore debt and equity capital flow today, and how it has evolved in the face of the current pandemic. Gary E. Mozer, Principal/Managing Director, George Smith Partners, will provide a macro overview of the market; discuss how lenders and investors are pricing and structuring and perceiving risk differently; changes in underwriting; and how diverse sources of capital are each lending/investing in the current climate.

Speaker: Gary E. Mozer, Principal/Managing Director, George Smith Partners

 

Click Here to Register

National Forums: Don’t Wait to Apply for this Unique Opportunity

The Forums provide a unique opportunity for members to openly discuss project challenges, business opportunities and lessons-learned in a confidential and non-competitive setting. Over time, fellow members become a trusted circle of advisors.

The National Forums are an excellent way to become involved, stay in touch and develop new connections with key industry leaders.

Apply Online

The application period for the National Forums is now open. To submit an application, create an account and apply using our online tool. Deadline: Aug. 31. Notification of appointment will be emailed and followed by letter.

Questions? Contact Bennett Gray or Susan Bornt at 703-904-7100.

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Golf Tournament Sponsorships are Going Fast! Sign Up Now

NAIOP Golf
 

Tournament Sponsorships Will Sell Out

Sign Up Today!


The always sold out industry golf tournament hosted by NAIOP Charlotte & CRCBR is happening this year! On September 28, get your company name in front of brokers and developers, and catch up (from a safe distance) with your industry peers. For one price, your company will be recognized as a sponsor during this two-flight tournament! Sponsorships are available on a first-come, first-served basis.
 
Please Note: Due to the ongoing health crisis we've had to adjust our program and there will be no player registrations included in this year's sponsorships. In addition, we reserve the right to make necessary changes to the tournament based on state, local and/or club COVID-19 restrictions & guidelines.
 
To become a sponsor click the button below and complete the form or call or email Lauren Simonetti at 704-377-8982 x103 or [email protected].

View Open Opportunities And Pricing Below!

 
Become A Sponsor
 

Note: NAIOP Charlotte Cornerstone Sponsors (Capstone & Archstone Levels) and CRCBR Alliance Sponsors (Chairman & Corporate Associate Levels) are confirmed as hole sponsors.

Questions about sponsorship?
Contact the NAIOP Charlotte office at 704-940-7383 or by e-mail at [email protected].

 


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Webinar Aug. 27: What the New NAIOP Industrial Space Demand Forecast Tells Us

Join us on Thursday, August 27th during the Industrial Space Demand: What the Latest NAIOP Forecast Tells Us Webinar at 2:00PMEDT.  Although industrial real estate has outperformed other commercial property types this year, thanks in part to rising e-commerce sales, unprecedented economic indicators suggest U.S. industrial space net absorption may decline to negative levels during the next three quarters. What factors contribute to this projected decline, when will it rebound, and what does it mean for the industrial real estate sector?

To identify linkages between overall economic activity and the demand for industrial real estate, forecast authors Dr. Hany Guirguis, professor, economics & finance, Manhattan College and Dr. Tim Savage, clinical assistant professor, NYU SPS Schack Institute of Real Estate, will walk us through the numbers, provide an overview of their forecasting process and engage in a live Q&A session with attendees.

Speakers

  • Dr. Hany Guirguis - Professor of Economics and Finance
  • Dr. Timothy Savage - Clinical Assistant Professor of Real Estate

 

Click Here to Register

Property Owners Must Prepare for Potential COVID-19 Liability Issues

Originally published by Ron Derven in NAIOP's Summer 2020 Issue.

During a pandemic, business-interruption insurance may not be a panacea.

As the COVID-19 crisis continues to affect the U.S., commercial property owners need to prepare for potential liability issues arising at their buildings, according to attorney George Pincus of Stearns Weaver Miller, P.A., in Fort Lauderdale, Florida, during a recent NAIOP webinar.

He offered these tips to protect properties, tenants and landlords from liability:

Communicate with tenants. A primary way to mitigate potential liability is by always being a “reasonable and prudent” commercial property owner and operator. That is one who conducts business with “skill, diligence, care, prudence and foresight,” according to Law Insider’s legal definitions dictionary. Establish and frequently use communications channels with tenants (including those working remotely) such as e-mail, websites or written notices.  Ask them to agree that these are the ways you will communicate through the crisis. Update tenants frequently on the status of the building. Provide as much information as possible. This includes hours and services, and building access procedures. If the building’s janitorial services are not equipped to perform decontamination or extraordinary disinfecting, explain why. Provide reminders that tenants should review and institute procedures for cleaning requirements.

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Get Seasoned Advice at next week’s LWAL | More Upcoming Events

Join us on Monday, Aug 24th at 11:30 am as we take a look at an opportunity to create your own personal advisory board. The National Forums brings together industry professionals in select groups to share deep industry knowledge, develop successful business strategies, and build long-term relationships. Learn from NAIOP members about their experiences and how they use their Forum to create impactful relationships for your business.

Our Panelists

Learn more about the General, Limited, and Developing Leaders Forums and tap into a wealth of resources. The application deadline is August 31, 2020.

Registration

This event is offered to NAIOP Charlotte members only at no charge. Prior registration is required. ZOOM login information will be sent two (2) hours prior to the event.
 
Click Here to Register

Questions

If you have questions about the Virtual Panel, please contact the NAIOP Charlotte office at [email protected].
 
More events to be announced soon.

Adaptability the Top Amenity for the Post-pandemic Office

Originally published by Alan Joel for NAIOP on August 6, 2020.

The must-haves for the office of the near future may not be the same as they were six months ago. Since the COVID-19 pandemic has reshaped the way people live and work, every community has had to take stock of how their future office space and common area amenities can be safely occupied. As businesses across the country are in various stages of reopening, office real estate experts on opposite coasts shared how their clients are reimagining their office space.

Adapting for the Short Term

Stefan Rogers, senior vice president, Voit Real Estate Services/CORFAC International, said Orange County, California, business owners who have transitioned to a remote workforce are extending that policy instead of retrofitting their existing space to enable a return. This way they avoid incurring a potential short-term capital expense in a space they’re not sure they may need in its current format moving forward.

Click Here to Read More

COVID-19 Could Lead to Cleaner, Healthier Buildings

Originally published by Trey Barrineau for NAIOP's Summer Issue.

Expanded sanitation processes and improved HVAC systems could become standard in the years ahead.

The coronavirus pandemic is forcing building owners and tenants to consider something they may not have given much thought to in the past — how clean their facilities really are.

The good news is that most property managers were well prepared for the outbreak. A survey conducted in March by Appfolio found that 90% had already set up strategies for dealing with coronavirus, including revised sanitation policies.

“Within our company and all the properties, we established a communications system to track on a daily  basis cleaning supplies and sanitation supplies at every property,” said Barry Blanton, senior vice president with Blanton Turner, during a recent NAIOP webinar. (Blanton Turner is based in Seattle, an early COVID-19 hot spot.)

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New Research Brief: Negotiating with Tenants and Leasing Space During COVID-19

Originally published by Shawn Moura, Ph.D., for NAIOP's Research Foundation in August 2020.

The coronavirus pandemic has had a broad impact on local economies across the U.S. and Canada. Mandatory closures and reduced consumer expenditures have impaired business operations across many industries, making it difficult for some commercial tenants to pay their rent on time and in full. Although less severely affected by the outbreak than hospitality or retail tenants, some office and industrial tenants have asked building owners for assistance in the form of rent abatements or deferrals. A small minority of these tenants have simply refused to pay rent.

Building owners have quickly developed strategies to respond to struggling tenants without jeopardizing their own financial health. At the same time, they have also adapted their leasing strategies to changed market conditions while updating the way they show spaces to facilitate social distancing.

Most North American localities have relaxed the regulations that required widespread business closures in March and April, but concerns are growing that an increase in infection rates may require another round of closures in some parts of the U.S. High rates of unemployment and reduced consumer expenditures may also lead more tenants to seek relief, even when their businesses remain open. Concerns about potential infection from face-to-face contact are also unlikely to disappear in the near future. For these reasons, practices that owners developed in the first months of the pandemic are likely to remain useful until the coronavirus and its economic effects have abated.

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Register Today! Get Seasoned Advice, Discuss Best Practices, and Forge Strong Relationships is on August 24

Take a quick look at an opportunity to create your own personal advisory board. The National Forums brings together industry professionals in select groups to share deep industry knowledge, develop successful business strategies, and build long-term relationships. Learn from NAIOP members about their experiences and how they use their Forum to create impactful relationships for your business

Our Panelists

Learn more about the General, Limited, and Developing Leaders Forums and tap into a wealth of resources. The application deadline is August 31, 2020.

Registration
This event is offered to NAIOP Charlotte members only at no charge. Prior registration is required. ZOOM login information will be sent two (2) hours prior to the event.
 
Click Here to Register
Questions
If you have questions about the Virtual Panel, please contact the NAIOP Charlotte office at [email protected].

2020 NAIOP Charlotte/CRCBR Golf Tournament Sponsorships Available

NAIOP Golf
 

Tournament Sponsorships Now Available!


The always sold-out industry golf tournament hosted by NAIOP Charlotte & CRCBR is happening this year! On September 28, get your company name in front of brokers and developers, and catch up (from a safe distance) with your industry peers. For one price, your company will be recognized as a sponsor during this two-flight tournament! Sponsorships are available on a first-come, first-served basis.
 
Please Note: Due to the ongoing health crisis we've had to adjust our program and no player registrations will be included in this year's sponsorships. In addition, we reserve the right to make necessary changes to the tournament based on state, local and/or club COVID-19 restrictions & guidelines.
 
To become a sponsor click the button below and complete the form or call or email Lauren Simonetti at 704-377-8982 x103 or [email protected].
 
Become A Sponsor
 

Note: NAIOP Charlotte Cornerstone Sponsors (Capstone & Archstone Levels) and CRCBR Alliance Sponsors (Chairman & Corporate Associate Levels) are confirmed as hole sponsors.

Questions about sponsorship?
Contact the NAIOP Charlotte office at 704-940-7383 or by e-mail at [email protected].

 


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NAIOP’s July Coronavirus Impacts Survey Results: CRE Continues to Recover

Originally published by Shawn Moura Ph.D. on August 3, 2020.

Last week, NAIOP conducted its fourth monthly survey of its U.S. members on the impacts of COVID-19. Since April, the association has examined the pandemic’s effects on conditions in commercial real estate and evaluates how firms have responded. The July survey results reveal that commercial real estate fundamentals are improving, but that the pandemic continues to impact development projects and appears likely to remain a significant challenge for longer than many had initially expected.

The survey was completed by 347 NAIOP members between July 15-20, 2020. Respondents represent a range of professions, including developers, building owners, building managers, brokers, lenders, and investors.

Click Here to Read More

Washington Responds to COVID-19

Originally published by Aquiles F. Suarez, Toby Burke , and Alex Ford for NAIOP's Summer 2020 Issue

Congress and the Federal Reserve took unprecedented action to shore up businesses, including commercial real estate.

As the COVID-19 pandemic began to shut down the economy, lawmakers in Washington responded, reaching agreements on several bills intended to help the country survive the economic chaos caused by the pandemic. Congress passed three relief bills in March, and the House passed a fourth bill in May that was headed for further negotiations with the Senate.

“Phase I” was H.R. 6074, the Coronavirus Preparedness and Response Supplemental Appropriations Act, signed March 6. It provided approximately $8 billion in additional funding to federal health agencies and eased regulations to allow for over-the-phone consultations between Medicare recipients and their health providers. The bill also empowered the Small Business Administration (SBA) to issue an Economic Injury Disaster Loan declaration, which makes loans of up to $2 million available to small businesses.

Click Here to Read More

Five Issues Landlords Should Consider Regarding a Pandemic's Impact on Commercial Tenants

Originally published in NAIOP's Summer 2020 Issue By Michael Stewart

Many tenants need rent relief, but what are the best ways to go about providing it?

As state and local governments rolled out measures to prevent the spread of the novel coronavirus in March, commercial landlords began getting calls for help from tenants. In an environment where social distancing has taken hold and more customers are staying home, retailers and other consumer-facing businesses are feeling the impact of decreased demand, supply-chain interruptions, and in some cases, mandatory closures.

In light of this rapidly evolving situation, here are five issues landlords should consider before negotiating concessions with commercial tenants.

Loan documents could limit tenant relief. Before agreeing to any reduction in rent or other modifications to a lease, owners should carefully review their project’s loan documents. Many documents include financial covenants that must be maintained during the term of the loan. Owners should ensure that aggregate rent reductions will not reduce net operating income to a point where financial covenant tests are tripped, triggering a default or other lender protections (such as cash management) under the loan documents. Additionally, owners need to confirm whether their loan documents permit the modification or termination of a lease, or acceptance of less rent than stipulated.

Click Here to Read More

New Brief: Using Capital Improvements to Create Competitive Advantage in the COVID-19 Era

Originally published by Dustin C. Read, Ph.D./J.D., Associate Professor, Virginia Tech and Sam Kuprianov, undergraduate Real Estate major, Virginia Tech in July  2020

The NAIOP Research Foundation published a timely new research brief titled "Using Capital Improvements to Create Competitive Advantage in the COVID-19 Era," written by Dustin C. Read, Ph.D./J.D., Associate Professor, Virginia Tech and Sam Kuprianov, undergraduate Real Estate major, Virginia Tech.

In addition to disinfecting common areas and promoting social distancing, some owners of office and industrial spaces are investing in capital improvements designed to limit the spread of COVID-19. This research brief evaluates the merits of these capital investments and their potential to create durable competitive advantages.

This is the second in a series of briefs the Foundation plans to publish in response to the COVID-19 pandemic's impact on commercial real estate, following "Navigating a Safe Return to Work: Best Practices for U.S. Office Building Owners and Tenants." 

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