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ATLANTA — Although U.S. employers have added an average of 181,000 jobs per month during the past year, Americans shouldn't expect a significant economic rebound until 2014. That's the sobering message from Dr. Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University (GSU), who urges consumers to just breathe. “In between now and 2014, the economy will have this stop-and-go progression that will really bother you,” said Dhawan during his presentation at GSU's student center on Wednesday morning. “Don't keel over. Have some hope.” Higher federal taxes will lead to less consumer spending during the first and second quarters of 2013. The workers' share of the Social Security payroll tax, which jumped from 4.2 percent to 6.2 percent in January of this year, means that a family that earns $50,000 will now pay an additional $1,000. That would mean the highest tax burden for most U.S. households since 2008, according to the Wall Street Journal. Source: Georgia State University Economic Forecasting Center Dhawan said that discretionary spending is already getting weak and the data from February, March and April is likely to reflect this trend. But, once the shock of higher taxes wears off, the consumer will …

By Michael Bull Depending on their circumstances, investors in commercial real estate could face noticeably higher tax burdens in 2013 and the years ahead. However, having to fork over more money to Uncle Sam isn’t likely to have a sizeable impact on transaction activity in the sector. Those were some of the points made by accounting and real estate experts in a recent episode of the “Commercial Real Estate Show,” a nationally syndicated weekly talk radio show about business and commercial real estate-related topics in the U.S. The episode provided a look at the many recent federal tax changes, such as increased income and capital gains tax rates, and provided detailed analysis of their potential effects on the commercial real estate sector. “Taxes aren’t what’s been motivating commercial real estate investors that have gotten back in the asset class in the post-recessionary period,” says Mitch Roschelle, a partner at PricewaterhouseCoopers and the leader of the firm’s U.S. Real Estate Advisory Group. “They like commercial real estate because of its durability of income over time.” “Any income-producing asset is going to have the same adverse tax consequences, and real estate is less volatile than perhaps stocks and bonds can be over …

ORLANDO — Same-day delivery from major e-commerce and multichannel retailers during the 2012 holiday season introduced e-commerce as a viable option, even for last-minute shoppers. This evolution in customer demand now ripples through the supply chain for all retailers, prompting executives to re-evaluate real estate strategies, according to a new report from Jones Lang LaSalle. “Retailers are anxious to create effective multichannel strategies that cater to new customer expectations, such as same-day delivery as well as e-commerce and m-commerce,” said Kris Bjorson, head of JLL’s retail and e-commerce distribution group. “This means revaluating their supply chain networks and distribution models down to one of the most important components, their distributions centers.” JLL’s report chronicles the transformation of the warehouse and distribution facilities referred to as big boxes — those exceeding 250,000 square feet — that form the backbone of the supply chain. Multichannel retailers demand changes to these facilities to better support order fulfillment, including more picking and packing tasks that mean more employees are needed at each site. “Multichannel retailers must first articulate their service commitment, then align all their real estate decisions,” says Rich Thompson, head of JLL’s supply chain and logistics solutions group. “Location of big-box facilities …

By Mike Mullin TOTOWA, N.J. — Cloud technology is creating a stir in the commercial real estate world. However, the meaning of this term and the value of its associated technology platform remains ambiguous. So what, exactly, is cloud computing, and how can it help multifamily, office, industrial and retail real estate owners and operators? Most people are familiar with the concept of Software-as-a-Service (SaaS), where software is purchased by subscription, and then delivered to users via the Internet. Cloud has that component — and more. In the simplest sense, cloud computing can be thought of as enabling a large pool of users to share the same resources. The cloud platform enables organizations to manage all of their technology over the Internet. This includes networking components as well as mail, productivity tools and enterprise software. Storage is a big part of it too. Companies can perform backups, and store documents and data via the cloud. Image created by Sam Johnston. Cost reduction: In the cloud environment, a provider administers the infrastructure, including automatic network and software updates. Users have immediate online access to application software and databases; they simply log in and everything is up to date and ready to …

CHICAGO— Although global hotel deal volume in 2013 is projected to remain in line with the most recent three-year average, Jones Lang LaSalle’s Hotels & Hospitality Group believes that signs point to an ongoing uptick in hotel transactions activity in the Americas sooner rather than later. Five forces will drive the hotel investment market during the next five years, pointed out Jones Lang LaSalle at the recent Americas Lodging Investment Summit (ALIS) at the J.W. Marriott Los Angeles LIVE. “There will be a significant amount of property coming to market in 2013 from a combination of the deleveraging occurring as $55 billion of CMBS loans mature in the next few years, and we’ll see investors who bought earlier in the cycle want their capital gains and they’ll sell,” said Arthur Adler, Americas CEO of Jones Lang LaSalle’s Hotels & Hospitality Group. “You can’t underestimate the composition of hotel ownership over a long period of time, as many hotels today are in the hands of traders versus holders,” emphasized Adler. Investors should watch the following five key forces and their impact on the hotel market: Boom or bust?: Global deal volume is projected to reach as high as $33 billion this …

Rachel Goff WASHINGTON, D.C. — The January nonfarm payroll report bolsters the argument that the U.S. economy is slowly improving, and the upward revisions to the 2012 data may encourage commercial real estate investors to take more risk, says Bob Bach, national director of market analytics for Newmark Grubb Knight Frank. Employers added 157,000 net new jobs in January, including 166,000 in the private sector. What’s more, the nation added 335,000 more workers to the employment rolls in 2012 than initially reported. “This report emboldens the risk takers moving into secondary markets and Class A-/B+ assets in primary markets, a trend that is already in place,” says Bach. “If investors believe the economy, specifically the labor market, is improving faster than previously thought, it means the outlook for net operating income at the property level also has improved.” The job gains were healthy across many sectors including retail (+32,600); construction (+28,000); education and health services sector (+25,000); leisure and hospitality (+23,000); and manufacturing (+4,000). For all of 2012, the manufacturing sector added 149,000 jobs, or a monthly average of 12,417 jobs. Two notable areas of contraction were in the transportation and warehousing sector (-14,000), and government (-9,000). REBusinessOnline.com asked Bach …

SAN DIEGO — The Washington, D.C.-based Mortgage Bankers Association (MBA) is predicting originations of commercial and multifamily mortgages to grow to $254 billion in 2013, an 11 percent spike from 2012. MBA previewed its second annual forecast at its Commercial Real Estate Finance (CREF)/Multifamily Housing Convention & Expo in San Diego. Approximately 2,600 real estate finance professionals have registered for the show, which runs through mid-day Wednesday. “2012 was a strong year for the commercial and multifamily mortgage markets, and 2013 is shaping up to continue the growth,” says Jamie Woodwell, MBA’s vice president of commercial real estate research. Multifamily originations will take the lion’s share of the 2013 activity, according to the forecast. Originations of multifamily mortgages are forecast to reach $100 billion in 2013. Additionally, mortgage debt outstanding for commercial and multifamily properties is anticipated to grow in 2013 by more than 2 percent. The forecast calls for 2013 to end the year above $2.4 trillion. The forecast extends beyond 2013. MBA is also predicting that originations will keep its upward trajectory and close 2015 at $289 billion. Jay Brinkmann, MBA’s chief economist and senior vice president of research and education, explains that the commercial real estate finance …

WASHINGTON, D.C.— The U.S. industrial market is poised for significant growth with annual net absorption forecast to reach 150 million square feet in 2013 and 175 million square feet in 2014, according to the NAIOP Industrial Space Demand Forecast. These levels of demand are 50 and 75 percent above the net absorption figure of roughly 100 million square feet notched in 2012. The reduced risk of a double-dip recession and stronger economic and job growth have given the industrial sector a boost, points out NAIOP (formerly known as the National Association of Industrial and Office Properties). “Industrial has heated up,” says Dr. Randy Anderson of the University of Central Florida, one of the authors of the forecast. “The industrial segment will experience strong and continuous growth through the fourth quarter of 2014 due to clarity post-election and post-fiscal cliff, easing in the credit markets, and improvement in both consumer and business confidence.”?? Many economists were jolted earlier this week, however, to learn that the U.S. economy contracted at an annualized rate of 0.1 percent in the fourth quarter of 2012, according to the federal government’s initial estimate. But as The Wall Street Journal reported, the surprise drop was driven by …

By Duke Realty Healthcare Team The healthcare industry and healthcare real estate have changed dramatically during the past several years. Healthcare reform, the Great Recession, lower reimbursements and other issues should continue to drive changes, including new uses of medical office space, creative new partnerships and an increase in monetization of outpatient facilities, according to Indianapolis-based Duke Realty Corp. (NYSE: DRE) Hospitals and health systems should see the following trends over the course of the next five years: 1. Higher-acuity care will increasingly move to medical office buildings (MOBs): The 2010 Patient Protection and Affordable Care Act requires hospitals to invest in, and implement, many costly new systems and procedures. Hospitals also face a continued downward pressure on both Medicare payments and private insurance, all of which is forcing them to look for possible ways to cut costs. MOBs offering higher-acuity care and/or non-acute care are an attractive solution because they cost less to build, operate and maintain than hospitals and inpatient facilities, for both physical and regulatory reasons. North Fulton Hospital’s new North Fulton Medical Plaza in Roswell, Ga., is a good example of an MOB that provides higher-acuity care. Also, outpatient facilities in suburban areas can be a …