Bookmarks: 5 Interesting Articles That May Help You This Week

February 26th, 2018

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in the CRE world. They pull from one of four “corners:” corporate real estate, technology, management science and anything positive. I welcome your comments on these articles and the submissions of others (with credit to you if I post them). I wish you a terrific week! 

Credit: iStock

The Beginner’s Guide To CRE Tech: Why Commercial Brokerages Are Aggressively Launching New Tech Services
“…Cushman & Wakefield’s (announced a) partnership with real estate startup accelerator MetaProp NYC, announced in July. These accelerators, also known as seed accelerators, are mentorship programs that provide educational elements for tech startups for a fixed period of time.” www.bisnow.com

Autonomous Cars Are About To Transform The Suburbs
“We may well be on the verge of evolving a new kind of highly sustainable, near–zero carbon form, one linked by technology, and economically (and increasingly culturally) self-sufficient. Autonomous cars will remotely park in solar-charged sheds off-site, to be called to the home through handheld devices, thus eliminating the need for garages and driveways. With safer vehicles that can see and react to situations better, roadways will be designed with much less paving to mitigate stormwater runoff and flooding. Homes will have drone delivery ports built in, greatly reducing the number of daily household trips and congestion.” www.Forbes.com

Suburbs Heat Up as Downtown Rents Cool
“Once viewed as a symbol of 1970s and ’80s urban flight, the outlying areas around America’s cities have suddenly become cool again. With more and cheaper land on which to develop from the ground up; plenty of 1990s apartment product that’s ripe for rehab; and lots of 1970s-era strip malls being redeveloped into mixed-use projects, walkable urbanlike pockets have been popping up in the ’burbs, and renters have followed.” www.multifamilyexecutive.com

The Oddball Bromance Between Blockchain and Real Estate
‘Would you put your house on the blockchain? What does that even mean? What about just buying property with cryptocurrency? These are the questions that cryptocurrency and real estate pioneers are investigating.” www.inc.com

How to Increase Your Influence at Work
“To be effective in organizations today, you must be able to influence people. Your title alone isn’t always enough to sway others, nor do you always have a formal position. So, what’s the best way to position yourself as an informal leader? How do you motivate colleagues to support your initiatives and adopt your ideas? How can you become a go-to person that others look to for guidance and expert advice?.” www.hbr.org

Your success blesses others. I wish you a great a hugely impactful week!

Ken

 

Bookmarks: 5 Interesting Articles That May Help You This Week

February 19th, 2018

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in the CRE world. They pull from one of four “corners:” corporate real estate, technology, management science and anything positive. I welcome your comments on these articles and the submissions of others (with credit to you if I post them). I wish you a terrific week! 

Credit: iStock

The Quiet Rise of the Downtown Tech Campus
“This concentration in cities is fairly recent. For decades, the tech industry was associated with what Joel Kotkin famously dubbed “Nerdistans”—low-slung suburban office parks surrounded by oceans of parking. The notorious tech buses that shuttled urban-dwelling workers to and from these facilities in the Bay Area were an early indication that techies were no longer content to live in the suburbs. Increasingly, it appears that they’d rather not work there either.” www.citylab.com

The WeWork Manifesto: First, Office Space. Next, the World.
“It can be tempting to dismiss WeWork as just another overvalued start-up that is high on its own rhetoric and flush with easy money from naïve investors. With little more than faddish interior design, free beer and an invitation to socialize with strangers, Mr. Neumann claims to have conjured up a whole new paradigm for white-collar workers — and for education — and vows that it can change the world.” www.NYTimes.com

When Malls Saved the Suburbs From Despair
“I can’t help but think that Americans’ days of hating the mall are numbered. When it gets replaced by Apple Town Squares, Walmart Supercenters, and the online-offline slurry of an ever-rising Amazon, we will miss these zoos of capitalism, these prisons of commerce, where consumerism roared and swelled but, inevitably, remained contained.” www.theatlantic.com

Google’s Guinea-Pig City
“In October 2017, (Sidewalk Labs) announced its most ambitious project yet: transforming the underdeveloped Toronto waterfront into an affordable, eco-friendly smart neighborhood—a little model town to showcase Sidewalk’s innovative technologies and urbanist ideas. For the privilege, Sidewalk has committed $50 million to a year-long, joint-planning process with Waterfront Toronto, an urban-development corporation.” www.theatlantic.com

After 7 Months of Working from Home, I Discovered a Productivity Hack that Keeps Me Focused All Day
“It turns out scenery changes may also boost productivity in traditional office settings. According to Ron Friedman, an organizational psychologist and the author of “The Best Place to Work: The Art and Science of Creating an Extraordinary Workplace,” great companies design workspaces that “facilitate the work their employees do. No single environment is effective for every task, which is why more and more companies are creating hybrid spaces that offer employees a range of uses,” Friedman writes.

Indeed, companies like Etsy, Spotify, and Facebook, to name a few, offer in-office employees various comfortable, inspiring, and spacious communal and individual workspaces as alternatives to a desk.” www.businessinsider.com

Your success blesses others. I wish you a great a hugely impactful week!

Ken

 

Bookmarks: 5 Interesting Articles That May Help You This Week

February 12th, 2018

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in the CRE world. They pull from one of four “corners:” corporate real estate, technology, management science and anything positive. I welcome your comments on these articles and the submissions of others (with credit to you if I post them). I wish you a terrific week! 

Credit: iStock

The Amazon-ification of Whole Foods
“In the broader context of Amazon’s ambitions—to build an operating system for the home, to expand into pharmacies and health care, to become a hit-making television production studio—this is the logical next step in turning Prime into the ultimate “life bundle,” a single membership program to bind consumers to every possible commercial need. As Amazon extends into more product areas, it can own both the search platform and the product, so that when a dad says to the smart speaker on his counter, “Alexa, I need brown rice and pork,” the product that arrives is an Amazon-branded box containing Amazon–Whole Foods–branded rice and pork.” www.theatlantic.com

How WeWork Has Perfectly Captured the Millennial Id
“WeWork is the world’s leading co-working company and the sixth-most-valuable start-up, according to VentureSource. Last year it was valued at $20 billion, a staggering sum for a company renting out short-term office space, mostly to small businesses and freelancers. But like Uber and Airbnb, WeWork positions itself grandly, as a disruptive revolutionary. It promises to “humanize” work, making the office a more creative place, with the right lighting, the right snacks, and, crucially, the right people.” www.theatlantic.com

If You’re So Successful, Why Are You Still Working 70 Hours a Week?
“Long hours are most common in managerial and professional occupations. This is something of a recent trend. In the old days, if you were a white-collar worker, the deal was that you worked as hard as you could at the start of your career to earn the right to be rewarded later on, with security of tenure and a series of increasingly senior positions. In professional organizations, such as law firms, accountancy firms, management consultancies, and investment banks, the prize was partnership. The competition was relentless, but once you won the prize, it was yours for keeps. Partners had autonomy to choose how and when to work and what to work on. Of course, some senior partners spent a surprising amount of their “business development time” on the golf course, but that was OK because they had already paid their dues to the organization.” www.hbr.org

The False Choice Between Automation and Jobs
“The catch is that adopting these technologies will disrupt the world of work. No less significant than the jobs that will be displaced are the jobs that will change—and those that will be created. New research by the McKinsey Global institute suggests that roughly 15% of the global workforce could be displaced by 2030 in a midpoint scenario, but that the jobs likely created will make up for those lost. There is an important proviso: that economies sustain high economic growth and dynamism, coupled with strong trends that will drive demand for work. Even so, between 75 million to 375 million people globally may need to switch occupational categories by 2030, depending on how quickly automation is adopted.” www.hbr.com

Workplace Changes Are Accelerating: Why And What Millennials Should Do About It
“Change is to be expected, unfolding at a constant rate as new generations replace old generations, and as old ideas become obsolete. But here’s the thing; in today’s world, change isn’t unfolding at a constant rate—it’s unfolding at a faster and faster rate. The rate of change in today’s workplace is accelerating, and if you aren’t prepared, it could dramatically impact your career.” www.forbes.com

Your success blesses others. I wish you a great a hugely impactful week!

Ken

 

Office Party? Atlanta Market 2018 Forecast

2017 was a mighty fine year for Atlanta office real estate. Macro events such as tax law changes, a roaring stock markets, very healthy corporate profits and strong employment numbers helped corporate America have a pep in its collective step, and Atlanta was no exception.

As I look deeply into my crystal ball and based on reading, and conversations with economists and market experts, I’ve begun to true up some predictions for 2018 in seven areas:

Thanks Dow Jones Industrials! You Rock!

Development
The goal in 2018 for corporate America in 2018 is employee engagement. Read another way, employers want you to want to come to the office. On the development side, this is dramatically impacting what architects are drawing and where building is occurring. Infill development will continue to thrive. Buildings will continue to strive to look “authentic,” like Hines’ T3 development which will consist of a 200,000 heavy timber frame and wood building planned at Atlantic Station. Authentic design can be achieved using the right materials or by retrofitting an older building – the organic approach to real estate.

The Emergence of the City Center
Maybe the 1950’s are coming back to life in reimagined small town America. Seven city center projects are proposed or under construction around metro Atlanta including the Braves Stadium know as the Battery, Avalon in Alpharetta, City Springs in the City of Sandy Springs,  Assembly in Doraville and others. People like working in a dense environment, but want to enjoy the cheaper housing and larger yards of the suburbs. Some have said the city center concept is the 21st century mall.

Rental Rates
Next year, rental rates on most classes will stop climbing as fast as they did in 2017 and concessions start to return in certain markets like Central Perimeter. I also believe there will be an uptick of subleases as growing companies are forced to move their operations in order to expand. There’s been an increase towards the end of 2017 and we believe there will be even more of this activity in 2018. The one exception to this forecast is newly delivered class A which is the hottest product in our city. Corporations with a pocket book will continue to drive rates in sexy new product to the highest our town has ever seen.

Office Product Types
As always, the market will continue to be a tale of the haves and the have nots. Rental rates notwithstanding, the haves will remain the most popular among tenants that can afford them and investors who pine for the latest and greatest. Take Three Alliance for example. The building experienced a rapid lease-up and has now traded for an historic price. Class B product with inefficient floorplates and lack of support amenities won’t experience near the rental rates of trophy Class A. Expect to see a trophy tower launch in an urban market with much more infill urban development/redevelopment. Finally, urban industrial product is becoming more attractive for redevelopment into creative loft office.

Tenant Demand
Last year, corporate America was catching its breath and approaching with caution because of uncertainty around administration, tax policy and the general business environment. However, with the Dow up 5,000 points in one year, which has never happened in history, the business economy is, and will remain, robust. I believe there will be continued organic growth and M&A activity in 2018. In board meetings and planning meetings, which are taking place right now, I believe businesses are planning for expansion in 2018. In 2017, many companies were a question mark, and that has turned into an exclamation point for 2018.

Capital Markets
In 2018, we anticipate cap rates will remain steady for suburban product. In the suburbs, there were misalligned expectations between sellers and buyers. Sellers forecasted continued rental rate increases, but buyers didn’t agree.  One can anticipate further cap rate compression in high rise urban and “cool” infill product – where she stops, nobody knows.

Technology
Next year will also be the year that the “internet of things” (IOT) begins to have a real impact on commercial real estate. It will rapidly improve the operating efficiency of commercial real estate, and it will be interesting to see what sort of role it will play for building owners and managers, as well as tenants. Building systems will let us know when they need service and save on labor cost. Maybe they’ll bring you coffee at 2 in the afternoon, too.

I saw a beautiful sentence in the Wall Street Journal recently: “investors have abandoned defensive positions, throwing caution to the wind.”  As you complete returning all those gifts back to Amazon, let’s hope Santa is in a good mood all year in 2018. This economy is the gift that keeps on giving.

Let’s keep this ball rolling, shall we?

Bookmarks: 5 Interesting Articles That May Help You This Week

February 5th, 2018

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in the CRE world. They pull from one of four “corners:” corporate real estate, technology, management science and anything positive. I welcome your comments on these articles and the submissions of others (with credit to you if I post them). I wish you a terrific week! 

Credit: iStock

How to Build Trust with Colleagues You Rarely See
“When you exchange pleasantries with a co-worker in the elevator, the two of you are building trust. When you stop by a colleague’s office and see their family photographs on a desk, you learn about that person’s life outside the office and, as a result, usually feel closer. Face-to-face meetings, office parties, and opportunities to socialize together after working hours can all contribute to the feeling that your fellow employees will be reliable in what they say and do and that they will act for the good of the team and the organization. You believe they are trustworthy because you’ve developed this feeling over time.” www.hbr.org

What No One’s Telling You About Writing That Book
“…because it’s so easy to self-publish a book these days, too many people are focused on the fact they can publish one rather than wonder if they even should. And too many never stop to consider what it takes to make the book work for them. They put their blood, sweat and tears into a book, publish it on Amazon and then wonder why nobody is buying it. Or worse, they throw together a PDF with a few famous quotes, call it a “book,” and publish it. Again, nothing happens. But, hey, they have a book!

When there are so many ways to build authority, a book for book’s sake without the follow through to make it successful is a total waste of time. Having the book, in and of itself, is not going to do the thing everyone is talking about. People waste a lot of time writing books without ever having a clear understanding of why they’re writing it in the first place. Don’t make that mistake! If you’re considering writing, here are a few things you should consider.” www.forbes.com

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The Mental Benefits of Vacationing Somewhere New
” I believe that travel should routinely be used to achieve the opposite: to get out of your comfort zone, expose yourself to uncertainty, and eschew rest for exploration and learning. The result is personal growth — greater emotional agility, empathy, and creativity. A recent trip to Sri Lanka, with an unexpected stop in Thailand, led me to think more deeply about the positive impact of adventures that challenge us..” www.hbr.org

When Public Speaking Panic Sets In, How To Be As Bold As Richard Branson
“It’s true to say I’m a natural introvert, but from my experience, shyness is a problem you can overcome. All it takes is practice. If you’re an introvert and find it difficult to communicate with strangers you have to practice, practice and practice – but practice being yourself.”

The point he makes is that when you are first starting out, no one expects you to be a commanding leader or a world-class orator. The key lies in conveying a sense of passion for what you’re doing to whttp://workplaceinsight.net/us-workers-increasingly-prioritise-flexible-working-personal-development-status in over an audience.” www.forbes.com

Workplace Changes Are Accelerating: Why And What Millennials Should Do About It
“Change is to be expected, unfolding at a constant rate as new generations replace old generations, and as old ideas become obsolete. But here’s the thing; in today’s world, change isn’t unfolding at a constant rate—it’s unfolding at a faster and faster rate. The rate of change in today’s workplace is accelerating, and if you aren’t prepared, it could dramatically impact your career.” www.forbes.com

Your success blesses others. I wish you a great a hugely impactful week!

Ken