Five Trends Shaping the Industrial Sector

Global influences, changes in how consumers shop and their demand for fast delivery, and shifts in ownership of Class A industrial and distribution center real estate are affecting the industrial sector and are forecast to do so throughout 2016, including:

  1. Changes in ownership. With a shift toward institutionalization, more Class A industrial and distribution real estate will have increasingly fewer owners.
  2. Increased foreign investment. Offshore-driven capital is investing deeply, with more than $20 billion in total investment – that’s more than 37 percent of 2015 buyer activity.
  3. E-commerce and the “last mile.” Same-day delivery promises are driving demand for smaller industrial facilities in urban centers.
  4. Location strategies. As supply chains evolve, and e-commerce and retail strategies merge, functionality and location needs for the “big box” shifts too.
  5. Gauging supply chain risk. Global events from natural disasters to financial crisis can have an impact.

Read more in an article written by Aaron Ahlburn, senior vice president and Americas director of research, industrial, JLL, for the Winter 2015/2016 issue of Development magazine.

From January 26, 2016 NAIOP Source – Click here to view article.


2016 Legislative Preview: State and Local

In 2015, NAIOP’s Government Affairs team and NAIOP chapters worked to pass meaningful legislation that positively impacts commercial real estate. Get a glimpse of the state and local legislative outlook for the year ahead on the Market Share blog.

Recent Market Share posts also explore Amazon’s expanding brick-and-mortar presence, self-driving cars’ forays into inclement weather, top trends for office and industrial investors, and the new NAIOP member app.

From January 26, 2016 NAIOP Source – Click here to view article.

Senate Energy Bill Likely to See Action

Senate Leadership has indicated that they will likely bring to the floor a comprehensive energy bill this week. Chairwoman of the Energy and Natural Resources Committee Lisa Murkowski (R-Alaska) has been trying to secure floor time for a bill that passed out of committee since last July. That bill, the Energy Policy Modernization Act, passed with a bipartisan vote of 18-4 and included NAIOP-supported language on energy efficiency.

The energy efficiency title of the bill was authored by Senators Rob Portman (R-Ohio) and Jeanne Shaheen (D-NH) and contained language identical to their stand-alone bill, S. 720, the Energy Saving and Industrial Competitiveness Act. NAIOP has worked with both senators for a number of years to ensure the building code process, as it relates to energy efficiency, is cost-effective and technically feasible. The embedded language includes certain safeguards that require the Department of Energy to do a cost-benefit analysis on energy efficiency targets before codes are adopted and to ensure that the initial costs will have a realistic payback.

NAIOP will continue to lobby the Senate on the importance of the energy bill as it is debated on the floor. If the bill receives a favorable vote and passes in the Senate, it will be conferenced with a House energy bill that was agreed upon in December of last year.

From January 26, 2016 NAIOP Source – Click here to view article.

CRE Forecast for 2016: Choppy but Ultimately Stable

This year could mark a cyclical high in commercial real estate liquidity, pricing and transaction velocity according to the “Avison Young 2016 Forecast, Commercial Real Estate, Canada, U.S. and UK.” The annual report covers the office, retail, industrial and investment markets in 55 metropolitan regions.

“The global real estate industry has had a tremendous run,” comments Avison Young CEO Mark E. Rose in the report. “The financial and real estate markets appear stable as we begin 2016, but variables now surfacing could undermine short-term prosperity. The year ahead seems to be the waning days of a prosperous cycle – perhaps even a cyclical top in liquidity, pricing and transaction velocity.”

“We believe that 2016 will be a very choppy, but ultimately stable, year,” Rose continues. “Building resilience into our business plans and adapting real estate strategies to the evolving demographic, technological and political realities around the world will be critical.” In the U.S., Avison Young foresees “solid investment activity, continued job growth, and, as such, fundamental rent growth in the office, industrial, retail and multi-residential sectors,” according to President of U.S. Operations Earl Webb.

From January 19, 2016 NAIOP Source – Click here to view article.

Repositioning Shopping Malls

Mall owners are looking for new ways to stay competitive in an increasingly online retail world. While repositioning a center is never an easy task, three key transformations can yield success: increasing density by adding a mix of uses, employing new approaches to transit connections, and linking to surrounding neighborhoods.

An article in Development magazine profiles three retail redevelopment projects:

  • Oakridge Center, Vancouver – Redeveloping one of British Columbia’s most successful malls into a mixed-use complex is underway by owner Ivanhoé Cambridge. The complex will offer retail, dining, grocery and entertainment space, along with 424,000 square feet of office and 2,900 mixed-income residential units.
  • The Bloc, Los Angeles — Ratkovich Company and a team of partners are redeveloping the first downtown Los Angeles shopping center to have a seamless connection to the city’s busiest subway station. In one block, the complex will deliver 400,000 square feet of retail, a 32-story office tower, a renovated hotel and new dining and entertainment options.
  • Westfield Century City, Los Angeles – Westfield Group’s 878,200 square foot mall will be redeveloped as “a new urban escape” from the city and traffic, featuring expanded retail space and tree-lined gardens and plazas. The complex is positioned for an influx of new patrons with easy access from an added 15-story residential and office building and a direct connection to the city’s future subway expansion.

From January 19, 2016 NAIOP Source – Click here to view article.

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Is Your Business Staying Salary-competitive?

NAIOP’s 2015 Commercial Real Estate Compensation Survey provides current data from nearly 400 companies on over 150 positions in office, industrial and retail, including executives. Click here to view the report.

This report provides current data by nearly 400 companies on over 150 positions reflecting more than 100,000 distinct jobs, in office, industrial and retail, including executives and key personnel in the fields of acquisitions, development, leasing, management, financing and more.  If your company has residential positions, please see the 2015 National Real Estate Compensation and Benefits Survey.  Information is presented by:

  • Four levels of company size
  • Company type (private and public)
  • Seven real estate specializations
  • Seven U.S. regions and 28 metro areas