Browse Tag: news

Commercial Real Estate News Roundup For July 30, 2014

Nighttime view of Downtown Los Angeles and the...

Commercial real estate comes to reality TV, a rush to get across town in Los Angeles, and brick-and-mortar’s resilience – it’s all here in the Commercial Real Estate News Roundup For July 30, 2014.

General

California is building once again, according to commercial real estate survey –  Imperial Valley News, July 27, 2014 – The Golden State’s newest building surge reminds us that the world’s fifth largest economy has much to teach the world about sustained economic growth.  And much to teach the doomsayers of the past 15 years about how to eat crow.

New Lenders Enter Property Market and Think Small, WSJ, July 22, 2014 – Bigger isn’t always better, and the small businesses of the nation once again have the attention of lenders.

Vermont commercial real estate market continues to show strength at mid-year, New England Real Estate Journal, July 24, 2014 – Led by suburban Burlington office offerings, Vermont’s commercial property picture looks as sweet as a pint of Ben & Jerry’s.

Lights, Camera, Sell: Harrison Man Films Real Estate Reality Show Pilot, Harrison Daily Voice, July 25, 2014 – It finally happened: commercial real estate is getting the reality TV treatment.  Sadly, nobody in Hollywood has yet picked up my script for a show based on dairy farm land sales. I call it Moo Diligence.

 

 

Office

Office real estate market finally catches up, Minneapolis Star Tribune, July 24, 2014 – Downtown Minneapolis hasn’t seen this much action since Prince filmed Purple Rain.

L.A. County office market improves as new leases edge out renewals, LA Times, July 24, 2014 – Renewals are falling behind new leases in L.A. as companies flush with cash seek new window views.

Washington’s biggest real estate battle is beginning to look like a blowout, Washington Post, July 22, 2014 – They’ve got a real “case of the Mondays” in DC.  Monday Properties, that is.

Designing a Better Office Space, Entrepreneur, July 26, 2014 – It’s happening in even the stodgiest firms: color, open space and shiny stuff is taking over the white collar landscape.

 

 

Industrial

La. leads nation in industrial construction value, The Advocate, July 26, 2014 –  $4.9 billion in industrial projects have put Louisiana on top of the construction spending pile.

Illinois: Driven by logistics, DC Velocity, July 28, 2014 – The transportation and fulfillment explosion spurred by e-commerce is yet another reason the traditional crossroads of the USA – Illinois –  has a rosy future in industrial development.

Liberty Property Trust makes plans for new warehouse park in Durham, Triangle Business Journal, July 25, 2014 – Concrete tilt walls and industrial grade construction are the path to profits in Durham.

 

 

Retail

Silver Line a draw for some new retailers, Washington Post, July 28, 2014 – Passengers and shoppers continue their overlap in DC.

Outlet mall’s opening a sign of shifting retail landscape in Charlotte region, Charlotte Observer, July 27, 2014 – The outlet mall, once the exclusive feature of off-location areas is remaking what it means to go shopping in Charlotte.

One Reason Retail Agents Should Celebrate, GlobeSt., July 28, 2014 – Study: most consumers prefer brick and mortar.

Commercial Real Estate News Roundup For May 16, 2014

English: Park Towers

 

A DC building goes public, $3 billion in deals in Chicago’s first quarter of 2014, a car wash moves for many millions, and malls grasp for ballast. It’s all in this week’s Commercial Real Estate news roundup.

General

Office

Industrial

Retail

Multifamily

Land

 

 

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NADCO President Talks REAL (504) Loan Success

A picture of NADCO President Beth Solomon
NADCO President Beth Solomon

The Real Estate Advantage (REAL 504) loan program is a key platform in the federal government’s business development role. Administered through the Small Business Administration (SBA), the REAL (504) loan is for small business to acquire real estate and equipment.  While it’s not the only loan program the SBA offers — the full range of loan and grant programs can be seen here — the REAL (504) loan is a welcome topic at the real estate deal table when it’s time for a business to expand operations and acquire a larger footprint.

Representing SBA lenders and districts across the US is NADCO, the National Association of Development Companies. Spreading awareness of the loan programs among small business owners is a continual challenge. To get a wonderful illustration of how REAL (504) loans can work, check out a recent appearance by NADCO President Beth Solomon at a roundtable discussion and reception in Pueblo, Colorado.

Joe and Donna Ruzich didn’t celebrate alone at a reception Monday marking the opening of their Synergy Physical Therapy and Wellness center, a dream of Joe’s since he graduated college 15 years ago. 

The guest list included several top advocates for Small Business Administration lending programs, including Beth Solomon, president of the National Association of Development Companies, which represents SBA districts and lenders across the nation.

As part of the event, Solomon, visiting Colorado from Washington, D.C., led a roundtable discussion at Synergy, 1080 Eagleridge Blvd., Unit G. The Ruziches qualified for a smaller down payment on a purchase-and-remodeling loan as part of the Real Estate Advantage (504) Loan program.

Calling the new center a “REAL (504) success story,” Solomon urged small businesses across Southern Colorado to look into the program and other government-sponsored initiatives such as Small Business Development Centers. 

“We’re here to get these loans into the community,” she said.

Read the entire Dennis Darrow article that originally ran in the Pueblo Chieftan here.

(Photo Credit: The Georgetown Dish)

Commercial Real Estate News Roundup for May 7, 2014

Entrepreneurs invent a self-storage solution that comes to you, five-year market peaks , international tenant representation comes to the nation’s capital,

General

Office

 

Industrial

Retail

 

Multifamily

 

Legal Cannabis And Commercial Real Estate: A Budding Industry

The US is in the middle of a major evolution in policy concerning cannabis. In an era of legal supply and demand for pot, where are the commercial property opportunities?

In twenty-one of the fifty states, marijuana legalization laws have passed. While federal law bans all sale and possession of cannabis, enforcement in states varies quite a bit. Washington and Colorado have repealed state laws prohibiting the recreational use of cannabis, choosing a regulatory regime that is contrary to federal statutes. The gap between the federal “war on drugs” and state’s rights has never been greater and only shows signs of widening.

A map showing the marijuana legalization picture at the state level
Source: Governing.com

A Dealmaker Steps Into The Breach

Addressing gaps in markets is what entrepreneurs do, and the legal cannabis business promises to attract many business visionaries, lured by what is surely a multi-billion dollar market.  Serving that market means finding the space and doing the necessary property deals.

Catching a lot of attention for doing just that is one commercial real estate pro named Llorn Kylo, CEO of CannabisRx, a Scottsdale, AZ based real estate company who is snapping up millions worth of industrial properties in Illinois, California and Florida. Angela Gonzalez of the Phoenix Business Journal reports:

Cannabis-Rx Inc., a Scottsdale-based real estate company that is buying real estate for the medical marijuana industry, has paid $3.26 million for properties in California, Illinois and Florida.

The new publicly traded company just secured $30 million in financing to find real estate and financing for pot businesses.

Llorn Kylo, CEO of Cannabis-Rx (OTCQB:CANA), said he has been looking for properties in Arizona, but hasn’t found anything compelling yet.

“I certainly am looking and hope to get back to you with something in Arizona, but nothing just as of yet,” he said.

The real estate firm paid $1.26 million for a 209,000-square-foot building in Florida that will need another $1.8 million in upgrades.

Yes, he realizes he’s spending more on upgrades than on the building, he said.

He has contemplated buying vacant land and building from scratch, but the zoning permit process takes longer. For now, he’s looking at buildings he can rehabilitate.

Cannabis-Rx also just paid $2 million for four properties in San Francisco and Chicago.

The company already owns 37 properties in Florida, Illinois, California and Washington. Nine are ready for sale, four are under contract to be sold and 24 are being renovated.

Kylo said he’s interested in additional properties in California, Michigan, Washington and Colorado.

“I’m looking for distressed-type assets that need some sort of rehabilitation to improve the building,” he said. “We crystallize gains to improve our returns by finding diamonds in the rough.”

He said the company has achieved an average internal rate of return of about 32 percent per property.

Where Mr. Kylo leads, I’m sure many will follow. For all appearances, licensed marijuana distribution represents a property market sector with only growing demand for space devoted to its supply chain.  While the federal vs. state enforcement picture remains murky, in the states that have determined their own marijuana rules, the farm, industrial, warehouse and retail sectors all stand to benefit greatly from the arrival of a legal cannabis industry.

Don’t Miss The IREM Sponsored Panel At Upcoming ICSC RECon

 

National Association of REALTORS® affiliates CCIM Institute and the Institute of Real Estate Management will be well represented at the International Council of Shopping Centers’ RECon 2014, May 18-20 in Las Vegas. IREM is sponsoring a panel session, Tackling Today’s Marketing and Leasing Challenges From the Management Perspective, which features retail experts Mez R. Birdie, CPM, CCIM and Yvonne A. Jones CPM, CCIM. With moderator Randy Woodbury, CPM, the panel will discuss trends including omni-channel retailing, marketing plan development, tenant retention, pop-up retail, and more.

Logo for ICSC Recon 2014 IREM Logo

Meet The Panelists

Jones - 300 dpi
Yvonne A. Jones CPM, CCIM
Mez Birdie  jpg
Mez R. Birdie, CPM
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Randy Woodbury, CPM (Moderator)

 

Drop by NAR Commercial!

Attending ICSC RECon 2014? Visit NAR Commercial at booth #C189H and CCIM Institute at booth #C1920, both in Central Hall 5.

Commercial Real Estate Roundup – April 22, 2014

English: Wells Fargo Center, Denver Colorado a...

A Nevada rancher skips on rent while offering a novel excuse, the National Science Foundation lays a new foundation, cheap natural gas lights up Red Stick, two tales of Denver — it’s all here at the Commercial Real Estate News Roundup for April 22, 2014.

General

Office

Industrial

Retail

Land

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The Quantified Community: Taking Account Of It All

Hudson Yards Redevelopment Project

Once you start counting things, it can be hard to stop. Commercial property in operation presents a huge number of things to count, and it’s only with modern technology tools that we can handle that data on an ongoing basis.

Every type of commercial property from industrial to retail to office offers a universe of data to be collected. In order to find hidden value, areas for improvement, or to create comparative statistics to increase efficiency in property operation, we can count a property’s various dollar flows, square feet, degrees fahrenheit, kilowatt hours, air pressure psi — the list goes on and on. Unlike decades past, thanks to the sharp rise in automated building operations systems, these variables are increasingly being sucked into computers, where all huge piles of data belong.

If you’re counting new terms coined by our technology-infused times, it’s time to add one more. The marriage of new commercial property development and data collections aimed at ongoing improvement of property and community operation has taken on the name quantified community. It’s a holistic way of capturing the vital signs of a commercial property plus the community it’s embedded in.

If that sounds vaguely medical, it’s because the concept is an extension of the quantified self movement, where technology-enabled people are collecting information about their own bodies and diets in order to tweak themselves to maximum health. The simple bathroom scale isn’t enough any more — and in real estate, neither is the simple electricity bill.  The new thinking says we need to know the reasons behind the numbers, and to know our properties as we know ourselves — as systems.

New Thinking, New Developments

New York City’s Hudson Yards project is flying the quantified community banner very conspicuously.  It’s an eye-popping 16-skyscraper, 12 million sq. ft development on Manhattan’s west side.  The details of the project are impressive and include a fully quantified data collections operation encompassing retail (750,000 sq. ft.) office, residential and public space.

The collaboration is being touted as producing the first “quantified community” in the U.S.—which has a rather creepy, 1950s social experiment ring to it, though Constantine Kontokosta, deputy director NYU’s Center for Urban Science and Progress, assured us that all participation will be opt-in. Mr. Kontokosta said that NYU had approached Related about participating in the collaboration, after surmising what a good data set the new development would provide.

“This is just an incredible research opportunity for us,” said Mr. Kontokosta. “We hope to make the data available to other researchers and programmers, to find ways to make it more sustainable, and to apply the findings across the city.”

Mr. Kontokosta added that this marks the center’s first collaboration with a real estate developer. Ideally, he hopes to convince the other Hudson Yards developers to participate as well.

Although what, precisely, the center will measure is still somewhat vague at the moment. Possibilities include pedestrian flows, air quality within buildings and across open space and the health, the activity of residents and workers using a custom-designed, opt-in mobile application as well as solid food and recyclable waste and energy usage.

Mr. Kontokosta said that he believes residents will be interested in participating, not only because the project will be “unprecedented in scale” but because there’s a lot of interest in the “quantified self” at the moment.The Center also hopes the collaboration will help advance its leadership in the emerging field of “Urban Informatics—the observation, analysis, and modeling of cities.”

“The ability to conceive of and develop an entirely new neighborhood creates tremendous opportunities,” Related Hudson Yards president Jay Cross wrote in a statement. “Through our partnership with CUSP we will harness big data to continually innovate, optimize and enhance the employee, resident and visitor experience.”

And presumably, assuming the data is public—which we would hope it will be (Mr. Kontokosta said that Center hopes to make things “as transparent as possible”)—it will also allow journalists like us to analyze how well the city’s investment in the new neighborhood has paid off in terms of creating a viable community. And how it should fund, aid and encourage future developments like Hudson Yards.

The Wisdom Of Opt-In

The success of such a data collection project (and the property operations improvements that could follow) all hinge on collecting sufficient amounts of data.  Some of this collections capacity will be “baked in” to the development in the form of smart thermostats, water distribution and the like. But what’s most interesting, and potentially alarming, is the mobile application mentioned above.

Landlords or developers considering quantified community features should be wondering how to balance the successful collecting of data with the very real privacy concerns of American residents, customers, and public passers-by. It’s tempting to imagine that we have turned a corner technologically and that privacy is no longer a right. But that’s not only simplistic, it’s a great way to accentuate, not extinguish the “creepy” aspects of such applications.  It may be a short hop technologically from keeping tabs on lighting efficiency in a commercial property to compiling a database of comings and goings of tenants and visitors, but it’s a giant leap in terms of civil liberties, and one that should be heeded.

Reverse Migration Still A Force Shifting The Urban-Suburban Balance

The Suburbs of Silicon Valley

 

Population trends in many major metro areas include a reversal of the traditional flow of adults from urban centers into suburban enclaves.  Increasingly, these suburbs are greying demographically while thirtysomething workers and apartment dwellers prefer to stay close to the urban action.

Asking different demographers why this is happening will get you different answers. Some point to lows in tolerance for commuting, suggesting that the rise of electronic virtual  workspaces have the effect of naturally avoiding the scourge of commuter traffic. Others suggest the lifestyle preferences of millennials aren’t well-served by postwar conceptions of suburban life. Still others claim the allure of the city is growing in attraction as national crime rates fall.

Whatever the true reason(s) for any changes in your market, the shift in demand for work and apartment space is something you have to stay on top of. Servicing clients with the right solution means understanding and anticipating what is on their minds. When it comes to suburban-urban choices, recent selected market news on reverse suburban migration might help get a picture:

Primary Markets:

Secondary Markets:

 

(Photo credit: Mark Nye, ClubofHumanBeings.com)

 

REALTORS® Land Institute Honors 2013 Award Winners

 

farm land

 

Accredited Land Consultants (ALCs) are more than just land professionals, they are the most accomplished, experienced, and highest performing land experts across the country. They specialize in agricultural land, timberland, ranch, and recreational properties, or vacant land for developments. More information.

 

The REALTORS® Land Institute named the award winners for the 2013 Outstanding Chapter of the Year,  the 2013 Excellence in Instruction awards, and the 2013 ALC-to-ALC Networking awards, at the 2014 National Land Conference in Charleston, SC, on March 12-14. The awards are an honor among the REALTORS® Land Institute and prestigious Accredited Land Consultant (ALC) professional community.

 

And The Award For Outstanding Chapter Of The Year Goes To…

 

The Institute recognized the Iowa Chapter #2 of the REALTORS® Land Institute as the recipient of the 2013 Outstanding Chapter of the Year award. This honor recognizes a chapter that has demonstrated excellence and creativity in member retention, education, volunteering, technology, outreach, and collaboration. The Iowa Chapter is known for “doing it all” and “doing it well.”  The award was accepted by Kyle Hansen, ALC, 2013 Chapter President; Terry Pauling, 2014 Chapter President, and Molly Suarez, Chapter Administrator.

 

The Excellence In Instruction Award Goes To…

 

The 2013 Excellence in Instruction awards honored Randy Hertz, ALC Advanced, and Jim Miller, Esq. Both LANDU instructors bring quality, timely, and accurate information to their students. By updating courses and providing up-to-date technology and discussion on current industry laws, they capture the true spirit of businessmen who share and believe in the importance of knowledge and professional development.

 

The ALC-To-ALC Networking Awards Go To….

 

The ALC-to-ALC Networking awards recognized Accredited Land Consultants (ALCs) with the most lucrative peer collaboration during 2013. The deals are a clear indication of increased productivity and business expansion from networking among ALCs. Murray Wise, ALC, and Ben Crosby, ALC, won both the 2013 Largest In-State ALC-to-ALC Transaction by Sales Volume, and the 2013 Largest In-State ALC-to-ALC Transaction by Total Acreage.  The Largest National Referral for an ALC-to-ALC Transaction by Sales Volume was awarded to Randy Hertz, ALC Advanced; Terry Rupp, ALC, and Troy Louwagie, ALC. The final award, the ALC-to-ALC Networking Award for Overall Collaboration, was presented to Ben Crosby, ALC; Squire Smith, ALC; Clay Taylor, ALC; and David Hitchcock, ALC Advanced.

We offer congratulations to the winners and look forward to coming years of top-notch work from the RLI members.

(Photo credit: wangkai)

 

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