February 24th, 2019
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.
“The primary factor that we really looked at was the labor market,” Sullivan told Bisnow Thursday in an interview. “If you look at the RFP, it was fairly concise, but direct on what we were looking for. And that was a location where we could have the talent on day one, but also an opportunity to build that talent pipeline. We specifically referenced a tech talent pipeline.”
The company found that talent hub in Arlington. Amazon will build a 4M SF campus in the newly christened “National Landing” headquarters, and, as part of the deal with Virginia, Virginia Tech has committed to open a $1B satellite campus for innovation 2 miles away.
The public process naturally led to a trial in the court of public opinion, where Amazon has taken its lumps. After months of dealing with staunch opposition in New York City, the company decided to pull out of its agreement to open half of HQ2 in Queens. Amazon wanted a good, long-term partner, Sullivan said, and it lost confidence that it could find one in New York.” www.bisnow.com
“Starting the year on a strong note, architecture firm billings growth strengthened in January to a level not seen in the previous twelve months according to a new report released today from The American Institute of Architects (AIA).
AIA’s Architecture Billings Index (ABI) score for January was 55.3 compared to 51.0* in December. Indicators of work in the pipeline, including inquiries into new projects and the value of new design contracts, also strengthened in January.
“The government shutdown affected architecture firms but doesn’t appear to have created a slowdown in the profession,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD. “While AIA did hear from a few firms that were experiencing significant cash flow issues due to the shutdown, the data suggests that the majority of firms had no long-term impact.” www.aia.org
“Now that we’re a month in to 2019, everyone has recovered from the holiday season and is eagerly looking ahead to the rest of the year. If your company is considering moving to a new industrial building or renting industrial space for the first time, there are some predicted trends that are important for you to know.” www.reoptimizer.com
Could Millennials, long regarded as the renting generation, represent the long-term bedrock of single-family home construction? A special report from Wells Fargo Securities and L.E.K. Consulting says yes.
“Millennials’ delayed household formation has led to a 2.2-million household gap relative to what the historical headship rate levels of their Gen X counterparts would imply,” according to the Wells/L.E.K. report.
That late start in forming households can be attributed to the weak labor market following the 2008 recession, and a student debt overhang, the report says. “However, aging Millennials are set to close the headship rate gap with prior generations—likely driving steady long-term growth in residential new construction.”www.connect.media
As the skies get more crowded, the Federal Aviation Administration is making changes to air-traffic control in hopes of avoiding the kind of widespread delays that travelers experienced routinely 20 years ago.
The total number of minutes that flights were delayed by air-traffic control slowdowns—most of it attributable to weather—soared 69% to 21.7 million in 2017 from 12.8 million in 2012. Twenty-seventeen was a particularly bad year for ATC delays because of storm-related slowdowns, triggering the efforts to find new ways to minimize weather impact. It started working in 2018. Delay minutes actually dropped 4% compared with 2017 because of a new effort to speed flights out of New York airports.
But the number of flights keeps growing—up 2% last year—as airlines add more service, and congestion concerns have spread beyond crowded New York. The FAA is under pressure to find ways to handle storms without as many delays to avoid a return to the quagmire that air travel became in 1999 and 2000, when talk of gridlock abounded.
On April 1, the FAA will change how it handles flights into and out of Chicago and Denver, replicating the changes in New York airspace that reduced delays even as traffic increased. On the same day, it will also launch a major push to reduce slowdowns nationwide when bad weather hits.”[WSJ paywall] www.wsj.com
Your success blesses others. I wish you a great a hugely impactful week!